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Intel has announced a groundbreaking development in AI technology, set to be released in December. This advancement will allow laptops to run generative AI chatbots without relying on cloud data centers for computing power. This announcement was made during a software developer conference held in Silicon Valley.

This innovation has the potential to enable both businesses and consumers to experiment with ChatGPT-style technologies without the need to send sensitive data to external servers. It relies on the incorporation of AI data-processing features within Intel’s upcoming “Meteor Lake” laptop chip, coupled with new software tools that Intel plans to release.

At the conference, Intel demonstrated laptops capable of generating music in the style of Taylor Swift and engaging in conversation, all without an internet connection. Intel’s CEO, Pat Gelsinger, also mentioned that Microsoft’s “Copilot” AI assistant will be compatible with Intel-based PCs. Gelsinger referred to this as a transformative moment in tech innovation.

Following the announcement, Intel’s shares experienced a 1.5% decline. Additionally, Intel’s executives confirmed the development of a successor chip named “Arrow Lake” for the following year. They also expressed their commitment to rival the manufacturing technology of Taiwan Semiconductor Manufacturing Co.

While Intel has faced stiff competition from Nvidia in the data center chip market, particularly for AI training, the market for AI chips outside data centers is still evolving, presenting an opportunity for Intel. With the introduction of OpenVINO software, Intel aims to empower developers to run large language models, akin to those behind ChatGPT, on laptops. This will result in faster responses from chatbots and greater data privacy since data will not leave the device.

Sachin Katti, Senior Vice President and General Manager of Intel’s network and edge group, emphasized that this approach offers improved performance, cost efficiency, and enhanced privacy for AI applications.

Moreover, Analyst Dan Hutcheson from TechInsights suggested that Intel’s approach could appeal to business users concerned about sharing sensitive corporate data with third-party AI providers. If Intel succeeds in making AI accessible to a broader audience, it could significantly expand the market for the chips it manufactures.