Microsoft has launched a new kind of AI-centric cloud-based PC: the ‘Windows 365 AI-Driven Cloud PC’.

In 2023, ‘AI PC’ became a common term denoting PCs equipped with neural processing units (NPUs). Soon after, Microsoft coined the term ‘Copilot+ PC’, reflecting devices capable of running its Copilot AI software efficiently by using NPUs with at least 40 trillion operations per second (TOPS).

Interestingly, its new ‘AI-Driven Cloud PC’ bucks the trend by seemingly foregoing NPUs altogether. Instead, Microsoft states these PCs operate on its cloud service, Windows 365, utilizing 8 vCPU Cloud PCs hosted in select Azure regions.

These Cloud PC instances, which occasionally come with GPUs, might leverage such hardware for AI tasks, Microsoft suggests.

AI-Driven Cloud PCs promise dynamic scaling of computing power, providing on-demand performance that’s securely streamed from Microsoft’s cloud.

As part of its wider AI strategy, Microsoft has also developed ‘Windows 365 for Agents’, offering virtual PCs designed for AI-driven automation. These cloud-based PCs come with robust security and policy management through the Microsoft Cloud.

While the AI-Driven Cloud PCs come with features like Copilot integration and AI-enhanced Windows Search, access is limited to participants of Microsoft’s Windows Insider program, coupled with its ‘Frontier Program’, which provides early access to select AI technologies.

Despite the focus on Windows 365, Microsoft’s conventional Azure Virtual Desktop (AVD) remains available, now including new hybrid deployment options courtesy of its flexible infrastructure solutions like Azure Arc. This pivot allows AVD to function on various platforms including Hyper-V and VMware vSphere, enhancing its versatility in hybrid cloud configurations.

Tools and services supporting this hybrid cloud approach are being developed by partners like Nutanix, further driving flexibility for IT environments. While Microsoft’s strategy means coming down from the cloud to compete with virtualization leaders like Citrix and Omnissa, it’s clear the future might look different as cloud-native solutions become smarter and more integral to business operations.