Microsoft's AI PC push meets a wall of RAM prices, but Redmond is still beating the drum

Microsoft is pushing for its AI PC push despite rising RAM prices, aiming to reshape how enterprise customers think about PC refreshes. The company believes using the right model for the right job, and running smaller models locally on Windows PCs, can help mitigate these costs.

In a recent call to action at the Canalys Forum in Barcelona, Microsoft's Mark Linton, corporate vice president for Windows and Device Sales, emphasized the need for distributors and resellers to support AI PCs. Linton proposed using massive Language Models (LLMs) where most needed, running smaller models locally at the edge on Windows PCs to keep data locally, reduce token costs, latency, and gain more control.

Although Microsoft reported a 22% drop in revenue for its Windows OEM and Devices division in Q1 of its fiscal 2027, the company remains optimistic about the future of AI PCs. Microsoft aims to convince customers of the benefits, including improved productivity, cost reduction, innovation, and enhanced security. The company is heavily investing in Windows, focusing on platform capabilities and security to enable AI capabilities across various agents and models.

Microsoft is also focused on selling AI PCs to both customers and enterprise procurement teams. The company is investing in channel programs, including AI-readiness headcount for top partners, to get the hybrid AI story moving. Dell, however, remains cautious about an uplift in PC demand this year, attributing it to enterprises conserving assets and re-investing in infrastructure.