In the realm of processors, the enhancement of AI computing capabilities has become a key industry focus. By 2025, the proportion of AI PCs equipped with dedicated neural processing units (NPUs) in global personal computer shipments may exceed 40%. These devices improve efficiency and privacy by handling AI tasks locally. Microsoft’s Copilot+ certification standard requires an NPU to achieve at least 40 trillion operations per second (TOPS) of performance. Intel and AMD, as major manufacturers, have been adjusting their product lines in recent years to meet this demand, but recent information indicates changes in both companies’ high-end plans.
Intel’s Desktop AI Stagnation #
Intel plans to release an updated version of its Arrow Lake-S desktop processors in the second half of 2025. While this update was initially expected to enhance AI features, the latest details suggest it will retain the existing NPU design. Specifically, this version will keep the NPU 3 architecture, a component first released with the Meteor Lake processors in 2023. The NPU 3’s AI computing capability is 11.5 TOPS, which is well below the Copilot+ threshold. This means that the updated Arrow Lake-S desktop chips will not be able to directly support Microsoft’s full suite of AI experiences, such as real-time caption generation or image editing acceleration, due to their AI processing speed.
In contrast, Intel’s Lunar Lake processors for laptops have already adopted the more advanced NPU 4 architecture. This design offers up to 48 TOPS of performance, not only meeting Copilot+ requirements but also supporting FP16 operations and higher-bandwidth AI task processing. Lunar Lake’s NPU has seen a 12x improvement in vector computation and a 4x increase in overall AI throughput compared to its predecessor. This makes laptop products more efficient at running complex models locally, such as natural language processing or image recognition, while maintaining low power consumption. The decision not to introduce this upgrade to desktop updates may stem from manufacturing process considerations. Arrow Lake-S will continue to use Intel’s 20A node, an advanced 5nm equivalent process. This update primarily involves minor clock frequency adjustments, with performance cores potentially reaching up to 5.5GHz and efficiency cores remaining in the 4GHz range. Overall, the changes are limited to clock optimization and power fine-tuning.
This strategy might reflect Intel’s positioning in the desktop market. Currently, desktop processors like the Core Ultra 200 series integrate NPU 3, supporting basic AI acceleration such as background blur in video conferencing or optimized file search. However, in competition, this appears to be lagging. AMD’s laptop products and Apple’s M-series chips have already achieved higher AI performance. Apple’s M4 processor features a Neural Engine with 38 TOPS, supporting efficient machine learning tasks like object removal in photo editing or speech-to-text. AMD’s Ryzen AI series excels in integrating graphics and neural units, providing more comprehensive local AI support. The insufficient AI capabilities of Intel’s desktop chips could affect its market share in high-end gaming and creator workstations. Data shows that Intel’s share of the global processor market has fallen below 60% in 2024, and the rise of AI PCs is intensifying competition. Desktop users requiring strong AI features may need to turn to external accelerators or cloud services, which adds system complexity and latency.
AMD’s Mobile Strategy Shift #
On the other hand, AMD’s mobile computing plans are also undergoing adjustments. The Medusa Halo product line, originally scheduled to launch after Strix Halo, has reportedly been canceled. This information, from reliable sources, indicates a change in AMD’s high-end APU development path. Medusa Halo was planned to be based on the Zen 6 architecture, equipped with up to 48 graphics compute units, and supporting optional 384-bit memory bus configurations. This would have delivered graphics performance close to the RTX 5070 Ti mobile version while also integrating a powerful NPU, with AI computing capabilities expected to exceed 60 TOPS. With its cancellation, AMD’s focus shifts to the Strix Halo series, which launched earlier this year.
Strix Halo processors, such as the Ryzen AI Max+ 395, utilize the Zen 5 architecture and include 12 performance cores and 24 threads, with a base frequency of 3.2GHz and a boost up to 5.0GHz. It features Radeon 8060S integrated graphics with 40 RDNA 3.5 compute units. In terms of AI, its NPU reaches 67 TOPS, supporting concurrent generative tasks like text-to-image conversion or code assistance. Tests show that Strix Halo’s token generation speed can be up to 2.6 times faster than its predecessor and image generation efficiency improved by 3.3 times when running multiple AI workloads. This makes it suitable for high-end mobile devices, such as gaming tablets or creator laptops, supporting 128GB LPDDR5x-8000 memory to ensure high-bandwidth AI computing.
The cancellation of Medusa Halo may be due to resource allocation or market evaluation. AMD’s current product line already covers AI PC demands from entry-level to high-end. Strix Halo has performed well in both the commercial and consumer markets, with shipments expected to account for over 30% of AMD’s mobile processors in 2025. Compared to Intel, AMD places more emphasis on balancing graphics and AI integration in its APUs, which helps it gain market share in the high-end mobile segment dominated by Apple. Apple’s M-series, such as the M4 Pro, features up to 20 graphics cores and AI performance exceeding 38 TOPS, while leading in power consumption control. However, AMD’s open ecosystem supports more software optimization.
Market Outlook #
Overall market trends indicate that AI PC shipments will jump from 17% in 2024 to 43% in 2025, driven by the end of Windows 10 support and enterprise upgrade demands. Global PC shipments are expected to grow by 4.3%, with AI PCs accounting for over 50% of devices priced above $800. In the desktop segment, Intel needs to fill the gap with the upcoming Nova Lake series, which is rumored to integrate a wider memory bus and upgraded neural units, targeting a 2026 launch. AMD, on the other hand, may concentrate its Zen 6 resources on desktop Ryzen processors, maintaining AM5 socket compatibility to ensure a smooth upgrade path for users.
In the future, with advancements in manufacturing processes, AI performance will become further standardized, driving more applications from the cloud to local execution.