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On-Device AI Could Kill Data Centers? Perplexity CEO’s Bold Warning Shocks Tech World

On-Device AI Biggest Threat to Data Centers: Arvind Srinivas

Future Devices Will Come With Built-In AI, Says Srinivas

Perplexity CEO Arvind Srinivas has warned that on-device artificial intelligence could become the biggest threat to large data centers. He said future smartphones, wearables, and smart devices will come with powerful AI models built directly into the hardware.

His comments come at a time when global tech giants are investing heavily in data centers. Companies such as Google, Meta, Microsoft, OpenAI, and Perplexity are expanding infrastructure to support AI workloads. Analysts estimate total investments could touch nearly one trillion dollars by the end of this decade.

No Need for Centralized Data Centers?

Arvind Srinivas believes this trend could change rapidly. He explained that if AI chips are embedded directly into devices, users may not need to rely on centralized data centers for AI services.

According to him, on-device AI models can run locally without sending data to the cloud. This shift could significantly reduce dependence on massive data centers.

More Privacy and Personalization for Users

Srinivas also highlighted the benefits of on-device AI for users. Since the AI model stays on the device, it can work according to individual preferences. It can also improve data privacy, as personal information does not need to leave the device.

He added that faster responses and offline functionality will make on-device AI more practical in everyday use.

A Possible Disruption in the AI Industry

Experts say these remarks point to a possible disruption in the AI ecosystem. While data centers remain crucial today, the rise of powerful on-device AI could reshape how AI services are delivered in the future.

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