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Data centres have made AI features run seamlessly on devices for billions but is that really the future of the technology?
AI runs on data centres but its future is primed for on-device processing
The big AI push is putting a lot of strain on data centres and also the industry that is now making more RAM and storage to meet the heavy demand. But all this can be negated with another solution to make AI work and that is linked to on-device AI processing, something that premium devices already support.
And Perplexity CEO, Aravind Srinivas believes that will be the biggest threat to traditional data centres since all the AI data can be privately handled on the device rather than sending it to another server for processing.
Data Centers Pose Risks
Srinivas was speaking on a podcast and highlighting the scope for AI to thrive but without the assistance of data centres in the near future. The biggest threat to a data centre is if the intelligence can be packed locally on a chip that’s running on the device, and then there’s no need to run inference on all of it on one centralised data centre,” he said.
And it is an interesting take which companies like Apple might be adopting and their delayed AI approach may finally win them a frenetic race. It has been building private computing systems and also the hardware that will make AI work on-device. Even Samsung has devised a way to make its Galaxy AI features work on-device, while Google has prioritised AI features over general performance with the Tensor chips on the Pixel devices.
So, what Srinivas has said here does make a lot of sense, not only with the overall performance but the cost factor as well.
Privacy Matters More
Data centres are vast physical spaces that also consume a lot of water and other resources which can be utilised elsewhere. On-device AI can be a threat to that aspect of the industry but one that many might be happy to bite, especially if it helps on multiple fronts and keeps the ecosystem thriving without affecting others.
This is also a big deal for the future of user privacy as people look to sign up for more AI tools and the last thing you want is a mishap that not only exposes your data but also allows rogue AI elements to misuse them.
Perplexity is in the running with OpenAI and Google with its AI chatbot and Comet AI browser. But market figures suggest the Srinivas-run platform has a long way to go before challenging the giants. They have tied up with Airtel for a unique AI Pro deal which was free till last month but now the company wants people to add their payment details to access the trial offer.
Delhi, India, India
January 05, 2026, 13:08 IST
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