Arm tries to block Copilot+ PC lauch

Part of an ongoing dispute with Qualcomm

A lawsuit threatens the launch of Microsoft’s Copilot+ PCs.

Microsoft's new line of Copilot+ PCs, which feature NPUs to bring AI processing onto the device, use Qualcomm chips based on designs Qualcomm does not have the rights to use, says chip designer Arm.

The British company, which is majority owned by Japan's Softbank, has been pursuing legal action against Qualcomm since 2022, and is now trying to halt shipments of AI PCs that use the disputed chips.

What is an AI PC?

"AI PC" is a generic term for any device with a neural processing unit, or NPU. Microsoft and Intel want to narrow the definition to only include PCs with an NPU, running Microsoft Copilot, and featuring a Copilot button on its keyboard.

The intent is to create systems that can run AI locally, producing results faster, more efficiently and more securely.

Microsoft's upcoming Copilot+ PC line, due to launch this week, will be the first major series of products officially featuring the AI PC label. But Arm now claims that they violate its IP.

The history of the lawsuit dates back to 2021, when Qualcomm acquired server chip start-up Nuvia.

Nuvia had an Arm license to produce processors for servers. After the acquisition Qualcomm turned Nuvia's focus to other projects, which eventually resulted in the Snapdragon X chip series that are used in Microsoft's new PCs.

Arm cancelled Nuvia's license when Qualcomm changed the company's focus, and argues that doing so revoked Qualcomm's right to use the designs.

Qualcomm, however, says its other Arm licences cover the designs used for Snapdragon X – and that Arm may not have been legally allowed to unilaterally terminate the licence in the first place.

Microsoft's partners, including Dell, Lenovo, HP, Acer, Asus and Samsung, are due to launch Copilot+ PCs tomorrow, the 18th June. It's extremely unlikely that Arm's lawsuit will stop the shipments now, but the legal dispute will continue to hang over the product line.

The case is due to go to trial in December, but analysts expect an out-of-court settlement.

Jay Goldberg, CEO of D2D Advisory, noted, "There is a degree of absurdity of Arm suing its second-biggest customer, and Qualcomm being sued by its largest supplier."