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Home»Technology»“The biggest threat to data centres is on-device AI,” says Perplexity CEO Aravind Srinivas | Technology News
Technology

“The biggest threat to data centres is on-device AI,” says Perplexity CEO Aravind Srinivas | Technology News

January 2, 2026No Comments2 Mins Read
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Perplexity CEO Aravind Srinivas believes AI models running directly on devices could make large data centres less relevant in the future.
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Tech giants resembling Google, Meta, Microsoft, OpenAI and Perplexity are pouring billions of {dollars} into information centres, with analysts predicting that whole spending may swell to just about $1 trillion by the tip of the last decade. Nonetheless, Perplexity CEO Aravind Srinivas believes that the way forward for synthetic intelligence would come from regionally run on-device AI fashions.

In a podcast with Prakhar Gupta on YouTube, Srinivas mentioned that the “largest risk to a knowledge middle is that if the intelligence may be packed regionally on a chip that’s working on the gadget after which there’s no must inference all of it on like one centralized information middle.” The Perplexity CEO added that the advantages of on-device AI fashions is that it’ll simply adapt to consumer preferences because the AI mannequin will likely be “residing in your laptop.”

AI chatbots resembling ChatGPT, Gemini, Perplexity and others at present depend on large servers housed in information centres to course of consumer queries. These services not solely eat monumental quantities of electrical energy but in addition require fixed upkeep and rely closely on water to maintain machines cool.

Nonetheless, Aravind Srinivas argues that such information centres. that are principally funded by tech giants, may change into a lot much less related if AI processing shifts to gadgets themselves. Operating fashions regionally, he says, wouldn’t solely lower electrical energy and upkeep prices but in addition considerably enhance consumer privateness by maintaining information on the gadget.

Whereas at present’s AI fashions are too massive and resource-intensive to run effectively on smartphones or laptops, Srinivas believes advances in chip expertise from corporations like Apple and Qualcomm may make on-device AI viable sooner or later. Srinivas additionally addressed the problem of hallucinations in AI methods, acknowledging that present fashions nonetheless hallucinate “right here and there,” however predicting that the issue might be mounted fully within the subsequent 5 years.

 

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