AI has rapidly expanded from a niche tool into a major consumer product, with token usage rising sharply due to enterprise adoption and agentic AI platforms. As organizations scale AI usage, systems generate more tokens, increasing costs across enterprises. HP aims to reduce these costs by moving AI workloads from cloud systems to local devices, or the edge. The company focuses on AI PCs and other intelligent peripherals, including Copilot-enabled printers and smart meeting-room devices, coordinated through software to deliver office experiences across a device fleet. HP also offers a local-first AI model called HP IQ. HP reported strong early 2026 earnings, with AI PCs representing a growing share of devices sold.
"“Every chat generates a token, and when you scale AI use across organizations, costs start adding up,” Prakash Arunkundrum, HP's chief strategy and transformation officer (CSTO), tells Fortune. “This is what all the data center guys are trying to solve: How to bring the token cost down.”"
"“At the core of our strategy, we are building AI-powered devices, think AI PCs, Copilot-enabled printers, and meeting rooms that have smart intelligence peripherals which understand you,” Arunkundrum says. “We're then stitching them together with software, so that we can deliver experiences in an office across the entirety of your device fleet.”"
"“Edge AI is local, private, and secure, and it drives down the total cost of ownership by slashing token use,” Arunkundrum says. “Imagine you're running a quality inspection in a manufacturing"
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