Prakash Arunkundrum, HP’s first-ever chief strategy and transformation officer, bets edge AI will ‘bring the token cost down’
Prakash Arunkundrum, HP's chief strategy and transformation officer, emphasizes the importance of edge AI in reducing token costs associated with AI queries. HP aims to shift AI processing from the cloud to local devices, enhancing privacy and security while driving down costs. The company's recent earnings report shows strong growth, attributed to the rising demand for AI PCs.
- ▪HP's revenue for the first quarter of 2026 reached $14.4 billion, a nearly 7% increase.
- ▪Personal systems revenue rose by 11%, with AI PCs now comprising 35% of devices sold.
- ▪Arunkundrum believes that edge AI can help maintain data sovereignty, especially in regions like Asia.
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ChatGPT transformed AI from a niche, behind-the-scenes tool into one of the fastest-growing consumer products in history. That’s only accelerated this year, as use of tokens—the basic building blocks of any AI query—has exploded, thanks to widespread enterprise adoption and the rise of agentic AI platforms like OpenClaw.Recommended Video That’s caused surging AI costs in enterprises, as their systems start to consume more and more tokens. “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.
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