Globally renowned chipmaker, Intel showed off a new Intel chip that could enable generative artificial intelligence chatbots to function on laptops without using cloud data centers for processing power, at a conference for software developers in Silicon Valley.

Scheduled for December, the technology could allow companies and consumers to test ChatGPT-style services without sending private information from their own computer.

It is made possible by updated AI data-crunching capabilities included in Intel's next ‘Meteor Lake’ laptop CPU and by new software the company is providing.

Additionally, at the event, Intel showed off computers that could create a Taylor Swift-inspired song and respond to inquiries in a conversational manner even when they are not connected to the Internet.

Intel’s Chief Executive Officer Pat Gelsinger also said that the ‘Copilot’ AI assistant from Microsoft will be compatible with Intel-based PCs.

Following the company presentation, shares of Intel fell 1.5 percent.

Executives from Intel also stated that the company is on schedule to produce the ‘Arrow Lake’ successor chip next year and that, as promised, Intel's production technology will be on par with Taiwan Semiconductor production Co. Formerly the best chip maker, Intel fell behind but now claims it is on course to catch up.

In the market for the chips needed in data centers to ‘train’ AI systems like ChatGPT, Intel has struggled to overtake Nvidia.

But this week, the chipmaker revealed that it was constructing a new supercomputer for Stability AI, a firm that creates image-generating software. According to Intel, Alibaba Group Holdings in China is leveraging its most recent core processors to offer chatbot technology.

However, the market for processors that will handle AI tasks outside of data centers is much less developed, and Intel sought to make progress there on Tuesday.