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Elon Musk Envisions AI Replacing Operating Systems in Future IoT Devices

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BusinessHonor: AI & Future of IoT by Elon Musk

Business Honor
28 August, 2025

Musk predicts AI-driven devices will phase out traditional software, enhancing IoT efficiency.

Tesla and xAI CEO Elon Musk has again outlined his ambitious vision for the future of technology, foreseeing that artificial intelligence (AI) will revolutionize how we utilize intelligent devices entirely. In Musk's vision, devices such as smartphones and computers will become edge nodes for AI processing, phasing out the role of conventional operating systems and applications. This transition will be a dramatic transformation in the era of IoT (Internet of Things). Musk's vision focuses on the concept that rather than depending on central servers to execute AI processes, more AI inference (decision making based on data) will occur locally on devices. Musk believes that bandwidth constraints make it infeasible for all AI operations to be executed remotely. As a result, processing data on devices such as smartphones, laptops, and even household appliances will become much more effective and efficient.

This transition will transform the IoT ecosystem, with the devices already networked together. AI will do everything, from presenting graphics to producing sound, on the device itself in the future, rendering current operating systems and applications unnecessary. This will facilitate quicker, more personalized, and more intuitive user interfaces, as the devices become smarter and more responsive. Musk also hinted at a grand project through his AI firm, xAI, named Macrohard. His sarcastic name implies a world where AI-based software might replace conventional software companies like Microsoft. This is also part of his overall agenda to revolutionize the way we communicate with devices and make AI and IoT complement each other better. In conclusion, Musk's vision for the future of AI and IoT is one of a smarter, more efficient world, where devices no longer depend on conventional software but are powered by smart systems that operate directly with users in real time.