Microsoft makes Windows a local agent platform with 137B MAI-Code-1.1 Flash running on-device

satyanadella · x · 2026-10-08

Satya Nadella announced Windows' shift to "hybrid intelligence": unmetered on-device AI. Highlights include MAI-Code-1.1 Flash, a 137B-parameter coding model with a 256K context window optimized to run locally on PCs; GitHub Copilot handing off work to local models to cut costs; Hybrid Intelligence letting Copilot act directly on the PC with sensitive work kept on-device; Code in Copilot for building any software without cloud token spend; and Windows + Agent 365 with MXC, a local sandbox for secure agent execution. Launch hardware includes the Surface Laptop Ultra powered by NVIDIA RTX Spark.

Related event: Microsoft and Nvidia Unite to Reshape the PC with Hybrid AI and RTX Spark(13 posts)→

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