After Microsoft's October 7 Windows and Surface event, CEO Satya Nadella said on X that Copilot Code plus on-device models let users build the software they need on the desktop with no cloud token spend, declaring "your PC becomes an infinite software factory." The engine is Microsoft's in-house MAI-Code-1.1 Flash, a 137-billion-parameter coding model with a 256K context window that the post says is now optimized to run on a PC; the on-device version is quantized to about 53GB and peaked at 75.5GB of memory at full context on a Surface Laptop Ultra using NVIDIA RTX Spark. Yet Microsoft's own engineering documentation notes that GitHub Copilot's automatic mode decides task by task whether work runs locally or in the cloud, with one diagram stating that "local inference does not make the session offline" — routing ships at the end of October 2026, hybrid Copilot features reach Copilot+ PCs over coming months, and Code rolls out first via the Frontier early-access program.

Microsoft·Satya Nadella·Copilot·+5