Bringing local models and sandboxed tools to Windows and GitHub Copilot

Microsoft is integrating local AI inference capabilities into GitHub Copilot for Windows, allowing developers to run models directly on-device. This initiative uses new hardware and software orchestration to balance performance, cost, and security.
Why it matters
Moving AI processing to the edge improves data privacy and reduces latency for developers, marking a shift in how enterprise software handles compute-heavy tasks.
When leveraging agents, developers need both choice and control. They need technologies that offer clear boundaries for their agents and make it easy to choose the model with the right speed, performance, and cost profile for each task. That’s why GitHub offers frontier models from major model providers, as well as options like Project HydraFusion , an orchestrator choosing one or multiple models for each task while balancing performance, cost, and latency. It’s also why Windows has developed Microsoft Execution Containers (MXC) to help secure interactive and non-interactive agentic coding sessions.
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