Microsoft revamps Windows with local AI and agentic tools

Microsoft presented major updates to its Windows operating system on Wednesday, Oct. 7, 2026, embedding artificial intelligence agents and local processing tools directly into personal computers. Speaking at Dogpatch Studios in San Francisco, CEO Satya Nadella described Windows as a hybrid intelligence system that combines cloud services with local AI executed through tools like GitHub.

The revamped Copilot app will run tasks natively on devices when heavy cloud compute is unnecessary. Jacob Andreou, head of Copilot, explained that this approach lowers costs and speeds up execution, allowing the system to perform local actions such as gathering tax documents across a laptop without connecting to the cloud. The app also adds an Autopilot feature for users to configure autonomous agents that manage project updates, deadlines, reminders, and outreach.

Alongside software updates, Microsoft launched the Surface Laptop Ultra, a high-end device priced at $2,599 that goes on sale Oct. 16. Joined onstage by Nvidia CEO Jensen Huang, Nadella revealed that the device runs Nvidia's RTX Spark superchip. Microsoft also announced the Surface RTX Spark Dev Box, priced at $5,999, which will become available in November.

Microsoft previously invested $13 billion in OpenAI but is now reinforcing its own enterprise position against rivals including Google, Anthropic, OpenAI, and Meta. In July, Microsoft reported that Microsoft 365 Copilot surpassed 30 million paid seats, with net additions doubling quarter over quarter. Microsoft shares have rebounded over the past six months, backed by cloud demand, with its next quarterly earnings report scheduled for later this month.