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Microsoft aims to make Windows a base for hybrid intelligence to cut AI costs

Microsoft is moving to develop Windows into a platform for AI agents, highlighting a strategy it calls hybrid intelligence that splits AI work between PCs and the cloud. It said it compressed a coding model introduced at its Build conference so it can run on PCs. The company stressed cost savings, security features in Windows 11, and upcoming releases including HydraFusion local integration and a Windows version of DGX Station.