The anticipation in the air was palpable as attendees gathered in Seattle for the kickoff of Microsoft Build, the annual event renowned for charting the company’s strategic trajectory in the world of software and hardware. This year, Microsoft unveiled an audacious new vision: Windows AI Foundry, a groundbreaking framework aimed at repositioning Windows from its traditional role as an operating system to the very heart of next-generation AI computing. The announcement did more than just introduce a new set of tools—it signaled the dawn of what Microsoft now calls the “open agentic web,” where intelligent agents become the primary interface and mechanism for interacting with computers. The implications of this shift extend well beyond just Windows, tying into fundamental debates about privacy, hardware innovation, open standards, and the future of personal productivity.
For decades, the Windows operating system has operated as a neutral backdrop, facilitating everything from web browsing to enterprise business applications. While its influence as a foundational layer cannot be overstated, the OS itself has rarely been considered “intelligent.” That now changes with the debut of Windows AI Foundry. Announced at Build on Monday and previewed to select journalists at Microsoft’s Redmond campus the day prior, the AI Foundry is more than just a new feature—it’s a rearchitecture of Windows itself.
Unlike previous AI integrations, which often required a connection to cloud services, Windows AI Foundry is built to bring powerful AI models directly onto users’ PCs. Microsoft technical fellow Stevie Bathiche, head of the company’s Applied Sciences Lab, was unequivocal: “The North Star that we’re all headed to is really the agent,” he said, describing the rise of intelligent AI agents as a generational leap in how people interact with computers. “[It’s] the new unit of interaction...the new unit of programming.”
Bathiche emphasized that Windows AI Foundry doesn’t just use the NPU—it leverages all available processors to manage workloads efficiently. “Managing the workloads efficiently across all the devices is super important,” he stressed. The technical ambition here is staggering: enable near-instant, privacy-preserving AI model execution using every ounce of local hardware capability. This approach brings key advantages:
Microsoft’s hardware partners are already lined up to launch Copilot+ desktops and laptops, with the company expecting that, “within a few years, most new Windows machines will fall into this category.” The promise? Everyday users will have access to advanced AI tools directly on their devices, without the latency, connectivity, or privacy concerns of the cloud.
Microsoft’s public statements at Build echoed prior calls from CTO Kevin Scott and others for open standards to govern the evolution of this “agentic web.” The analogy is explicit: just as open web standards unleashed the browser-driven internet, Microsoft envisions a future where standard protocols define how autonomous agents interact, regardless of their underlying vendor or platform.
What distinguishes Microsoft’s strategy is its attempt to “have it all”: enabling both rich, cloud-based and highly private, on-device AI experiences. By betting heavily on open standards, developer freedom, and hardware flexibility, Microsoft is signaling a belief that the next era of computing will be more fragmented, user-driven, and decentralized.
Some developers, particularly those in regulated industries or with international users, are keenly interested in how the Foundry framework handles issues like model provenance, data locality, and compliance with regional privacy laws.
Yet, this transition will require not just new software and hardware, but a cultural change in how users and organizations conceptualize privacy, trust, and productivity. Users must become comfortable ceding a portion of control to autonomous agents, while organizations must revisit existing practices around identity, permissions, and data governance.
It is an inflection point rich with potential and fraught with uncertainty. Microsoft has made its move—now eyes across the industry will watch closely to see if Windows can once again redefine how the world computes.
Source: GeekWire Microsoft unveils Windows AI Foundry, retools PC operating system for agents
Rethinking the Core: Windows as an AI-Centric Platform
For decades, the Windows operating system has operated as a neutral backdrop, facilitating everything from web browsing to enterprise business applications. While its influence as a foundational layer cannot be overstated, the OS itself has rarely been considered “intelligent.” That now changes with the debut of Windows AI Foundry. Announced at Build on Monday and previewed to select journalists at Microsoft’s Redmond campus the day prior, the AI Foundry is more than just a new feature—it’s a rearchitecture of Windows itself.Unlike previous AI integrations, which often required a connection to cloud services, Windows AI Foundry is built to bring powerful AI models directly onto users’ PCs. Microsoft technical fellow Stevie Bathiche, head of the company’s Applied Sciences Lab, was unequivocal: “The North Star that we’re all headed to is really the agent,” he said, describing the rise of intelligent AI agents as a generational leap in how people interact with computers. “[It’s] the new unit of interaction...the new unit of programming.”
The AI Foundry Framework: Local, Open, and Decisively Powerful
At its core, Windows AI Foundry is designed as an open framework, empowering developers to fine-tune, deploy, and run both open-source and custom AI models on end-user hardware. This is achievable not just through traditional CPUs, but via the orchestration of GPUs and, crucially, NPUs (neural processing units) embedded in the forthcoming wave of Copilot+ PCs.Bathiche emphasized that Windows AI Foundry doesn’t just use the NPU—it leverages all available processors to manage workloads efficiently. “Managing the workloads efficiently across all the devices is super important,” he stressed. The technical ambition here is staggering: enable near-instant, privacy-preserving AI model execution using every ounce of local hardware capability. This approach brings key advantages:
- Reduced reliance on the cloud, improving speed and privacy.
- Increased capability for offline AI usage.
- Greater flexibility for developers to build custom, context-aware applications.
Copilot+ PCs: Hardware Built for the Agentic Era
The Foundry announcement is tightly coupled with the new Copilot+ PCs. These devices represent Microsoft’s vision for the next generation of Windows hardware: systems engineered not just for generic computing tasks, but specifically tuned for running sophisticated AI models locally. By integrating dedicated NPUs alongside traditional processors, Copilot+ PCs dramatically boost the efficiency and responsiveness of AI-powered features within Windows.Microsoft’s hardware partners are already lined up to launch Copilot+ desktops and laptops, with the company expecting that, “within a few years, most new Windows machines will fall into this category.” The promise? Everyday users will have access to advanced AI tools directly on their devices, without the latency, connectivity, or privacy concerns of the cloud.
The Open Agentic Web: Beyond Chatbots and Copilots
Much of Microsoft Build is doubling down on “the open agentic web.” Until now, much of the AI hype has focused on discrete chatbots, copilots, or assistants—single-purpose software that helps with particular types of digital tasks. The new vision goes far deeper, striving for truly autonomous agents: persistent, adaptive, and interconnected pieces of software able to act on behalf of users and cooperate with other agents across services and even across platforms.Microsoft’s public statements at Build echoed prior calls from CTO Kevin Scott and others for open standards to govern the evolution of this “agentic web.” The analogy is explicit: just as open web standards unleashed the browser-driven internet, Microsoft envisions a future where standard protocols define how autonomous agents interact, regardless of their underlying vendor or platform.
Strengths of Microsoft’s AI Operating System Push
Microsoft stands to gain—and potentially deliver—enormous value if its Windows AI Foundry strategy succeeds. Several notable strengths are clear:1. Hardware-Accelerated, Local AI
By supporting devices equipped with CPUs, GPUs, and now NPUs, the Foundry framework enables developers to optimize for performance, power efficiency, and responsiveness. This is a marked improvement over traditional cloud-reliant AI, which is subject to network latency and bandwidth constraints. For scenarios where privacy is paramount—such as sensitive enterprise data analysis or personal productivity applications—keeping models and computation on-device is a powerful differentiator.2. Open-Source, Developer-Focused Ecosystem
Microsoft’s commitment to supporting both open-source and proprietary models is designed to spark innovation and alleviate common vendor lock-in concerns. Developers can fine-tune foundation models using familiar data and workflows, giving rise to applications more tightly tailored to user needs.3. Future-Proofing Windows
By making agentic intelligence the foundation of the OS rather than a bolt-on feature, Microsoft is future-proofing Windows. As Bathiche put it, it marks a “major change in how people use computers.” It also positions Windows to stay relevant in the face of emerging competition from cloud-first operating systems and other AI-centric platforms.4. Alignment With Broader Industry Trends
Microsoft isn’t alone in betting on local AI acceleration; Apple’s rumored moves in this space and Qualcomm’s push for AI-capable chips underscore a broader arms race. By embracing open standards and cross-hardware support, Microsoft can potentially prevent fragmentation and drive a cohesive developer story.Potential Risks and Open Questions
While Microsoft’s ambitions are impressive, several risks and open questions merit scrutiny:1. Fragmentation of the Agent Ecosystem
If the dream of the “open agentic web” fails to materialize, there’s a real risk of fragmentation—wherein each OS, browser, or application maintains its own incompatible AI agents. Previous attempts to standardize platforms (think web browser compatibility issues) suggest a long, contentious road ahead. Microsoft’s call for open standards is laudable, but successful execution will require industry-wide buy-in.2. Security and Privacy Concerns
Running sophisticated AI models locally increases the stakes around endpoint security. If an attacker can compromise an on-device agent, the power of that agent could be used maliciously (for example, scraping confidential data or impersonating a user). Moreover, allowing third-party models to fine-tune and run on personal hardware widens the attack surface. Microsoft must deliver ironclad sandboxing and permissions frameworks to maintain trust.3. Hardware Adoption and Cost
The Copilot+ PC vision assumes rapid adoption of NPUs and AI-optimized components. While vendors such as Intel and AMD are onboard, the pace of hardware refresh cycles—particularly in the enterprise—could slow widespread adoption. Concerns remain regarding the premium pricing of next-gen hardware, especially as the technology is still maturing. Will the benefits of on-device AI be compelling enough to justify the investment for mainstream and business users?4. Developer Learning Curve and Backward Compatibility
Empowering developers to build “agentic” applications is a noble goal, but it raises questions: Will existing Windows applications be able to efficiently leverage these new frameworks? How steep is the learning curve to build or port software to this model? Microsoft’s history with developer transitions—think from Win32 to UWP—means the company must tread carefully to avoid confusion or alienation among its base.5. Verifying Claims Around Performance and Privacy
While initial demos and announcements are promising, independent evaluations will be critical. Previous attempts to run AI workloads on-device have often encountered performance bottlenecks or generated limited real-world value. Until Copilot+ PCs are widely available and tested by third-party reviewers, many of Microsoft’s claims, such as near-instant responsiveness and robust privacy, remain aspirational.The Competitive Landscape: Microsoft, Apple, Google, and Open Source
Microsoft’s push to reinvent Windows as a first-class AI platform mirrors heated competition throughout the industry. Apple is expected to reveal powerful on-device AI capabilities in upcoming versions of iOS and macOS, and Google continues to push the boundaries of AI both in the cloud (with Gemini and Bard) and locally (via Android). Open-source initiatives such as OpenAI’s GPT models and Meta’s Llama are empowering a new generation of developer-focused AI tools that blur the lines between proprietary and community-led approaches.What distinguishes Microsoft’s strategy is its attempt to “have it all”: enabling both rich, cloud-based and highly private, on-device AI experiences. By betting heavily on open standards, developer freedom, and hardware flexibility, Microsoft is signaling a belief that the next era of computing will be more fragmented, user-driven, and decentralized.
Early Demos and Developer Reaction
At Build, early developer reactions appeared enthusiastic but cautiously optimistic. The ability to run advanced AI models directly on hardware—without needing to “call home” to the cloud—is highly appealing for both privacy and speed. However, many developers are waiting to see what specific APIs, documentation, and support Microsoft will provide. The company’s announcement that “most new Windows machines” will soon fall under the Copilot+ category raises hopes that AI-powered features won’t be an elite niche but a widespread capability.Some developers, particularly those in regulated industries or with international users, are keenly interested in how the Foundry framework handles issues like model provenance, data locality, and compliance with regional privacy laws.
The Bigger Picture: From Keyboard and Mouse to Agentic Interactions
“The keyboard and mouse have dominated for decades, but now, AI agents are changing how people interact with software.” With these words, Bathiche captured the philosophical shift at the heart of Microsoft’s gambit. The practical impact could be immense: from scheduling meetings and drafting emails to writing code or summarizing legal documents, users could soon interact with their computers via natural language and proactive intelligent agents.Yet, this transition will require not just new software and hardware, but a cultural change in how users and organizations conceptualize privacy, trust, and productivity. Users must become comfortable ceding a portion of control to autonomous agents, while organizations must revisit existing practices around identity, permissions, and data governance.
Looking Forward: The Road to the Open Agentic Web
Ultimately, the success of Microsoft’s Windows AI Foundry and the broader agentic web will hinge on several interlocking factors:- The pace at which hardware makers can deliver cost-effective Copilot+ PCs.
- The degree to which developers, especially third parties, embrace and extend the Foundry framework.
- The efficacy of Microsoft’s efforts to align with, and indeed shape, open agentic standards across the industry.
- The company’s ability to address privacy, security, and user control concerns without sacrificing functionality or openness.
It is an inflection point rich with potential and fraught with uncertainty. Microsoft has made its move—now eyes across the industry will watch closely to see if Windows can once again redefine how the world computes.
Source: GeekWire Microsoft unveils Windows AI Foundry, retools PC operating system for agents
