According to CoinMeta, Microsoft has announced the “Hybrid Intelligence” initiative, aimed at allowing AI to perform tasks directly on computers. Once authorized, Copilot can read local files and recent activities, organize files, troubleshoot, and write programs. During the demonstration, Copilot automatically gathered tax filing materials, modified file names, packaged attachments, and drafted emails to be sent to accountants. The key to this solution lies in the collaboration between local AI and cloud-based AI; some tasks can be handled by local models, reducing the consumption of cloud token, with sensitive data remaining locally. Microsoft has compressed its programming model, which contains 137 billion parameters, from MAI Code 1.1 Flash to 53GB, so that it can run on high-performance computers equipped with RTX Spark. GitHub Copilot will automatically choose between local and cloud models through Hydrafusion; some programming tasks will no longer rely on paid cloud inference. Microsoft has also introduced a MXC security sandbox to restrict the files and networks that agent can access, preventing unauthorized operations. Currently, MXC is officially available, and new capabilities of Copilot will be gradually rolled out to Copilot and PC in the coming months.