Distilled R1 models can now run locally on Copilot Plus PCs, starting with Qualcomm Snapdragon X first and Intel chips later. This brings a lot more AI capabilities to Windows, and it’s something Microsoft was already working on with its Phi Silica language models.

Microsoft Corp. Chief Executive Officer Satya Nadella had some kind words for DeepSeek, the Chinese artificial intelligence startup that roiled his company’s shares earlier this week.

Cut to Microsoft and Meta 's earnings calls Wednesday night and things were hunky dory. The CEOs of both companies, while acknowledging the efficiency improvements DeepSeek introduced to its AI models,