Microsoft takes MAI-Code-1.1-Flash local: 137B MoE scores 70.8% SWE-Bench Verified on-device, GitHub Copilot to route between local and cloud
At its Oct 7 Windows event Microsoft shipped an on-device MAI-Code-1.1-Flash (137B total / 6.8B active MoE, 256K context, ~3.3 bits per weight) on RTX Spark PCs, scoring 70.80% SWE-Bench Verified and 66.29% Terminal-Bench 2.1 locally. GitHub HydraFusion will route Copilot tasks between local and cloud models in experimental preview later in October, with no inference charge for local calls; MXC agent containment went GA the same day.

Key Takeaways
- On-device: 70.80% SWE-Bench Verified (cloud 72.6%) and 66.29% Terminal-Bench 2.1 (cloud 62.9%); GPT-OSS-120B scored 32.0% / 23.6% in the same test (Microsoft Command Line)
- Footprint: ~3.3 bits/weight mixed precision plus DFlash2 speculative decoding; 75.5GB peak memory at 256K; 923.5 / 769.8 tok/s prompt processing at 64K / 128K
- Routing: HydraFusion local+cloud routing reaches the Copilot app, Copilot CLI and VS Code in experimental preview later in October, with no inference charge for local calls (Windows Blog)
- Available now: Copilot CLI 1.0.94-0+ discovers local Ollama models via
/model(tool calling + streaming required) (GitHub Changelog) - Security: MXC agent containment is GA on Windows 11, already supported by Codex, Copilot, OpenClaw and LM Studio, with Claude Code and Hermes Agent among those to follow