AI Dev Tools for Windows: New Updates & Features

Microsoft Enhances AI Development on Windows with Windows AI Foundry

Microsoft is focused on streamlining the process for developers to create applications powered by artificial intelligence on Windows-based devices.

During the Build 2025 conference on Monday, Microsoft unveiled Windows AI Foundry. This represents both a rebranding and an expansion of the Windows Copilot Runtime service initially launched in May of the previous year.

A Unified Platform for Local AI

Microsoft characterizes Windows AI Foundry as a “unified platform for local AI development.” It’s designed to facilitate the fine-tuning, optimization, and deployment of the AI models that drive applications within the Windows environment.

The company views AI – whether executed locally or via the cloud – as a significant source of future revenue, despite the substantial development costs associated with leading-edge models.

Financial Impact of AI

Satya Nadella, Microsoft’s CEO, stated in January that the company currently generates $13 billion in annualized AI revenue. This is partially attributable to their strategic partnership with OpenAI, the creators of ChatGPT.

While direct profit from third-party AI applications on Windows may not be immediate, Microsoft intends to cultivate a robust ecosystem on its primary operating system. This strategy aims to provide advantages over competitors, and Windows AI Foundry is central to this plan.

Automated Hardware Detection and Software Components

According to a press release shared with TechCrunch, Windows AI Foundry is capable of automatically identifying a Windows machine’s hardware specifications.

It then retrieves the necessary software components to effectively run a specific AI model. Microsoft also confirms that these components will be consistently updated with the release of new devices.

Introducing Foundry Local

Windows AI Foundry incorporates Foundry Local, a new service that extends the capabilities of AI models to client devices.

Foundry Local, which supports both Windows and macOS, provides a suite of modules for running AI models and tools directly on the device. It leverages the ONXX Runtime, an open-source project focused on accelerating AI performance across various platforms.

Developer Tools and Command-Line Interface

Foundry Local also includes support for a command-line interface. This allows developers to utilize prompts such as “Foundry model list” and “Foundry model run” to explore, test, and interact with models operating on a local server.

“Foundry Local will automatically detect device hardware — CPU, GPU, and NPU — and list compatible models for developers to try,” Microsoft explains.

Developers will be able to integrate Foundry Local into their applications using the Foundry Local SDK.