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.

The CEOs of both U.S. tech behemoths spoke about the Chinese startup’s innovations as they disclosed their financial results.

"Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," Mark Zuckerberg said.