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Microsoft wants to move Windows fully to the cloud
(www.theverge.com)
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I really doubt that, at least for the next few years. "AI Assistant" usually means LLMs, and even M2 struggles to run them mostly due to large compute and RAM requirements. If Microsoft could somehow release a truly local AI assistant feature that can run on average windows users' hardware, that would be shake the whole ML field.
True, but they could get the base requirements of a task using OpenAI and then use specialized models locally to do subtasks.
Microsoft owns 49% of OpenAI, they don't need to pay nearly as much per request as we do and the cost will likely decrease over time too.