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Satya Nadella
Chairman & Chief Executive Officer, Microsoft

Watch the Surface Laptop Ultra Unveiled at Windows Event

📅 Oct 07, 2026 PCMag 16 MIN 19681 VIEWS 16 SEGMENTS · 1 SPEAKERS
Watch Microsoft CEO Satya Nadella and the Windows team introduce the next era for the OS, including more trustworthy AI agents, the Surface Laptop Ultra and Nvidia-powered laptops and PCs for creators and developers. Read more about the Windows event on PCMag.com's Live Blog Microsoft Surface and Windows Event 2026 https://zdcs.link/zj3qm1 Timecode Chapters: 0:00 Introduction: Agent 365, Microsoft IQ, and Copilot 1:22 Microsoft Execution Containers (MXC) & Agent Containment 2:32 Agent Identity, Observability & Enterprise Management 3:32 Microsoft Defender Agent Security & Risk Containment 4:...

What Satya Nadella said

Written from the verified transcript and checked against it. Every figure links to the moment it was said.

Satya Nadella announced Microsoft's strategy to bring Agent 365, Microsoft IQ, and Copilot to Windows, emphasizing hybrid intelligence that runs locally and in the cloud. He introduced Microsoft Execution Containers (MXC), now GA on Windows 11, for secure agent containment, and highlighted OS-enforced agent-level attribution for identity and manageability. Nadella demonstrated GitHub Copilot's Hydrofusion routing tasks to local models, and introduced Miode 1.1 Flash, a 130 billion parameter coding model quantized to 3 bits, reducing size by nearly 80% while maintaining a 256k context window. He showcased new Windows search quick actions, Copilot app integration, and code generation from prompts. Nadella unveiled Surface Laptop Ultra with NVIDIA RTX Spark, featuring up to 128GB unified memory, a petaflop of AI compute, and over 99% power retention on battery. He announced Call of Duty coming to RTX Spark in 2027, and pre-orders for Surface Laptop Ultra and DevKit with Project Zenith.

Key takeaways

  1. Microsoft Execution Containers (MXC) is now GA on Windows 11, providing runtime composable sandboxes for agent containment.
  2. Surface Laptop Ultra features up to 128GB unified memory and a petaflop of AI compute, with over 99% power retention on battery.
  3. Miode 1.1 Flash, a 130 billion parameter coding model, is quantized to 3 bits, reducing size by nearly 80% while keeping a 256k context window.
  4. Call of Duty will come to RTX Spark laptops in 2027.
  5. Surface Laptop Ultra and DevKit with Project Zenith are available for pre-order today, shipping next Friday.

Numbers and commitments

FigureWhat it refers toTypeAt
130 billion Parameter count of Miode 1.1 Flash coding model metric 5:45
80% Size reduction of Miode model via 3-bit quantization metric 5:45
256k Context window for Miode on-device metric 5:45
128 gigs Unified memory in Surface Laptop Ultra metric 12:20
99% Power retention on battery for Surface Laptop Ultra metric 12:20
18 mm Thickness of Surface Laptop Ultra metric 12:20
4.12 lb Weight of Surface Laptop Ultra metric 12:20
2027 Year Call of Duty comes to RTX Spark timeline 11:57
32 agents Number of agents HP ZGX Fury AI station can scale across metric 15:32

Chapters

  1. 0:00Three core anchors for Windows
  2. 1:24Microsoft Execution Containers GA
  3. 2:07Agent identity and manageability
  4. 3:36GitHub Copilot demo with Defender
  5. 5:45Miode 1.1 Flash on-device
  6. 6:26Windows search quick actions
  7. 7:45Copilot app and code generation
  8. 9:25Autopilot tax filing demo
  9. 11:00Surface Laptop Ultra unveiling
  10. 11:57RTX Spark gaming and partners
Satya Nadella 0:02 ↗
It's wonderful to be in San Francisco with all of you for a Windows event. And so these are the three core things that we've been working on. And today the idea is how do you bring these three things to Windows. And so we are really taking Agent 365, Microsoft IQ, and Copilot. These are the three core anchors to what we've been doing. Right, with Agent 365, this is about IT ops, SecOps, FinOps, all the things that one needs to really be able to trust your agent. Microsoft IQ is essentially the system around the model. In fact, one of the things in the last, I would say, three to four years, we have realized that just having a model doesn't do much for anything. You really do need to orchestrate it. You need to have memory outside of the model. You need to obviously have this harness layer that is able to take multiple models plus context plus memory and the action space and really then prosecute the trajectory of the model's output. And that is what Microsoft IQ does. And then lastly, it's the form factors, right? It's everything from chat to co-work to code and now, of course, agents and autopilots all coming together.
Let's start with containment. Existing sandbox solutions are insufficient for securing AI workloads where containment needs can change with every tool call and every prompt. We built Microsoft Execution Containers, or MXC, to meet that need. With MXC, agents are contained in a runtime composable sandbox. Organizations can set policies for which files and networks an agent can access, and Windows enforces those policies at runtime. Today, I'm excited to announce that Microsoft Execution Containers is moving from preview to GA on Windows 11.
MXC is a cross-platform library. It works on Windows, Linux, macOS. Only on Windows is MXC deeply integrated into the OS. So, organizations get more containment choices and more control of their data. The spectrum of containment Windows offers ranges from process to session to WSLC to VMs to Windows 365 for agents. Developers can start integrating their agents with MXC today. Next, let's talk about identity. Whether an agent is working under your direction or acting on its own, every action it takes should be attributed to the agent, not to you. Only Windows enforces this attribution strongly at the operating system level. That attribution is what makes observability possible. Next, manageability. With built-in containment and observability, Windows brings a new level of enterprise manageability for agents. With Agent 365, it sets policies once and Windows enforces those policies on every device. Windows turns agents into enterprise manageable assets. So, let me bring it together. Local agentic patterns have emerged rapidly, but they're fundamentally insecure because they have broad system access. With MXC, Microsoft Security, and Agent 365, we're unlocking the full potential of agents on Windows.
Here's a website I've built. I'm using GitHub Copilot to update the version of Python my website uses, following the instructions on this external web page. What I don't know is that this page contains some malicious instructions designed to redirect the agent behavior. Just like it does for a user, Microsoft Defender detects and blocks the attempted malicious action and also flags the agent as risky. That's pretty cool. Now, detection tells us something went wrong. Distinguishing the agent from the user lets organizations respond precisely and contain that agent-specific risk. And in fact, Windows makes this possible with OS-enforced agent-level attribution that separates the agent activity from mine. That means access restrictions apply to the agent, not to me. Without this attribution, think of it for a moment. Blocking this malicious agent can also block the user, slowing down productivity. Here I'm asking the agent if it can access this document. Watch what happens. The agent no longer has access to the SharePoint, but my access as a user of this system will remain intact. So I can keep working. We're moving toward a future where hybrid intelligence is always available, running locally where it makes sense, reaching to the cloud when it needs to, and seamlessly bringing the best of both. To bring hybrid intelligence to life, it takes intelligent routing, models, runtime, and silicon all working together to create a meaningful experience. We're working with the GitHub team to bring our vision for hybrid intelligence to life on Windows. Earlier this year, GitHub launched Hydrofusion, which routes each task to the right model in the cloud. Today, we're extending intelligence to Windows, letting Hydrofusion tap into models running locally.
Now, let's talk about these models. At Build, we introduced Miode 1.1 Flash, a 130 billion parameter coding model built for real-world developer workloads. Now we're bringing that same intelligence to your device. This is where full-stack engineering comes in. We have taken that model to three bits of precision, reducing its size by nearly 80% while preserving coding quality. That is an incredible feat of engineering. But really, shrinking the model to the device is only half the story. Miode can work at an impressive 256k context window right on your device.
Now, our goal is simple. Let AI run locally, stay responsive while leaving room for everything else on your PC. Search on the taskbar is where intent begins. So, it's only natural our story starts there. At its core, the new Windows search experience is quicker, more efficient, so you can find your apps, settings, and files faster. Starting this fall on Windows 11 PCs, you can take thousands of quick actions directly from search on the taskbar. You can switch to dark mode. You can turn on do not disturb to help you stay focused. You can turn up your mic volume and then use the inline slider to get to the exact level you want. All of this as fast as you can type. And actions can do more than just settings. You can take a screenshot, directly arrange your windows, all from the taskbar. And my personal favorite, you can send a text message to a friend or colleague just letting them know you're running a little late without having to pull your phone out of your pocket. A quick, intuitive way to move from intent to action.
But of course, right from the taskbar, you'll be able to connect to the new Copilot app when your request calls for it. Ask a quick question and Copilot will bring the answer right there to you in line in search. If you want to have a richer conversation, you can jump directly from search to the full Copilot app.
Code is the easiest way for anyone to build and share an app. No developer experience required. Hybrid intelligence makes code better in three key ways. First, you can now build a native Windows app from a single prompt. This means unlimited apps and widgets, all native on Windows, directly from the Copilot app. Building software for Windows has never been this easy. Next, we introduced MXC support. MXC support means that your code, even locally, is running in the sandbox that we heard about earlier. This means for the first time, not just developers but anyone can write and run code on their local machine with confidence. And lastly, local models. Copilot is now able to hand work down to a local model as it's coding. This means that projects move faster and cost less, just like we saw in GitHub Copilot. These three things transform your PC into your personal software factory. When we introduced Autopilot, we were really excited to talk about the first-ever enterprise-grade long-running autonomous agent. Hybrid Autopilot.
Maybe a little bit late, I was working with Autopilot to pull together a bunch of stuff to file my taxes. And so I'll go ahead and just kick off this simple prompt. And the first thing that Autopilot will do is it'll go into my inbox and it'll find the email from my accountant and it'll look for the specific list of files that we have to pull together. Now, because of hybrid intelligence, Autopilot can now ground against my entire PC. And the documents I need to file for my taxes are all over the place. They're in downloads, they're in documents, half are organized, half aren't. That doesn't matter. Autopilot's able to use hybrid intelligence to ground over absolutely everything with local context. With my permission, it starts to organize. It moves everything into a new folder, pulls things together, and actually starts to rename files. Now, all of this organization and renaming is actually happening with local models. My tax details are not going to the cloud. It creates some subfolders here to give a little bit more structure. And then it finishes by zipping everything that it found into a single zip file that I can easily send to my accountant. Now, Autopilot, of course, always goes one step further. And it also actually goes ahead and composes an email for me to send directly back to my accountant with the zip file that I just created attached. But of course, it pauses here and it makes sure that I'm good to go. I review everything. This looks great. We can go ahead and send the email. And just like that, all of these files are now sent off and in my accountant's hands and we're good to go. So that's Windows.
So that's Windows hybrid intelligence.
This is Surface Laptop Ultra. We built it for developers and creators pushing the limits of performance who want portability with exceptional craft. I've been using Surface Laptop Ultra for the past few months and it's an absolute game-changer. Developers push their machines hard. Here's an intensive developer workflow with GitHub Copilot. But a demanding task shouldn't mean putting everything else on hold. While that work continues, a film is being mastered in DaVinci Resolve. This kind of mastering takes serious performance. The CPU, the GPU, and memory all working together while the developer workload is still running. And Gears of War, which released yesterday, has been running on this machine the entire time, and it runs awesome.
It wouldn't be Windows and NVIDIA without talking a little bit more about gaming. At launch, hundreds of AAA titles that you love and the indies that you play will be great on RTX Spark. And we're super excited to announce that in 2027, Call of Duty will be coming to RTX Spark.
We built Surface Laptop Ultra around NVIDIA RTX Spark. With up to 128 gigs of unified memory and up to a petaflop of AI compute, you can run models on this laptop that simply don't fit on a traditional machine. It has more than two and a half times the thermal capacity of our existing laptops. So, it stays faster even under sustained load. And you don't have to worry about sacrificing performance when you're unplugged on battery. It can maintain over 99% of its power while on battery power. And that's great because it's portable, under 18 mm thin, and less than 4.12 lb. I also love our new PixelSense Ultra Touch display. It has the brightest peak HDR of any laptop. It looks incredible. Our Surface Laptop Ultra has the most ports on a Surface Laptop. Our customers have told us they love magnetic charging and they love the versatility of USB-C. So, we invented Magnetic Connect, the world's first built-in magnetic USB-C charging.
I know. Just bring the connector close and it snaps right into place. Easy magnetic charging without giving up the USB-C port. Surface Laptop Ultra delivers faster time-to-first-token performance for language models and shorter image generation time than M5 Pro powered laptops. Since Build, many of you asked about the Surface RTX Spark DevKit for Build. For those of you who want to push local AI development even further, it ships with Project Zenith, a ready-to-code Windows experience preconfigured out of the box so you can build from day one. I'm excited to share that both Surface Laptop Ultra and the DevKit are available today for pre-order.
RTX Spark brings powerful AI compute to the laptop. DGX Station takes it even further. Look at the ecosystem bringing this to life. Lenovo Yoga 9 2-in-1, a lightweight convertible design with pen support. ASUS ProArt, an incredibly thin design with a 4K OLED display. Dell XPS 16, a seamless glass haptic touchpad with integrated speakers. MSI Prestige N16, a versatile flip form factor with pen and UHD+ OLED display. HP OmniBook Ultra 16 with a distinctive tower hinge design and gesture control on the haptic touchpad. And of course, the Surface Laptop Ultra. All of these RTX Spark laptops are available for pre-order starting today and will begin shipping next Friday. We have the supercomputer. DGX Station for Windows brings data center-class performance together with enterprise-grade security and manageability. With RTX Spark, we're bringing last year's frontier to your laptop. With DGX Station, we're bringing last quarter's frontier to your desk side. Take a look at this.
Take a look at this. For the first time, DGX Station running Windows Live with Dell Precision Pro frontier models and agents work locally, taking months of work, complex work into moments with more control over sensitive data and cost. With the HP ZGX Fury AI station, it shows what happens when work can scale simultaneously across 32 agents, a virtual token factory for development teams. Both coming later this year running the Windows platform organizations know and trust.

Cite this transcript

APA, MLA, BibTeX
APA

Nadella, S. (2026, October 7). Watch the Surface Laptop Ultra Unveiled at Windows Event [Interview transcript]. PCMag. CEOInterviews.AI. https://ceointerviews.ai/interview/3008169/

MLA

Satya Nadella. "Watch the Surface Laptop Ultra Unveiled at Windows Event." PCMag, 7 Oct. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/3008169/.

BibTeX
@misc{nadella2026_3008169,
  author       = {Satya Nadella},
  title        = {Watch the Surface Laptop Ultra Unveiled at Windows Event},
  howpublished = {Interview transcript, PCMag. CEOInterviews.AI},
  year         = {2026},
  month        = {oct},
  url          = {https://ceointerviews.ai/interview/3008169/},
  note         = {Speaker-attributed transcript with timestamps}
}