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Microsoft Launches “Mu,” New On-Device AI Model for Copilot+ PCs

Microsoft Corporation (NASDAQ:MSFT) is one of the best US tech stocks to buy now. On June 23, Microsoft officially launched a new small language model called Mu. The AI tool is designed for efficient local operation on personal computers, particularly the new Copilot+ PCs. Unlike larger AI models that rely on cloud processing, Mu operates entirely on a device’s Neural Processing Unit/NPU, which enables rapid responses while consuming less power and memory.

Mu is an efficient 330 million parameter encoder-decoder language model optimized for small-scale deployment on NPUs. Its design was carefully tuned to fit the hardware’s parallelism and memory limits, and ensure peak efficiency for operations. The model’s development used insights gained from Microsoft’s earlier Phi models and was pre-trained on hundreds of billions of high-quality educational tokens.

A development team working together to create the next version of Windows.

To enhance its performance despite having fewer parameters, Mu was fine-tuned using advanced techniques such as distillation and low-rank adaptation, and it also incorporates transformer upgrades like Dual LayerNorm, Rotary Positional Embeddings/RoPE, and Grouped-Query Attention/GQA. Initially, the Mu model will be applied to the Settings function within the Windows system, using natural language processing to convert user inputs into system commands.

Microsoft Corporation (NASDAQ:MSFT) develops and supports global software, services, devices, and solutions.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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