Microsoft tells PC sellers to count PCs as AI spend

In October 2026, at the Canalys Forum in Barcelona, Linton, a Microsoft vice president, told resellers to offer AI PCs. Linton wants PC spend to be part of AI spend, and tells that agents on top models cost too much. The market is weak, and IDC tells that PC shipments in the 3rd quarter fell 20.1 percent to 62.7 million.

The Microsoft plan

Linton tells companies to use large models only where they are necessary, and to operate small models on local PCs. Linton tells that data stays on the PC, there is no cloud token cost, and the work is fast. Microsoft tells that its containers let a company operate agents in a virtual space. Intune, a tool that controls devices, sets the policy.

The numbers

• Windows device revenue: down 22 percent
• Microsoft tells that next quarter can fall 30 percent
• IDC: PC shipments down 20.1 percent

What is not known

Microsoft gave no data that local models do the work correctly. Omdia, a market analyst, tells that when component costs increase, end prices increase. Dell tells that sales stay low this year, and that PCs of 4 years or more cannot do AI work.

Insight: Cloud token cost pushes AI work to the device

Dell tells that open models give 80% of AI tokens at this time, and gave no data. Microsoft tells that token cost is hard, and wants PC spend in AI budgets while Windows device revenue falls. This reads as a move of AI budget from cloud token bills to the device. Windows and Dell hardware are on the device. A PC refresh offer is also a statement about AI cost.