Perplexity Adds Hybrid Local-Cloud AI to Personal Computer

Perplexity is introducing a hybrid AI system in Personal Computer that automatically routes tasks between a local model on a user's laptop and cloud-based AI models. Starting July 2026, the system assigns routine, sensitive tasks, like managing financial records or health data, to a smaller local model for privacy and control, while sending complex queries to larger cloud models. This shift enables users to maintain data sovereignty by avoiding centralized data centers. The local model handles personal files, while cloud processing powers advanced reasoning. This architecture supports privacy, reduces data transmission, and gives users greater control over their information flow.