Perplexity, Nvidia partner to run AI directly on desktop instead of major cloud providers

Watch on YouTube ↗  |  August 25, 2026 at 18:40  |  1:34  |  CNBC
Speakers
Kate Rooney — Technology Reporter

Summary

Kate Rooney reports on Nvidia and Perplexity launching an AI platform that runs locally on desktop hardware instead of major cloud providers. The pitch is lower compute and token costs, with frontier tasks optionally routed to the cloud. The system will initially use Alibaba's open-source Qwen model and later Nvidia's open-source model, with no mention of Anthropic or OpenAI.

  • Nvidia and Perplexity announce an AI platform that can run entirely on local hardware.
  • The platform runs on Nvidia's desktop-sized AI computer designed for large models.
  • The cost pitch is lower compute and token costs versus cloud data centers.
  • Frontier-level reasoning tasks can be routed to the cloud with user permission.
  • The system initially uses Alibaba's open-source Qwen model, then Nvidia's open-source model.
  • Anthropic and OpenAI are not mentioned in the implementation.
  • Apple is cited as another local AI example with its newest Mac Mini.
Ideas
Kate Rooney Technology Reporter 0:24
Nvidia enables cost-saving local AI trend.
Nvidia and Perplexity are launching an AI platform that runs entirely on local hardware using Nvidia's desktop-sized AI computer, with the pitch that local inference can lower compute and token costs versus sending every prompt to cloud data centers; only frontier-level reasoning tasks would go to the cloud with user permission, and the platform is expected to later use Nvidia's open-source model. This positions Nvidia as a key hardware enabler of the desktop/local AI trend.
Kate Rooney Technology Reporter 1:16
Alibaba Qwen wins local AI model role.
Perplexity's local AI system will initially run on Alibaba's open-source Qwen model locally, and the report notes the implementation does not mention Anthropic or OpenAI; this gives Alibaba's open-source model an adoption win in the desktop/local AI stack before Nvidia's own open-source model arrives.
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