How to Compare Total Cost of Ownership: AirgapAI Versus Microsoft Copilot in 15 Minutes

Become the Chief Financial Officer who cuts artificial intelligence spend by up to 90 percent and still improves output quality. Savings are good; savings with control are better.

For finance professionals, Chief Information Officers, and procurement teams, understanding the true Total Cost of Ownership (TCO) of an Artificial Intelligence (AI) solution is paramount. This article guides you through a clear and concise methodology to quantify the return on investment (ROI) of AirgapAI. We’ll compare its perpetual, one-time license fee, the elimination of per-user monthly subscriptions and zero token overage charges, and its utilization of your existing hardware, against the recurring costs and complexities of cloud-based alternatives like Microsoft Copilot. Prepare to position your organization for superior cost efficiency, enhanced control over your data, and unwavering compliance with AirgapAI.

1. What is AirgapAI? Unveiling a Local, Secure Artificial Intelligence Solution

Imagine having a powerful artificial intelligence assistant right on your personal computer, one that never sends your sensitive information to the internet. That's AirgapAI. Developed by Iternal Technologies, AirgapAI is a secure, 100 percent local large language model (LLM) platform designed to bring advanced AI capabilities directly to your device without requiring any connection to the cloud.

This means your data, your queries, and the AI's responses all remain entirely on your computer. You retain complete data sovereignty and control, eliminating the security risks and data leakage concerns associated with transmitting information to external cloud servers. AirgapAI is your "easy button" for generative AI, enabling fast, easy, local, and secure AI for business teams, with superior accuracy at a fraction of the cost of cloud-based competitors.

1.1 Understanding Key Artificial Intelligence Terms for Novices

Before we dive deeper, let’s clarify some fundamental terms you'll encounter with AirgapAI:

Artificial Intelligence (AI): In simple terms, AI refers to computer systems that can perform tasks that typically require human intelligence, such as learning, problem-solving, and understanding language.
Large Language Model (LLM): An LLM is a type of AI program specifically trained on vast amounts of text data to understand, generate, and process human language. Think of it as a highly intelligent chat assistant that can write, summarize, and answer questions.
Generative AI (GenAI): This is a category of AI that can generate new content, such as text, images, or code, based on the patterns it learned during its training. AirgapAI utilizes generative AI to create responses to your questions.
Retrieval-Augmented Generation (RAG): This technique enhances LLMs by allowing them to retrieve information from a specific, trusted knowledge base (your data) before generating an answer. This significantly improves accuracy and reduces "hallucinations" (incorrect AI responses).
AI Hallucinations: When an AI generates information that sounds plausible but is factually incorrect or unsupported by its training data, it's called an AI hallucination. AirgapAI's patented Blockify technology is designed to virtually eliminate these.
Total Cost of Ownership (TCO): This is a financial estimate intended to help consumers and enterprise managers determine the direct and indirect costs of a product or system. For AI, it includes licensing fees, infrastructure, maintenance, support, and hidden costs like token usage.
Return on Investment (ROI): This is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments. It directly measures the amount of return on a particular investment, relative to the investment's cost.

2. Why AirgapAI? The Value Proposition for Your Organization

AirgapAI offers a compelling suite of benefits that directly address the most common challenges organizations face when adopting AI: cost, data sovereignty, and accuracy.

2.1 Unpacking the Core Value Proposition

AirgapAI is designed to unleash advanced AI to your workforce without compromising security, and at a fraction of the cost.

Fast Artificial Intelligence Wins: AirgapAI emphasizes ease of deployment and immediate business value. It can be implemented across multiple departments in days, not months, enabling your teams to start leveraging AI quickly.
Cost Efficiency – Own Your Artificial Intelligence: AirgapAI runs at roughly one-tenth to one-fifteenth the cost of alternatives like Microsoft Copilot and ChatGPT Enterprise. It is offered as a one-time perpetual license per device, meaning you and your Information Technology department do not have to manage yet another subscription in your annual budget. There are no hidden token charges or overage bills, providing complete cost predictability.
Data Sovereignty and Security: The solution is deployed entirely locally on an AI PC with no network "in" or "out." This makes it ideal for high-security environments such as government agencies, defense applications, financial services, and healthcare, where data must remain within the organizational perimeter.
Elimination of Artificial Intelligence Hallucinations: AirgapAI introduces a patented Blockify technology that refines data inputs for highly accurate responses, leading to an astonishing 7,800 percent improvement in large language model accuracy, or 78 times more accurate results. If you cannot trust your AI once, you cannot ever trust it.

2.2 Key Differentiators: What Makes AirgapAI Unique?

AirgapAI stands out from the competition with several critical advantages:

78X More Accurate Artificial Intelligence Results: Blockify technology ensures up to 78 times (7,800 percent) more accurate AI results, significantly reducing time spent validating AI outputs and managing data.
Low-Cost Perpetual Licensing: A one-time license fee of just $96 (Manufacturer's Suggested Retail Price) per device, compared to the multiple thousands of dollars per employee over several years for cloud subscriptions. This model saves up to 15 times what competitors charge.
Secure by Design: AirgapAI runs 100 percent locally on the AI PC, powered by Intel. This means your data never leaves your device or corporate domain, safeguarding your most valuable information.
Role-Based Workflows and Entourage Mode: AirgapAI includes Quick Start workflows tailored for different roles and a unique "Entourage Mode" allowing users to interact with multiple AI personas simultaneously. For example, a marketing, legal, and technical support persona can all weigh in on a proposal, each drawing from their respective curated datasets. In defense or intelligence, a Central Intelligence Agency analyst persona and a military tactician persona can provide distinct answers to the same complex question.
Open-Source Flexibility: AirgapAI supports a "Bring Your Own Model" approach, meaning you can use popular open-source large language models or custom fine-tuned models, giving you unparalleled flexibility.
Optimized for the AI PC: AirgapAI makes full use of the three powerful compute engines on modern AI PCs (Central Processing Unit, Graphics Processing Unit, and Neural Processing Unit) for optimal performance and power efficiency across all workloads. It operates seamlessly on Intel, Advanced Micro Devices, NVIDIA, or Qualcomm hardware.

3. The Total Cost of Ownership Comparison: AirgapAI Versus Cloud Artificial Intelligence Solutions

Calculating the Total Cost of Ownership (TCO) is crucial for making informed financial decisions. When comparing AirgapAI to cloud-based AI solutions like Microsoft Copilot, the financial advantages of AirgapAI become strikingly clear, making it an excellent return on investment (ROI).

3.1 Direct Costs: Licensing and Usage

The most obvious difference lies in the licensing model.

AirgapAI's Perpetual License: AirgapAI is sold as a one-time perpetual license per device. The Manufacturer's Suggested Retail Price (MSRP) is just $96. This means you buy it once, and you own it for the lifetime of that device. There are no annual subscriptions, no recurring per-user fees, and no hidden charges. All maintenance and updates are included in this one-time cost.
Cloud-Based Solutions (e.g., Microsoft Copilot): These typically operate on a per-user, per-month subscription model. Over a three-year period, these costs can accumulate to thousands of dollars per employee. For example, if a cloud solution costs $20-$30 per user per month, that’s $240-$360 per user annually. Over three years, this is $720-$1,080 per user. For an organization with 100 employees, this equates to $72,000-$108,000 over three years.
Hidden Costs (Token Overage): Many cloud AI solutions charge based on "tokens" (units of text processed). If your users exceed a certain usage threshold, you incur additional "overage" fees, which can be unpredictable and significantly inflate your monthly bill. AirgapAI has zero token overages, providing predictable costs.

Example Cost Comparison: For a single user over three years:

AirgapAI: $96 (one-time)
Cloud AI (e.g., Microsoft Copilot at $25/month): $25 * 36 months = $900 (plus potential overages)

This demonstrates a potential saving of nearly 90 percent on direct licensing costs alone, not even considering additional cloud infrastructure costs or other fees.

3.2 Indirect Costs: Infrastructure, Security, and Management Overhead

Beyond the sticker price, consider the less obvious but equally significant costs.

Hardware Utilization – Leveraging Your Existing AI PC: AirgapAI runs entirely on your existing AI Personal Computer. This means you do not need to invest in new cloud infrastructure, dedicated servers, or additional data center resources to run your AI. Modern AI PCs, especially those powered by Intel Core Ultra processors, come equipped with a Central Processing Unit (CPU), Graphics Processing Unit (GPU), and Neural Processing Unit (NPU) that AirgapAI fully utilizes, maximizing your existing hardware investment.
Reduced Information Technology Management:
- Deployment: AirgapAI integrates seamlessly into your standard Windows imaging process. It’s a simple executable file, much like installing Microsoft Word or Excel. Updates can be pushed out through familiar image management solutions like Microsoft Intune, significantly reducing the burden on IT teams compared to managing complex cloud deployments or integrations.
- Security Management: Since no data leaves the device, your existing security policies and procedures remain entirely effective. There's no need for new cloud security audits, data egress controls, or complex compliance frameworks specific to a third-party AI service. This significantly reduces the time and resources IT security teams would otherwise spend.
Data Sovereignty and Compliance: For regulated industries (healthcare, finance, government), maintaining data sovereignty and compliance is not just a cost, but a critical risk factor. AirgapAI inherently addresses this by keeping all data local. The cost of a data breach in a cloud environment can be astronomical, encompassing fines, legal fees, reputational damage, and lost customer trust. AirgapAI virtually eliminates this specific risk vector for AI use.
Improved Accuracy, Reduced Validation Time: With 78 times more accurate results thanks to Blockify, your employees spend far less time fact-checking or validating AI-generated content. This translates directly into productivity gains and reduced labor costs associated with rework, further boosting your ROI.

3.3 The Return on Investment (ROI) of AirgapAI

By adopting AirgapAI, organizations can achieve a rapid and substantial ROI through:

Immediate Cost Savings: Up to 90 percent reduction in direct software licensing fees compared to cloud alternatives.
Maximized Hardware Investment: Leveraging existing AI PC capabilities for AI processing, avoiding new infrastructure outlays.
Enhanced Productivity: Faster AI wins, reduced AI hallucination rates (7,800 percent improvement), and tailored workflows mean employees get more done, more accurately.
Mitigated Risk: Eliminating data leakage and privacy concerns associated with cloud AI, protecting against potentially massive financial and reputational damage.
Simplified Information Technology Management: Easy deployment, updates, and robust governance reduce operational overhead for IT teams.

4. System Requirements and Prerequisites for AirgapAI

AirgapAI is designed to run efficiently on modern AI Personal Computers. Here’s what you’ll need to get started:

4.1 Hardware Specifications

Component	Minimum	Recommended
Central Processing Unit (CPU)	8 Cores	8 Cores/16 Threads or better
Random Access Memory (RAM)	16 Gigabytes	32 Gigabytes+
Disk Drive	10 Gigabytes free (Solid State Drive)	50 Gigabytes Non-Volatile Memory Express
Graphics Processing Unit (Integrated or Dedicated)	4 Gigabytes Video Random Access Memory (2024 or Newer)	8 Gigabytes Video Random Access Memory+
Operating System	Windows 11	Latest patches

4.2 Permissions

You will need appropriate security permissions to install applications on your computer. If you are in a corporate environment, your Information Technology department will typically manage these permissions.

5. Step-by-Step Installation and Onboarding Workflow

Installing AirgapAI is a straightforward process, designed for ease of use, even for those with minimal technical expertise.

5.1 Downloading the Installer Package

Obtain the Installer: Your Information Technology department or Iternal Technologies will provide you with a secure link to download the latest compressed file archive (ZIP file) for AirgapAI.
Save the File: Save the compressed file (e.g., AirgapAI-v1.0.2-Install.zip) to your "Downloads" folder or any other writable folder on your computer.

5.2 Installing the Application

Extract the Files:
- Right-click on the downloaded AirgapAI-v1.0.2-Install.zip file.
- Select "Extract All..." from the context menu.
- Choose a destination folder for the extracted files (the default, a new folder under "Downloads," is usually fine) and click "Extract."
Run the Installer:
- Open the newly extracted folder.
- Double-click on the AirgapAI Chat Setup.exe file.
Follow the Wizard:
- Accept the license agreement.
- Choose whether to create a desktop shortcut (recommended for easy access).
- Click "Install."
- Click "Finish" once the installation is complete.
Security Prompts: If your operating system (like Windows SmartScreen) prompts you about security, choose "Allow" or "Run anyway" to proceed with the installation.

5.3 First-Launch Onboarding Wizard

Upon launching AirgapAI Chat for the first time, an onboarding wizard will guide you through the initial setup, especially if no models are found.

5.3.1 Profile and Chat Style

Start Onboarding: Click the "Start Onboarding" button.
Display Name: Enter your preferred display name (the default is "You").
Chat Style: Select a preferred visual chat style. Options include "Iternal Professional," "Casual," "Dark Mode," "Retro," etc.
Next: Click the "Next" button to proceed.

5.3.2 Uploading the Core Large Language Model

AirgapAI runs on open-source large language models. These are the "brains" of the AI.

Access Models Screen: On the "Models" screen, expand the "Available Models" drop-down menu (it will be empty initially).
Upload Model: Click "Upload Model."
Browse for Model: Navigate to the /models/ folder within the extracted installer directory.
Choose a Model: Select a large language model suited to your computer's hardware:
- Llama-1B: Ideal for 2024 integrated Graphics Processing Units or low-power devices.
- Llama-3B: Suitable for integrated Graphics Processing Units from 2025 or dedicated Graphics Processing Units.
Save: Click "Save." The upload typically takes about 30 seconds.

Note: Information Technology administrators can update Chat Large Language Models by modifying the contents of the folder created after model upload, typically found within %appdata% at C:\Users\YourUsername\AppData\Roaming\IternalModelRepo.

5.3.3 Uploading an Embeddings Model

An embeddings model helps the AI understand the meaning and context of your data, crucial for accurate responses.

Upload Embeddings Model: Still on the onboarding page, click "Upload Embeddings Model."
Browse for Model: Open the /models/ folder again and select Jina-Embeddings.zip.
Save: Click "Save." This upload also takes approximately 30 seconds.

Note: Information Technology administrators can update Embeddings Models by modifying the contents of the folder created after model upload, typically found within %appdata% at C:\Users\YourUsername\AppData\Roaming\IternalModelRepo.

5.3.4 Adding Sample or Custom Datasets

Datasets power Retrieval-Augmented Generation (RAG), allowing AirgapAI to answer questions using your specific, trusted information.

Upload Dataset: Click "Upload Dataset."
Browse for Dataset: Navigate to the /datasets/ folder from the install folder.
Select Dataset: Select CIA_World_Factbook_US.jsonl (a sample dataset).
Save: Click "Save."

Note: Information Technology administrators updating datasets can push new updates by modifying the files saved within %appdata% at C:\Users\YourUsername\AppData\Roaming\airgap-ai-chat\CorpusRepo.

Tip: You can upload Word, Portable Document Format, or Text files directly. For larger collections of documents, converting them to Blockify for approximately 78 times greater accuracy is recommended. Local, on-device Blockify will be available starting in Quarter 3, 2025.

5.3.5 Finish Onboarding

Continue: Verify that the core large language model, embeddings model, and at least one dataset are added. Then click "Continue." AirgapAI Chat will now launch with your selected configurations.

5.4 Optional Setup Steps: Dell Technologies Dell Pro Artificial Intelligence Studio Support

For Information Technology teams who desire advanced functionality, AirgapAI Chat supports native integration with Dell Technologies’ Dell Pro Artificial Intelligence Studio (DPAIS).

Install Required Files: As the Information Technology Systems administrator, install the necessary files to enable a large language model via DPAIS (both Intel and Qualcomm hardware are supported).
Validate Services: After DPAIS services are running and you’ve validated that the local large language model Application Programming Interface endpoints can be called, open PowerShell.

Set Environment Variable: Input the following command:

[System.Environment]::SetEnvironmentVariable("DPAIS_ENDPOINT", "http://localhost:8553/v1/openai", "User")

Relaunch AirgapAI: Relaunch the AirgapAI Chat application. The DPAIS large language models available will automatically appear in the model selection menu within the settings page.

6. Initial Model Benchmarking

When you launch a large language model for the first time, AirgapAI Chat will offer to benchmark your hardware.

Run Benchmark: Click "Run Benchmark" (this is recommended).
Duration: The benchmark takes approximately 2 minutes and measures metrics such as tokens per second and inference speed.
Context Size: You can skip this step, but your context-size limits will remain at a conservative 2,000 tokens until a benchmark is completed. After the benchmark, you can change the token context window by visiting "Settings > Chat" and dragging the slider to the desired size (up to 32,000 tokens).

7. AirgapAI Chat User Interface Tour

The AirgapAI user interface is designed for intuitive interaction, similar to popular chat applications.

Chat Window: The central area where you interact with the AI, type your questions, and view responses.
Workflow Bar: Located below the chat window, this bar provides quick access to pre-configured "Quick Start" workflows for common business tasks (e.g., "Sales Proposal – Cover Letter").
Sidebar: This area typically allows you to toggle your datasets on or off, view persona selections for Entourage Mode, and access settings.
Settings Menu: Access advanced configurations, appearance themes, model management, and benchmarking tools.

8. Everyday Workflows: How to Use AirgapAI

AirgapAI empowers you to perform a wide range of tasks with your local AI assistant.

8.1 File Upload and Summarization

This workflow allows you to quickly get insights from your documents without manual reading.

Upload a File: Drag a file (such as a Portable Document Format, Word document, or Text file) directly onto the chat window, or click the paperclip icon (📎) to browse for a file.
Prompt for Summary: In the chat input field, type a prompt like: "Summarize this document in bullet points."
Instant Summarization: AirgapAI Chat will instantly embed the document's content and provide a summary.

8.2 Guided Demo Workflows

AirgapAI comes with pre-built workflows to streamline common business tasks.

Select Workflow: Click on the "Workflow Bar" (below the new chat window) and select a workflow, for example, "Sales Proposal – Cover Letter."
Upload Documents (Optional): If the workflow requires supporting documents, upload them as prompted.
Enter Prompt: Provide a minimal or robust prompt (e.g., "Write a cover letter").
Receive Output: AirgapAI will generate a fully-engineered output.
Copy Text: Click the "Copy" icon (📋) to place the generated text onto your clipboard for use in other applications.

8.3 Retrieval-Augmented Question and Answer with Blockify Datasets

This is where the power of AirgapAI with your own data truly shines, leveraging Blockify for 78 times greater accuracy.

Toggle Dataset On: In the sidebar, toggle your desired dataset ON. For demonstration, select the "CIA World Factbook for USA" dataset.
Ask a Question: In the chat window, ask a specific question related to your dataset, such as: "What are the major political parties in the United States?"
Accurate Response with Citations: The Retrieval-Augmented Generation engine will fetch relevant IdeaBlocks (the condensed, accurate data from Blockify), and then the large language model will synthesize a coherent, trusted answer, showing citations to the source data.

8.3.1 Demonstrating Blockify in Action (Concept)

While on-device Blockify will be available in Quarter 3, 2025, it’s important to understand the process that pre-packages your datasets for AirgapAI. This process essentially takes all of your documents and ingests, dedupes, and distills them into trusted "blocks" of information – from "Docs" to "Blocks."

Ingestion: Blockify ingests large data sets (e.g., thousands of sales documents or Request for Proposal responses).
Condensation: It condenses them into concise, modular "blocks" of data. Each block includes:
- A name (displayed in blue to quickly identify the content topic).
- A critical question (the key query a user might ask).
- A trusted answer (a distilled, accurate response avoiding outdated or redundant data).
Metadata and Security: Each block is tagged with rich metadata, including classification, permissions, and classification levels, to support zero-trust environments.
Review Process: After ingestion, these blocks are typically sent for a quick human review to update or approve messaging, ensuring outdated content is flagged before it impacts AI responses.
Outcome: This process can reduce the original data size by as much as 97.5 percent (down to 2.5 percent of the original) and, remarkably, improve the accuracy of large language models by 7,800 percent.
Updates: As new documents are Blockified, the datasets can be updated and then pushed to local devices via Microsoft Intune or similar image management applications.

8.4 Entourage Mode (Multi-Persona Chat)

Entourage Mode allows you to interact with multiple AI personas simultaneously, gaining diverse perspectives.

Select Workflow: Select an "Entourage Mode" Quick Start workflow from the new chat page.
Configure Personas: (Optional) In "Advanced Settings → Personas," you can configure personas (e.g., Marketing, Sales, Engineering).
Ask a Question: Pose a question (e.g., "I am launching a new product called AirgapAI. It is a 100 percent local chat large language model solution that is one-tenth the cost of other solutions with more capabilities. What do you think? Please answer in short sentences.").
Receive Diverse Responses: Responses will appear in a queue, with persona activity indicators showing which AI is "typing," offering unique insights from each configured persona.

8.5 Multilingual Conversations

AirgapAI can seamlessly handle conversations in multiple languages.

Prompt in Another Language: Simply prompt the AI in your desired language, for example: "Tell me a short story in German about renewable energy."
Seamless Language Switch: The large language model will switch languages and generate the story in German.
Stop Generation: Use the "Stop" button to halt generation at any time.

9. Advanced Configuration and Customization

AirgapAI offers robust customization options for power users and Information Technology administrators.

9.1 Context-Window Expansion

After completing the initial benchmark, you can adjust the large language model's context window.

Access Settings: Go to "Settings → Model Settings."
Adjust Max Tokens: Drag the "Max Tokens" slider to your desired size, up to 32,000 tokens, allowing the AI to consider more information in its responses.

9.2 Styling and Themes

Personalize your AirgapAI Chat interface.

Access Appearance Settings: Go to "Settings → Appearance."
Choose Theme: Switch between predefined themes or build custom Cascading Style Sheets (CSS) for a completely personalized look.

9.3 Workflow Templates

Information Technology teams can pre-load company-specific tasks.

Access Workflows Settings: Go to "Settings → Workflows."
Add/Edit Prompt Chains: Add or edit prompt chains to create custom workflows tailored to your organization's needs.

9.4 In-App Benchmarking Suite

Test the performance of new models.

Access Benchmarking Tab: Go to "Settings → Benchmarking" tab.
Test Performance: Run benchmarks to evaluate the tokens per second and inference speed of different large language models on your hardware.

10. Installation, Updates, and Training

Iternal Technologies ensures that AirgapAI is easy to install, keep updated, and provides ample support.

10.1 Installation Protocol

Delivery: AirgapAI is delivered as an executable file that integrates straightforwardly into your standard Windows imaging process.
Documentation: Our deployment manual provides detailed instructions on imaging, provisioning, and role-specific configuration.
Seed Deployments: For initial deployments or trials, the process is coordinated directly with the Iternal team, ensuring the application and all intended datasets (pre-packaged via Blockify) are pre-loaded.

10.2 Ongoing Updates and Maintenance

Update Cadence: AirgapAI's update cadence is synchronized with typical operating system or enterprise software update cycles.
Deployment: Whether pushing new data, software updates, or security patches, your Information Technology department can deploy new versions through familiar image management solutions.
Update Manager: Updates are delivered by the built-in Update Manager. You can choose "Local Server" or "Cloud" in "Settings → Updates."
- Note: You can change the file server update location by modifying the updaterConfig.json file located at C:\Users\John\AppData\Local\Programs\AirgapAI Chat\resources\auto-updater\updaterConfig.json.

10.3 Training and Support

Introductory Demo: We offer a 30-minute introductory demo to get your team familiar with AirgapAI.
Personalized Training: Personalized training sessions are available as an add-on service.
Online Enablement: Our online enablement page includes step-by-step videos, frequently asked questions, user guides, and troubleshooting tips.
Customer Success: Our dedicated customer success team is available for follow-up calls and additional workshops after the initial deployment, ensuring you maximize the value of AirgapAI.

11. Conclusion: Experience Secure, Cost-Effective Artificial Intelligence Today

AirgapAI offers a swift artificial intelligence win, robust cost savings, and unparalleled data security, virtually eliminating all AI hallucinations—all critical advantages in today’s challenging market. With a one-time perpetual license, 7,800 percent improved accuracy through patented Blockify technology, and 100 percent local processing on your AI Personal Computer, AirgapAI delivers trusted results and peace of mind at a fraction of the cost of cloud alternatives.

Empower your workforce with an AI solution that boosts productivity without compromising your budget or sensitive data.

Download the free trial of AirgapAI today at: https://iternal.ai/airgapai