Differences between cloud and local models in Xcode Intelligence

I can't use cloud-based AI providers, so I'm very excited about the potential of local models with Xcode's Coding Assistant.

I've been playing around with a local MLX model, and have been generally pretty satisfied with it. But I'm curious - what features am I missing out on by using a local model instead of a larger, cloud-based model?

Is Xcode's ability to run tests, build the project, etc. limited by the use of a local model? Does it limit the ability to do more complex agentic workflows? If so, how?

Basically, local models in Xcode seem to be working pretty well for me, and I'm curious to know what cloud-based models can offer that I don't already have.

I was surprised not to see a local model option after installing the Xcode 27 beta. I haven't watched any of the coding assistant videos yet, (very much not interested in cloud-based AI providers) but I am also curious about whether MLX has been found to be just not as good as the cloud-based providers, or whether there is some other reason Apple decided not to include a local-model option.

Differences between cloud and local models in Xcode Intelligence
 
 
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