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Document Microsoft Foundry Local setup and usage #461

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47 changes: 47 additions & 0 deletions docs/auth/byok.md
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Original file line number Diff line number Diff line change
Expand Up @@ -10,6 +10,7 @@ BYOK allows you to use the Copilot SDK with your own API keys from model provide
| Azure OpenAI / Azure AI Foundry | `"azure"` | Azure-hosted models |
| Anthropic | `"anthropic"` | Claude models |
| Ollama | `"openai"` | Local models via OpenAI-compatible API |
| Microsoft Foundry Local | `"openai"` | Run AI models locally on your device via OpenAI-compatible API |
| Other OpenAI-compatible | `"openai"` | vLLM, LiteLLM, etc. |

## Quick Start: Azure AI Foundry
Expand Down Expand Up @@ -250,6 +251,36 @@ provider: {
}
```

### Microsoft Foundry Local

[Microsoft Foundry Local](https://foundrylocal.ai) lets you run AI models locally on your own device with an OpenAI-compatible API. Install it via the Foundry Local CLI, then point the SDK at your local endpoint:

```typescript
provider: {
type: "openai",
baseUrl: "http://localhost:<PORT>/v1",
// No apiKey needed for local Foundry Local
}
```

> **Note:** Foundry Local starts on a **dynamic port** — the port is not fixed. Use `foundry service status` to confirm the port the service is currently listening on, then use that port in your `baseUrl`.

To get started with Foundry Local:

```bash
# Install Foundry Local CLI
winget install Microsoft.FoundryLocal

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Copilot AI Feb 13, 2026

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winget install Microsoft.FoundryLocal is Windows-specific. Please either label this as Windows-only (and mention prerequisites) or provide equivalent install steps for macOS/Linux if Foundry Local supports them, so cross-platform readers aren’t blocked.

Suggested change
# Install Foundry Local CLI
winget install Microsoft.FoundryLocal
# Windows: Install Foundry Local CLI (requires winget)
winget install Microsoft.FoundryLocal
# macOS / Linux: see https://foundrylocal.ai for installation instructions

Copilot uses AI. Check for mistakes.
# List available models
foundry model list

# Run a model (starts the local server automatically)
foundry model run phi-4-mini

# Check the port the service is running on
foundry service status
```

### Anthropic

```typescript
Expand Down Expand Up @@ -305,6 +336,7 @@ Some Copilot features may behave differently with BYOK:
|----------|-------------|
| Azure AI Foundry | No Entra ID auth; must use API keys |
| Ollama | No API key; local only; model support varies |
| [Microsoft Foundry Local](https://foundrylocal.ai) | Local only; model availability depends on device hardware; no API key required |
| OpenAI | Subject to OpenAI rate limits and quotas |

## Troubleshooting
Expand Down Expand Up @@ -368,6 +400,21 @@ curl http://localhost:11434/v1/models
ollama serve
```

### Connection Refused (Foundry Local)

Foundry Local uses a dynamic port that may change between restarts. Confirm the active port:

```bash
# Check the service status and port
foundry service status
```

Update your `baseUrl` to match the port shown in the output. If the service is not running, start a model to launch it:

```bash
foundry model run phi-4-mini
```

### Authentication Failed

1. Verify your API key is correct and not expired
Expand Down
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