MacPaw, the Ukrainian software developer known for its Mac utility tools, has partnered with Liquid AI to bring on-device AI inference to its products and eventually to third-party developers building for its SetApp subscription store. The collaboration, announced today, will see Liquid AI develop an on-device inference system called Elix and a local memory system to power MacPaw’s AI assistant Eney, which was first unveiled last year.
The move signals a growing push toward local AI processing, where models run directly on user hardware rather than in the cloud, offering benefits in privacy, latency, and offline functionality. MacPaw’s CEO Oleksandr Kosovan said the locally hosted models will enable users to run assistants and agentic workflows even without an internet connection.
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Why on-device inference matters for MacPaw
Liquid AI, a startup founded by former MIT researchers, designs its models with hardware-specific architectures. “Before training our models, we select an architecture that is different and tailored to the hardware. That allows us to really have the most efficient version of intelligence that runs directly on the device, with benefits like privacy and security,” said Ramin Hasani, co-founder and CEO of Liquid AI, in an interview with TechCrunch.
This approach contrasts with cloud-based AI services that require constant connectivity and raise data privacy concerns. By running models locally, MacPaw aims to differentiate its offerings in a market where Apple already provides its own on-device models for developers. Hasani argues that Liquid AI’s models focus on performance across different capabilities, not just basic tasks.
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“We are also building a customization stack around models. This means that with user input, the models can use the data and improve. We want our models to be adaptable and become more intelligent over time,” Hasani added.
SetApp’s AI evolution and developer opportunities
MacPaw is preparing its subscription-based app store, SetApp, which has over 150,000 paying users, for a wave of AI-powered applications. Once the local processing architecture is locked in with Liquid AI, MacPaw plans to make the technology available to developers, allowing them to integrate on-device inference into their own apps.
Kosovan said the platform will also provide access to other cloud models from companies like Google, positioning SetApp as a one-stop shop for developers seeking flexible AI options. This dual approach — offering both local and cloud-based models — could appeal to developers who need to balance performance, privacy, and cost.
MacPaw is already experimenting with credit-based pricing for AI features in SetApp, where users can perform a certain number of AI operations based on the credits they have and the complexity of the task. This model could become a standard way to monetize AI capabilities within the subscription service.
Implications for the AI app ecosystem
The partnership reflects a broader industry trend toward hybrid AI architectures, where some tasks are handled on-device and others in the cloud. For users, the benefits include faster response times, lower data usage, and enhanced privacy — particularly for sensitive applications like personal assistants or document processing.
For developers, having access to a ready-made on-device inference stack could lower the barrier to building AI-powered apps, especially those that require offline functionality. The integration with cloud models like Google’s also provides flexibility, allowing developers to choose the best tool for each use case.
As AI becomes more embedded in everyday software, the ability to run models locally is likely to become a key differentiator. MacPaw’s move with Liquid AI positions it to capitalize on this shift, while also strengthening its SetApp ecosystem as a destination for AI-driven applications.
Observers will be watching how the credit-based pricing model is received by users and whether other app stores follow suit. The success of this initiative could influence how AI features are packaged and priced across the software industry.
This article is for informational purposes only and does not constitute financial advice. The cryptocurrency and AI markets are volatile and uncertain; readers should conduct their own research before making any investment decisions.
