Microsoft's push to transform Windows into an "agentic OS" that allows AI agents to control PCs is drawing user backlash similar to the Windows 8 controversy, as the company marks the operating system's 40th anniversary this week, writes Tom Warren, a reporter at The Verge who has been covering Microsoft for nearly two decades. Windows chief Pavan Davuluri announced the agentic OS plans in a post on X last week and faced immediate criticism in hundreds of replies before they were locked days later.

"It's evolving into a product that's driving people to Mac and Linux," one person wrote, while another asked for a return to Windows 7's "clean UI, clean icon, a unified control panel, no bloat apps, no ads, just a pure performant OS." Davuluri later responded to software engineer Gergely Orosz, saying "we care deeply about developers" and acknowledging Microsoft has "work to do on the experience, both on the everyday usability, from inconsistent dialogs to power user experiences."

Microsoft CEO Satya Nadella told the Dwarkesh Podcast that the company's business "which today is an end user tools business, will become, essentially an infrastructure business in support of agents doing work." The Recall feature already spooked users when it was initially turned on by default before Microsoft reworked it to be opt-in. Navjot Virk, corporate vice president of Windows experiences, told The Verge that "every user can use [AI agents] when they're ready. It's their choice, they decide."

Autonomous electric tractor startup Monarch Tractor -- which we covered in 2022 -- warned staff Thursday it may need to lay off more than 100 employees, or possibly even "shut down," according to a company-wide memo obtained by TechCrunch. The report adds: The memo comes after Monarch Tractor was already cutting some positions over the last few weeks at its California corporate facilities and remote teams in India and Singapore, according to multiple former employees who spoke with TechCrunch on the condition of anonymity.

Monarch Tractor was founded in 2018 by a team that included a former top executive at Tesla's first gigafactory and Carlo Mondavi, a scion of the famous winemaking family. The company raised at least $220 million, including $133 million in 2024, as it pursued a goal of making "driver optional" autonomous tractors that could perform tasks at places like wineries and other fruit farms.

An anonymous reader shares a report: A Microsoft executive is questioning why more people aren't impressed with AI, a week after the company touted the evolution of Windows into an "agentic OS," which immediately triggered backlash.

"Jeez there so many cynics! It cracks me up when I hear people call AI underwhelming," tweeted Mustafa Suleyman, the CEO for Microsoft's AI group. Suleyman added that he grew up playing the old-school 2D Snake game on a Nokia phone. "The fact that people are unimpressed that we can have a fluent conversation with a super smart AI that can generate any image/video is mindblowing to me," he wrote.

An anonymous reader quotes a report from Politico: The White House is preparing to issue an executive order as soon as Friday that tells the Department of Justice and other federal agencies to prevent states from regulating artificial intelligence, according to four people familiar with the matter and a leaked draft of the order obtained by POLITICO. The draft document, confirmed as authentic by three people familiar with the matter, would create an "AI Litigation Task Force" at the DOJ whose "sole responsibility" would be to challenge state AI laws.

Government lawyers would be directed to challenge state laws on the grounds that they unconstitutionally regulate interstate commerce, are preempted by existing federal regulations or otherwise at the attorney general's discretion. The task force would consult with administration officials, including the special adviser for AI and crypto -- a role currently occupied by tech investor David Sacks.

The executive order, in the draft obtained by POLITICO, would also empower Commerce Secretary Howard Lutnick to publish a review of "onerous" state AI laws within 90 days and restrict federal broadband funds to states whose AI laws are found to be objectionable. It would direct the Federal Trade Commission to investigate whether state AI laws that "require alterations to the truthful outputs of AI models" are blocked by the FTC Act. And it would order the Federal Communications Commission to begin work on a reporting and disclosure standard for AI models that would preempt conflicting state laws.

Canadian librarian Ian Linkletter has ended a five-year legal battle with ed-tech firm Proctorio after being sued for sharing public YouTube help videos that exposed how the company's remote-proctoring AI works. Ars Technica reports: ... Together, the videos, the help center screenshot, and another screenshot showing course material describing how Proctorio works were enough for Proctorio to take Linkletter to court. The ed tech company promptly filed a lawsuit and obtained a temporary injunction by spuriously claiming that Linkletter shared private YouTube videos containing confidential information. Because the YouTube videos -- which were public but "unlisted" when Linkletter shared them -- had been removed, Linkletter did not have to delete the seven tweets that initially caught Proctorio's attention, but the injunction required that he remove two tweets, including the screenshots.

In the five years since, the legal fight dragged on, with no end in sight until last week, as Canadian courts tangled with copyright allegations that tested a recently passed law intended to shield Canadian rights to free expression, the Protection of Public Participation Act. To fund his defense, Linkletter said in a blog announcing the settlement that he invested his life savings "ten times over." Additionally, about 900 GoFundMe supporters and thousands of members of the Association of Administrative and Professional Staff at UBC contributed tens of thousands more. For the last year of the battle, a law firm, Norton Rose Fulbright, agreed to represent him on a pro bono basis, which Linkletter said âoewas a huge relief to me, as it meant I could defend myself all the way if Proctorio chose to proceed with the litigation."

The terms of the settlement remain confidential, but both Linkletter and Proctorio confirmed that no money was exchanged. For Proctorio, the settlement made permanent the injunction that restricted Linkletter from posting the company's help center or instructional materials. But it doesn't stop Linkletter from remaining the company's biggest critic, as "there are no other restrictions on my freedom of expression," Linkletter's blog noted. "I've won my life back!" Linkletter wrote, while reassuring his supporters that he's "fine" with how things ended. "It doesn't take much imagination to understand why Proctorio is a nightmare for students," Linkletter wrote. "I can say everything that matters about Proctorio using public information."

An anonymous reader quotes a report from the New York Times: When Mark Zuckerberg, Meta's chief executive, unveiled the company's Superintelligence Lab in June, he named 11 artificial intelligence researchers who were joining his ambitious effort to build a machine more powerful than the human brain. All 11 were immigrants educated in other countries. Seven were born in China, according to a memo viewed by The New York Times. Although many American executives, government officials and pundits have spent months painting China as the enemy of America's rapid push into A.I., much of the groundbreaking research emerging from the United States is driven by Chinese talent.

Two new studies show that researchers born and educated in China have for years played major roles inside leading U.S. artificial intelligence labs. They also continue to drive important A.I. research in industry and academia, despite the Trump administration's crackdown on immigration and growing anti-China sentiment in Silicon Valley. The research, from two organizations, provides a detailed look at how much the American tech industry continues to rely on engineers from China, particularly in A.I. The findings also offer a more nuanced understanding of how researchers in the two countries continue to collaborate, despite increasingly heated language from Washington and Beijing.

Nvidia blew past earnings expectations with soaring revenue and profit, easing fears of an AI bubble and reinforcing its position as the engine of the global AI boom. From a report: Nvidia's sales grew 62% year-over-year to $57 billion in the October quarter, ahead of the $54.9 billion Wall Street had projected, signaling that demand for AI chips remains strong even as more questions emerge about whether returns from the technology will keep up with the pace of AI infrastructure investments. It posted profits of $31.9 billion, up 65% from the year-ago quarter and also slightly above expectations.

"Blackwell sales are off the charts, and cloud GPUs are sold out," Nvidia CEO Jensen Huang said in a statement, a message that echoes his earlier arguments that fears of an AI bubble are overblown. The company also posted stronger-than-expected sales guidance of around $65 billion for the fourth quarter, another indicator that the AI spending spree isn't slowing anytime soon.

Cloudflare suffered its worst network outage in six years on Tuesday, beginning at 11:20 UTC. The disruption prevented the content delivery network from routing traffic for roughly three hours. The failure, writes Cloudflare in a blog post, originated from a database permissions change deployed at 11:05 UTC. The modification altered how a database query returned information about bot detection features. The query began returning duplicate entries. A configuration file used to identify automated traffic doubled in size and spread across the network's machines. Cloudflare's traffic routing software reads this file to distinguish bots from legitimate users. The software had a built-in limit of 200 bot detection features. The enlarged file contained more than 200 entries. The software crashed when it encountered the unexpected file size.

Users attempting to access websites behind Cloudflare's network received error messages. The outage affected multiple services. Turnstile security checks failed to load. The Workers KV storage service returned elevated error rates. Users could not log into Cloudflare's dashboard. Access authentication failed for most customers.

Engineers initially suspected a coordinated attack. The configuration file was automatically regenerated every five minutes. Database servers produced either correct or corrupted files during a gradual system update. Services repeatedly recovered and failed as different versions of the file circulated. Teams stopped generating new files at 14:24 UTC and manually restored a working version. Most traffic resumed by 14:30 UTC. All systems returned to normal at 17:06 UTC.

An anonymous reader quotes a report from CNBC: The Trump administration will provide Constellation Energy with a $1 billion loan to restart the Crane Clean Energy Center nuclear plant in Pennsylvania, Department of Energy officials said Tuesday. Previously known as Three Mile Island Unit 1, the plant is expected to start generating power again in 2027. Constellation unveiled plans to rename and restart the reactor in Sept. 2024 through a power purchase agreement with Microsoft to support the tech company's data center demand in the region.

Three Mile Island Unit 1 ceased operations in 2019, one of a dozen reactors that closed in recent years as nuclear struggled to compete against cheap natural gas. It sits on the same site as Three Mile Island Unit 2, the reactor that partially melted down in 1979 in the worst nuclear accident in U.S. history. The loan would cover the majority to the project's estimated cost of $1.6 billion. The first advance to Constellation is expected in the first quarter of 2026, said Greg Beard, senior advisor to the Energy Department's Loan Programs Office, in a call with reporters. The loan comes with a guarantee from Constellation that it will protect taxpayer money, Beard said.

A federal judge ruled Tuesday that Meta did not illegally stifle competition when it acquired Instagram and WhatsApp. The decision marks Big Tech's first major victory against antitrust enforcement that began during President Donald Trump's first term. The U.S. Federal Trade Commission had sought to force Meta to sell or restructure the platforms to restore competition among social media networks. Meta argued it faced competitive pressure from TikTok, YouTube, and Apple's messaging app.

A majority of global fund managers think companies are overinvesting, as market anxiety grows about the sustainability of the AI spending boom. From a report: A net 20 per cent of fund managers surveyed this month by Bank of America said companies were spending too much on their investments -- the first time this has been a majority view in data running back to 2005. "This jump is driven by concerns over the magnitude and financing of the AI capex boom," said BofA analysts.

The surge in investment to develop AI infrastructure has been a dominant theme in the record rally in US tech stocks this year -- with chipmaker Nvidia becoming the world's first $5tn company last month -- but growing concerns about the sustainability of this spending has caused a pullback on Wall Street in recent weeks.

Every company would be affected if the AI bubble were to burst, the head of Google's parent firm Alphabet has told the BBC. From the report: Speaking exclusively to BBC News, Sundar Pichai said while the growth of artificial intelligence investment had been an "extraordinary moment", there was some "irrationality" in the current AI boom. It comes amid fears in Silicon Valley and beyond of a bubble as the value of AI tech companies has soared in recent months and companies spend big on the burgeoning industry.

Asked whether Google would be immune to the impact of the AI bubble bursting, Mr Pichai said the tech giant could weather that potential storm, but also issued a warning. "I think no company is going to be immune, including us," he said. In a wide-ranging exclusive interview at Google's California headquarters, he also addressed energy needs, slowing down climate targets, UK investment, the accuracy of his AI models, and the effect of the AI revolution on jobs.

Even after disabling remote control and officially ending support for early Nest Learning Thermostats, Google is still receiving detailed sensor and activity data from these devices, including temperature changes, motion, and ambient light. The Verge reports: After digging into the backend, security researcher Cody Kociemba found that the first- and second-generation Nest Learning Thermostats are still sending Google information about manual temperature changes, whether a person is present in the room, if sunlight is hitting the device, and more. Kociemba made the discovery while participating in a bounty program created by FULU, a right-to-repair advocacy organization cofounded by electronics repair technician and YouTuber Louis Rossmann.

FULU challenged developers to come up with a solution to restore smart functionality to Nest devices no longer supported by Google, and that's exactly what Kociemba did with his open-source No Longer Evil project. But after cloning Google's API to create this custom software, he started receiving a trove of logs from customer devices, which he turned off. "On these devices, while they [Google] turned off access to remotely control them, they did leave in the ability for the devices to upload logs. And the logs are pretty extensive," Kociemba tells The Verge. [...] "I was under the impression that the Google connection would be severed along with the remote functionality, however that connection is not severed, and instead is a one-way street," Kociemba says.

NetChoice is suing Virginia to block a new law that limits kids under 16 to one hour of daily social media use unless parents approve more time, arguing the rule violates the First Amendment and introduces serious privacy risks through mandatory age-verification. The Verge reports: In addition to restricting access to legal speech, NetChoice alleges that Virginia's incoming law (SB 854) will require platforms to verify user ages in ways that would pose privacy and security risks. The law requires platforms to use "commercially reasonable methods," which it says include a screen that prompts the user to enter a birth date. However, NetChoice argues that Virginia could go beyond this requirement, citing a post from Governor Youngkin on X, stating "platforms must verify age," potentially referring to stricter methods, like having users submit a government ID or other personal information.

NetChoice, which is backed by tech giants like Meta, Google, Amazon, Reddit, and Discord, alleges that the law puts a burden on minors' ability to engage or consume speech online. "The First Amendment prohibits the government from placing these types of restrictions on accessing lawful and valuable speech, just in the same way that the government can't tell you how long you could spend reading a book, watching a television program, or consuming a documentary," Paul Taske, the co-director of the Netchoice Litigation Center, tells The Verge.

"Virginia must leave the parenting decisions where they belong: with parents," Taske says. "By asserting that authority for itself, Virginia not only violates its citizens' rights to free speech but also exposes them to increased risk of privacy and security breaches."

An anonymous reader quotes a report from Bloomberg: Amazon Web Services, Microsoft's Azure, and Alphabet's Google Cloud risk being dragged into the scope of the European Union's crackdown on Big Tech as antitrust watchdogs prepare to study the platforms' market power. The European Commission wants to decide if any of the trio should face a raft of new restrictions under the bloc's Digital Markets Act (source paywalled; alternative source), according to people familiar with the matter who spoke on condition of anonymity. The plan for a market probe follows several major outages in the cloud industry that wrought havoc across global services, highlighting the risks of relying on a mere handful of players.

To date, the world's largest cloud providers have avoided the DMA because a large part of their business comes via enterprise contracts, making it difficult to count the number of individual users, one of the EU's main benchmarks for earmarking Silicon Valley services for extra oversight. Under the investigation's remit, regulators will asses whether the top cloud operators -- regardless of the challenge of counting user numbers -- should be forced to contend with a raft of fresh obligations including increased interoperability with rival software and better data portability for users, as well as restrictions on tying and bundling.