Microsoft

Microsoft MVP Creates Site to Remind You of All the Brands Redmond Replaced (theregister.com) 30

Microsoft MVP Loryan Strant has created the Microsoft Rebrand Registry, cataloging 72 Microsoft products and the 158 names they've had over the years. His analysis finds that Microsoft product names survive an average of two years and eleven months. The site even predicts which products are most likely to get renamed next, "by considering the amount of time the current name has applied, prior names, and the frequency with which Microsoft changes names of products in the same family," reports The Register. "That methodology led him to suggest an 'elevated' likelihood of name changes for the Azure App Service, Azure SQL Database, Azure DevOps, and Microsoft Dynamics 365 Field Service." From the report: Readers may remember that Strant has also created the site Let Me Correct That For You, which lists the exact names of Microsoft products -- an effort he told The Register he thinks is useful because Microsoft in its wisdom uses Camel Case for names like PowerPoint but went with conventional capitalization for Copilot.

Another of his sites immortalizes Microsoft cloud product logos. He's also created HumbledandHonored.com, a site that generates social media posts MVPs can use to announce they have earned or retained Microsoft's awards.

Strant told The Register that the Rebrand Registry came about after some banter between himself and other MVPs, during which the topic of Microsoft's many product name changes came up. He decided to do something about it.

AI

Anthropic Criticized For Adding Watermarks to Text that Claude Generates - or Processes (futurism.com) 90

This week Anthropic announced its Claude chatbot will watermark the text it generates, reports the blog Futurism. "It works by making subtle changes in the AI's word choices across the text it generates, which are supposed to be imperceptible to a human but, in aggregate, form a pattern that is detectable with the tool." Anthropic said it was implementing the watermark system in response to the European Union's landmark AI Act passed in 2024, which requires that AI companies mark content that's been generated or edited by their systems.
TechCrunch notes that other companies including Google, Meta, Microsoft, OpenAI, and Synthesia have committed to adhering to the EU's code. But "The news about Claude watermarking kicked off a firestorm on X," reports Forbes, "with users panicking that AI-assisted writing will now bear a kind of permanent 'scarlet letter.'" (Forbes wonders if media companies are normalizing AI "while at the same time stigmatizing the output.")

But there's another issue. Anthropic said the watermark indicates Claude processed text, Business Insider points out, "not that it was necessarily the original author. The company said marks can remain after Claude proofreads, translates, summarizes, or otherwise edits content... a watermark shows that Claude processed text, not necessarily that it wrote it."

In the days since, "Dozens of people have posted on X since Monday that they had canceled their Claude subscriptions, citing the watermark." Vladislav Rajtmajer, a freelance developer in the Czech Republic, told Business Insider he canceled his Claude Max subscription on Tuesday, citing the watermark as the main reason. He said he uses AI for code reviews and translations, and worried an AI label on code shipped to clients could raise questions about authorship or trigger contract penalties... Richard Echols, an AI consultant in Georgia, also said he canceled his Claude Max subscription on Wednesday and that the watermark was a major factor in his decision. He said he uses Claude to create documentation for businesses and worried the mark could appear when he had written the underlying material himself and used the chatbot only for edits. "Even if you edit your own work that you wrote, they add the watermark anyway," Echols said...

Anthropic isn't the only AI lab to use watermarks: Google uses its SynthID technology to watermark AI-generated content, and OpenAI uses SynthID for supported images and audio. Elon Musk's social media platform X also adds a "Made with AI" tag on content it determines to be AI-generated or manipulated.

Long-time Slashdot reader kmleon (also a tech consultant and RPG researcher) experienced another issue. He'd built some software using their own custom-built AI tool, only asking Claude to do some testing. "Little did I know that Claude would sometimes decide, since it was involved on the edges... to take credit for all of my work, claiming some parts were either '100%' or 'Co-Authored/Created' by Claude.Ai / Claude Code!" I'm sure the good folks at Anthropic will eventually tweak Claude enough to, hopefully, not make these mistakes in the future.... I only became aware of it today, because I recently setup scanners to catch Claude incorrectly watermarking any content it touches for various projects I'm working on. I found that it has (apparently as far back as Sonnet 4.6, but as recently as today, August 14th, 2026) sometimes been mistakenly over-zealous in taking credit for 100% creating or co-authoring docs, code, images, videos, etc. I've only, so far, found about a dozen instances spanning the past year, and most of them appear to have been injected in the last few weeks, so it is not a common issue (yet).
On the bright side? Maybe watermarks can help AI stop training on AI-generated text.

Although Forbes also reports that Google "announced on Friday that it will now let users remove the visible watermark from AI-generated images, videos and music created with several of its models."
Windows

It's Not Just RAM: Windows Licenses Are Also Pushing Up PC Prices (cnet.com) 99

It's not just RAM prices that are going up, writes CNET. "Reports suggest the cost of Windows licenses for manufacturers is rising by up to 10%." Several sites that closely follow Microsoft news, including Windows Central and Windows Latest, have published articles citing a report from Taiwan's Economic Daily News that claims some PC manufacturers are seeing a 7% to 10% increase in the cost of Windows 11 licenses...

Because they buy licenses in bulk, they get a sizeable discount over what a consumer would pay for a new copy of Windows 11. But given the existing cost pressures from other components, a big Windows 11 price hike could lead them to pass on some of the added cost to PC buyers. According to the EDN story, PC makers could raise prices by about 5% over the next quarter due to the reported Windows price hike. .. A translated version of the Economic Daily News article contains information from an unnamed PC brand executive. It says that while Microsoft typically raises licensing costs every year by single-digit percentages, that hike has reached 7% to 10% this year, a significant increase.

"A representative for Microsoft declined to comment on the report," according to the article.

But it also notes that three weeks ago laptop maker Framework blamed price hikes and reconfigurations for some of their models on processor, memory, storage, "and other silicon costs — but also "an increase in Windows license costs."

Thanks to Slashdot reader joshuark for sharing the article.
Microsoft

Microsoft Retreats In China (reuters.com) 62

Microsoft has been steadily scaling back its China presence, closing at least 15 branch offices and joint ventures over the past five years as Beijing favors domestic software. U.S. export controls also make it harder to grow its cloud and AI businesses, leaving the market with relatively little economic upside. Reuters reports: Microsoft took a major hit from the erosion of trust between Washington and Beijing, the five people said. China has since 2017 pushed the use of domestic software, which Beijing sees as more secure and whose quality is increasingly competitive with Windows and Office. U.S. restrictions, including export controls on advanced technology, have meanwhile hindered efforts to scale Microsoft's lucrative AI and cloud businesses in China.

[...] Microsoft ultimately decided to remain because it had carved out a profitable business servicing Chinese companies like TikTok owner ByteDance, which need Western technology to manage overseas operations, according to three people familiar with the matter. The company also believed that it needed a presence to maintain access to China's world-class engineering talent, two of them said. Microsoft had also cultivated a relationship with the government that is among the deepest of any tech company, its former China head Alain Crozier told Reuters. "Because of the geopolitics ... some days it's a little bit harder, but we never had a crisis," he said.

A Microsoft spokesperson did not address questions about the firm's deliberations on its China business but said it operates in a regulatory "environment that applies to every international supplier" and that it remains committed to the Chinese market. The state of Microsoft's China business reflects market competition, regulatory demands and technological trends, the company said.

Microsoft

Microsoft Is Combining Its Copilot Apps Ahead of a 'Super App' 54

Microsoft is merging its consumer Copilot and Microsoft 365 Copilot apps ahead of a broader "super app" launch later this year. "Both personal and work accounts will be moved to the new unified app, which recycles the 'Microsoft Copilot' name but features an updated app icon," reports The Verge. "The single app also means there won't be two annoying Copilot icons in the system tray or taskbar anymore." From the report: The updates are intended to be a technical milestone in preparation of the "super app" Microsoft is planning to launch later this year, so this is laying the foundations of what will be changing for Copilot products. A worldwide rollout for the mobile and web apps will start in "mid-August," according to Microsoft, with a rollout to Windows and Mac apps set for "mid-September." Mobile app users will be prompted to download the new Copilot app, and the updates will start appearing for some Windows Insiders this week.

What changes you'll see will depend on which Copilot apps you're already using. Existing Microsoft Copilot users will be moved to the updated version, along with your chats and content, while Microsoft 365 Copilot app users will see "minor navigation changes," the updated Copilot icon, and gain access to Copilot chat. If you already use both apps, Microsoft says your chats and content will be merged to a single updated Copilot app, but notes that chats, content, and data will remain separate between account types within the app.
Microsoft says enterprise security, compliance, and government controls will remain unchanged and core Copilot features will remain free, though usage limits may vary. Podcasts, Deep Research, and Group Chat content will, however, be discontinued after August 18.

The company also says Shopping and Copilot Health "may be temporarily unavailable" during the transition.
Operating Systems

Linux Desktop Use Surged To 22% On One Workday, Cloudflare Data Shows (zdnet.com) 66

Cloudflare data suggests desktop Linux usage in North America has climbed to 6.4%, up from 4.1% a year earlier, with one post-holiday workday briefly spiking to 22%. ZDNet reports: [B]elieve it or not, on Monday, July 6, when people were back after the July 4 holiday, Linux usage jumped to a high of 22%. The users of these systems are not AI agents or bots, but real people. I set Cloudflare to count humans rather than bots. If you include people and bots, Linux has a 9.7% market share. That proportion is similar to StatCounter's score. By Cloudflare's count, bots alone come to 19%.

These numbers tell us that workers are leading the way to the Linux desktop. [...] However, past performance doesn't explain present trends. So, why are we now seeing such a bump in Linux desktop growth? Experts believe this trend is largely AI developers and Linux users running AI Agents. For example, as David Linthicum, former managing director and chief cloud strategy officer at Deloitte Consulting and AI and cloud influencer, recently observed, while "Windows 11 can technically run local AI workloads, but as you begin using multiple tools, managing different projects, and installing various dependencies, the friction starts to build," it's a different story for Linux users.

Linthicum continued: "Linux delivered what I can only describe as a true 'AI desktop' experience. Setup was straightforward, mainstream AI instructions matched what you'd actually see in your environment, and GPU-accelerated apps simply worked -- consistently. I spent far less time troubleshooting and far more time actually executing on projects." As for agents, Linux Foundation CEO Jim Zemlin summed up their role succinctly: "Linux is the OS of choice for AI agents."
Desktop Linux is also gaining momentum as frustration with Windows 11 and the end of Windows 10 support push users to alternatives, particularly on older PCs that can't officially upgrade. At the same time, Linux has become much easier to use, install software on, and game with, lowering many of the traditional barriers to switching.
Android

First Rival Android App Store Arrives In the US Play Store 22

Aptoide has become the first third-party Android app store available directly through Google Play in the U.S. "The change is a direct result of Google's litigation with Epic, which saw a judge rule in 2024 that the Play Store would have to open up to third-party stores," notes The Verge. The change makes rival storefronts far easier to discover and install, potentially opening the door for Epic, Amazon, Samsung, Microsoft and others to distribute their own app stores through Google's store. From the report: Third-party app stores have always been available on Android, which is a more open platform than iOS in that respect. However, until now they've only been available if pre-installed on a device -- as with the Amazon Appstore on Fire tablets or Samsung's Galaxy Store -- or installed via sideloading. Listing rival storefronts within the Play Store makes them much easier for users to find and access. [...]

Aptoide itself is relatively little known, but it's likely to be the first of many alternative app stores. It's presumably only a matter of time before the Epic Store makes its own appearance, and the likes of Amazon, Samsung, and other phone manufacturers may also want to put their stores in front of potential customers.
The Almighty Buck

Wall Street Giants Partner With Nvidia On $500 Billion AI Financing Deal (yahoo.com) 45

Nvidia is working with Wall Street heavyweights on a potential $500 billion financing package for AI infrastructure (source paywalled; alternative source). The consortium includes BlackRock's Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs and KKR. The Financial Times reports: The partnership underscores Nvidia's growing efforts to raise capital for itself and its clients to continue assembling the chips, power production and data centres at the heart of the AI boom. The $5.25 trillion company has positioned itself at the centre of the AI boom, providing chips, infrastructure and software to a wide array of partners developing the technology. Nvidia's graphics processing units, or GPUs, underpin most of the leading US AI models available today.

[...] The biggest cloud-computing companies, including Meta, Oracle, Microsoft, Alphabet and Amazon, have dramatically increased their spending on AI infrastructure as they look to win the race to dominate the emerging technology. Morgan Stanley projects so-called hyperscalers will spend $3.5 trillion between 2026 and 2028. That need for capital has forced technology groups to tap every source of cash they can find, including public equity, investment-grade and high-yield bonds, securitized debt, private credit and project finance markets.
"[The] sheer size of the AI infrastructure build-out is unprecedented," Jim Zelter, president of Apollo, said on an earnings call earlier this month. "More than $8 trillion of capital is expected to be invested, a staggering sum. We see an enormous opportunity for private capital to finance a portion of this along with public capital."
Windows

Microsoft Responds to Outcry After Quietly Installing Beta 'Photos' App on Enterprise Machines (windowslatest.com) 72

Microsoft's cloud storage app OneDrive got a new Photos app in the worst possible way, reports the blog Neowin . "The app is reportedly showing up even on Windows 11 Enterprise machines, despite apparently being a beta application aimed at consumer functionality." One admin questioned why a beta app was appearing on an Enterprise SKU in the first place, while another described the situation as yet another consumer-oriented feature being forced onto corporate PCs. Things get even more frustrating for IT departments because there does not appear to be a straightforward Microsoft-provided way to disable the app... Enterprise administrators generally need to know what is being installed on their managed devices, particularly when a software is labeled as beta. Quietly adding another application and leaving admins to clean it up themselves is therefore unlikely to win Microsoft many fans.
But there's another problem, according to the blog Windows Latest. "OneDrive Photos automatically scans your system storage for photos," and apparently "doesn't need a Microsoft account to work, as it can also detect your local files." There's also a People section that groups similar faces in your photos. Microsoft asks for permission before turning it on and explicitly warns that facial data could be considered biometric data in some regions. The company says only you can see the grouped faces, that the data isn't shared with third parties, and that you can delete it by disabling the feature.
In a statement to Neowin, Microsoft admitted this new photos "experience" they're "incubating" had gone "more broadly than it should have," and then promised that "We're fixing that." The spokesperson also said the Windows Photos app will "always give you the option of local and cloud photos" and, also a choice of whether or not to use it OneDrive."

But there's another "awkward catch," notes the blog Digital Trends. "Users currently can't uninstall OneDrive Photos without removing the main OneDrive app too." Because OneDrive Photos is tied to the main OneDrive sync client, Windows 11 doesn't currently offer a separate uninstall option. The only straightforward way to get rid of OneDrive Photos right now is to uninstall OneDrive itself... Removing the main client can also affect its File Explorer integration and shortcuts...

Microsoft says this will change. The company is working on controls that will let users remove OneDrive Photos separately from the main OneDrive app. On enterprise PCs managed through Intune, Microsoft says the app will automatically disappear where it isn't supported.

AI

Microsoft, Google, Amazon, Meta and Oracle Expect a Negative Cash Flow of $125 Billion Next Year (washingtonpost.com) 76

The Washington Post shared surprising news this week about five top AI companies.

Microsoft, Google, Amazon, Meta and Oracle "are spending so much on developing AI and delivering it to customers that they're expected to bleed cash in the coming year, according to a Washington Post analysis of data compiled by S&P Global Market Intelligence." Free cash flow, which measures the cash left over after paying expenses and AI infrastructure costs, is now expected to shrink to almost nothing for the five companies combined in 2026, and decline again to negative $125 billion the following year... AI spending by Amazon and Google pushed the companies to an ignominious milestone: They lost more cash in the past three months than any other large U.S. companies, according to S&P Global data. Investment analysts expect Elon Musk's SpaceX to show even worse cash bleeding this week.
Graphics

Azure CTO Pastes Doom Into Paint One Frame At a Time (theregister.com) 42

Microsoft Azure CTO Mark Russinovich used Claude to build a gloriously impractical setup that runs Doom in the background and pastes each rendered frame into Microsoft Paint through the Windows clipboard. The project is referred to as "DoomPaint" or "MS Paint Doom" on GitHub. The Register reports: To be clear, Microsoft Paint isn't doing anything other than serving as a place to paste from the game. [...] ViZDoom runs the Doom .wad file and renders it headlessly. Each frame is passed through the Windows clipboard and pasted onto Paint's canvas. A low-level keyboard hook captures and swallows game inputs while Paint is in the foreground, and sound effects come from the game engine.

A glance at the code shows Russinovich was more than happy to use Claude to whip it up. In a LinkedIn post, he said: "I've been using Fable 5 on serious research projects and find it a noticeable improvement over Opus 4.8." Using Microsoft Paint as a display for Doom is not, however, a serious research project, as Russinovich acknowledged. "I've also been having fun with it on frivolous ones," he added, so here we are.
"Paint renders the game but does not compute it," said Russinovich. "Paint computes nothing. Paint has never computed anything. That's the joke."
AI

Microsoft Tells Engineers 'Tokenmaxxing Is Not What We Are Optimizing For' 57

Microsoft is introducing AI token budgets for employees, making the cheaper GPT-5.6 its default internal model and telling engineers to focus on business results rather than maximizing AI usage. 404 Media reports: "As we accelerate our use of GitHub Copilot to deliver on our goals, we all need to be aware of how we consume tokens," Jay Parikh, an executive vice president at Microsoft said in an email to Microsoft employees. GitHub is owned by Microsoft, and GitHub Copilot is an AI coding tool. "Tokenmaxxing is not what we are optimizing for. I want all of us focused on maximizing outcomes that move the needle for our customers and our business." "As such, we are updating our internal guidance and managing token spend with the same discipline we apply to every other critical resource," Parikh said in the email.

Parikh's email says that in an effort to "get greater value from our token investment" Microsoft is making OpenAI GPT-5.6, which is cheaper to use than other models, the default model for internal use. His email also links to updated internal Copilot guidelines stating that, as of July 2026, Microsoft divisions will have an "AI token budget target," and that employees can track their individual AI spending. "While there is no target spend value being shared at this time. The data shows that many engineers spend in the range of hundreds of dollars a month to a few thousand dollars in tokens," the guidelines say. They also say that some decisions may place further restrictions as they monitor spend.

[...] Parikh's email said Microsoft will keep learning and adjusting its AI policies as models and products evolve, and stressed that he doesn't want to slow down the company's progress towards becoming "AI-first." "We are not optimizing for fewer tokens," he said. "We are optimizing for more impact per token.
Privacy

Russia-Linked 'Midnight Blizzard' Group Hijacks Hotel Wi-Fi With CaptiveCrunch (itnews.com.au) 31

A Russia-linked group tracked as Midnight Blizzard has compromised hotel and conference Wi-Fi portals worldwide, redirecting guests to phishing pages and fake software updates that steal credentials, session tokens, and other sensitive data. Microsoft says the campaign, dubbed CaptiveCrunch, "targets traveling employees generally rather than a particular sector," reports iTNews. From the report: Midnight Blizzard, tracked internally by Microsoft under its earlier codename NOBELIUM, is attributed by the US and UK governments to Russia's SVR (Sluzhba Vneshney Razvedki) foreign intelligence service. Microsoft's technical analysis said compromises occurred in "several countries" without naming them, and it did not give a total number of affected venues, organisations or individuals.

A related investigation published earlier in July by security firm ReliaQuest, and which Microsoft cited in its report, found compromised captive portal gateways across multiple United States cities as well as in India and Saudi Arabia, mostly at hotels. ReliaQuest said the traffic it observed came from organizations across financial services, professional services, legal, health care, energy and retail, suggesting the campaign targets traveling employees generally rather than a particular sector.

[...] Where attackers gained a foothold, Microsoft said they deployed two main tools: CornFlake, a Windows remote access trojan (RAT) written in Go capable of keylogging, screenshot and webcam capture, audio surveillance and credential and session token theft. They would also drop ChocoShell, an in-memory PowerShell infostealer targeting browser cookies, saved passwords, Microsoft 365 single sign-on (SSO) tokens and wi-fi credentials. Microsoft also said it has seen indications the attackers might be targeting Android devices with similar prompts urging victims to download and install an APK file.

XBox (Games)

Microsoft Is Bringing Xbox 360 Games to PC (theverge.com) 21

Microsoft reportedly plans to let developers bring Xbox 360 games to PC and next-generation Xbox devices, with a gradual rollout expected between 2027 and 2028. A separate disc-to-digital program would also give players transferable digital licenses tied to their physical Xbox discs, preserving the ability to resell or trade them. The Verge reports: With 360 games, developers can opt into making them backward compatible, and they will have control over things like a game's price and if it's available on Game Pass. The feature is expected to have a "gradual" rollout between 2027 and 2028 "across next-gen devices." The "full launch" of original Xbox games on PC is also set for October 2026; the initial program announced in July included just four games.

The document also includes details about a way for players to get a digital version of a game that they already own on a physical disc, which The Verge's Tom Warren reported on in July. The document says that if a player puts an Xbox One or Series game on disc into an Xbox One or Series X console with a disc drive, they'll be granted a digital license that's bound to "that disc and the player's account." The license will stay with a player across Xbox devices, but if the disc "changes hands," the license will transfer to the new person. That should mean that gamers can still trade and sell discs; once the original owner of a disc does so, they can't play the digital version they got from that disc anymore.

According to the document, a public beta for the disc-to-digital program was set for July with general availability set for August. We understand Microsoft had originally planned to test its disc-to-digital program with Xbox Insiders in July, but the beta was delayed. It's unclear if the timeline of August general availability is still accurate.

AI

Microsoft CEO Touts His Own DIY AI Project To Wall Street and His 20 Million Followers 38

theodp writes: During Microsoft's 2026Q4 earnings call, CEO Microsoft Satya Nadella took time to tout a dashboard he personally created using AI from a Morgan Stanley analyst's PDF research report, which suggested a rosy payback for the so-called MAG7's ('Magnificent 7' companies) massive capital expenditures on AI (to which Nadella later added a "not financial advice" disclaimer). "It would be fun for you, Adam. I think one of your colleagues put out an ROIC [Return on Invested Capital] document. I took that document to Copilot, which is a PDF, and I said, 'Build me a new Power BI dashboard, essentially.' But here is the thing. It built a rich semantic model that went into my Fabric with OneLake that brought all the data in from the external sources. In fact, it was current with all the SEC filings of all the MAG7. And then on top of that, the repo itself is in GitHub, but the artifact is sitting in my Copilot as a site. That, to me, is a classic example of an enterprise-wide workflow. I, as a knowledge worker, could go create a dashboard. The data engineer can go to Fabric and find the artifact. The professional developer can go to the repo and find it in GitHub. And by the way, it's all registered with Agent 365. That's a little bit of what Amy is describing as the coming together of a new way to work, even while at the same time, bringing IT, security and manageability of it."

After Nadella's show-and-tell drew an underwhelming response during the call ("That's very helpful. Thank you." said the Morgan Stanley analyst whose team's work Nadella scraped with AI), Nadella turned to social media with posts on LinkedIn (12M followers) and Twitter/X (8M followers) to make the case for why his DIY project was such a brilliant demonstration of how AI enables governance, controls, security, development, testing, deployment, maintenance, data analysis/modeling, visualization, usability, and value. "Some more detail on the ROIC Intelligence App I built yesterday and mentioned on today's earnings call," Nadella wrote on LinkedIn. "I took the PDF that Brian Nowak at Morgan Stanley put together for Hyperscale ROIC this week and used Copilot code (coming in our new superapp) with a single prompt + skill (/drill-me) to create the plan, then used autopilot in auto to create the full app (with history, lookups, scenarios, what-ifs, etc). And /rubber-duck to test. And the best part is that all the artifacts are in my enterprise environment. My app is in Copilot, my code is in GitHub Enterprise; all my data pipelines/lake/semantic models are in Fabric. And everything is under Agent 365 IT/Sec/FinOps control! So this is not about Tokenmaxxing or vibe coding. Every step of the way the rails are engineered to create value, making everything a long-term reusable asset, with governance/security, and cost controls. This is the full system to drive business value. Disclosures: This is all pulled from public sources, and for illustrative purposes only...not financial advice! :) Here is the app and architecture..."

Not unexpectedly, the accompanying screenshot of a splash page for the BI app and a buzzword-laden complicated architecture diagram drew universal praise from LinkedIn fans, but also a few barbs from less-than-impressed commenters on Nadella's Twitter/X post, some of whom suggested Nadella's project might even represent a jump-the-shark moment for AI mania. "That he doesn't see whats wrong with saying 'My app is in Copilot, my code is in GitHub Enterprise; all my data pipelines/lake/semantic models are in Fabric' is exactly why MS is failing at AI,'" replied @PassingPixels on X/Twitter. "Dude is having to run 5 different systems to emulate babies first vibe code." @zigmund_ignatov added, "Why do we call glorified slide show an app?" @Mathupiriyan quipped, "Looks like Copilot just turned a PDF into a profit crystal ball." Unimpressed, @Markusndnb remarked, "So you created a web page using tons of proprietary MS tools." And @FishyAccounting called on Nadella to show-his-work, saying "Post the prompt or it didn't happen." (btw, Microsoft President Brad Smith similarly declined to provide the prompt for his own self-described amazing AI DIY reporting project that he touted at Microsoft's Shareholder Meeting last December).

So, does Nadella's self-promoted AI reworking of someone else's PDF research report strike you as an amazing example of everything that's good about AI, or does it conjure up memories of The Emperor's New Clothes?
AI

'AI's Decimation of Call Center Jobs Has Begun' (yahoo.com) 148

"AI's decimation of call center jobs has begun," reports Bloomberg: Companies including the Commonwealth Bank of Australia, Microsoft Corp., Uber Technologies Inc. and Hyatt Hotels Corp. are using automated chat and phone systems to handle work that previously required humans. In some cases, they've already wiped out sizable chunks of their customer service operations, together representing thousands of workers.

The specter of automation has long loomed over the call center industry, which employs millions worldwide from the U,S, to India to the Philippines. But until recently, generative artificial intelligence wasn't good enough to move the needle. Now, AI advancements — and pressure on executives to show they're embracing the new technology — have prompted corporations to deploy the tools more widely. Customer service employment in the U.S. is declining and will likely continue to do so as more tasks are automated, Forrester analyst Kate Leggett wrote in a report earlier this year. While it's impossible to determine the future job losses, she estimated that almost half of customer service roles will be affected by 2030.

Globally, the steepest job cuts are expected to hit countries like the Philippines, where many Western companies have outsourced their most easily automated work. Salespeople at multiple tech companies told Bloomberg that they routinely pitch call center AI tools as a way of lowering labor costs, undercutting a common industry claim that AI is primarily a way to help workers become more productive rather than kill their jobs... Commonwealth Bank of Australia, the nation's largest lender, has shed hundreds of workers from its chat support line as it wove AI into the system, according to people familiar with the work. This amounted to tens of millions of dollars in savings per year, one of the people said...

Microsoft is both one of the largest vendors and adopters of customer service automation tools. This has helped the software giant trim its customer service workforce — a mix of contractors and full-time staff — from about 50,000 to 40,000 in recent years, according to a person familiar with the operations. "If something happened with little Johnny's Xbox in the middle of the night, we can now solve that with AI," Judson Althoff, who runs Microsoft's sales and service operations, said in an interview. Althoff said in April that AI is saving the company about $750 million per year in customer service costs. More complex problems still require human support, but the company is constantly expanding what can be fixed automatically, he said in the interview.

Two examples from the article:
  • Last year Hyatt fired 30% of its in-house customer support staff for the Americas, according the hotel-industry news site Hotel Dive.
  • Last week Bloomberg reported Uber had cut 10% of its customer service jobs as part of effort to "embrace artificial intelligence," according to the article. "Today, Uber pushes users to submit support requests through their apps, where they're met with an AI chatbot."

Cloud

IT Teams are Spending 11 Hours a Week on Cloud Connectivity Problems (computerweekly.com) 20

Researchers found enterprises are spending time troubleshooting cloud connectivity due to increased AI workloads, reports Computer Weekly. More than 400 IT and infrastructure decision-makers (US and UK) were surveyed for internet/cloud/AI exchange operator DE-CIX by market researchers Censuswide. But despite 96% of respondents claiming their enterprise networks are ready for cloud/AI loads, the average IT team still spends more than 11 hours each week resolving cloud connectivity problems: Other leading concerns included downtime or reliability issues (26%), latency or slow performance (28%), and security vulnerabilities/DDoS attacks (27%). Cost of connectivity, staff expertise and lack of visibility/control over data flows were also cited as major challenges... As a result, as indicated in the study, many businesses are now turning to private interconnection, which enables enterprises to connect directly to cloud providers over dedicated infrastructure rather than routing traffic across the public Internet. Designed to deliver lower latency, greater resilience, enhanced security and more predictable performance, private interconnection has become an increasingly important way of supporting modern cloud and AI workloads. Specifically, the data showed that 61% of companies are already using private connectivity to clouds, while another 31% are actively considering it... [And 71% of enterprises with 1000 or more employees]

Only 8.62% of the smaller companies were spending 21 to 40 hours per week dealing with connectivity issues, while just 2.53% of the largest companies in the sample do. Summing up these findings, DE-CIX said that together they suggest direct interconnection is rapidly becoming a core component of enterprise cloud and AI infrastructure and a competitive advantage for companies, though optimising interconnection strategies clearly remains a pressing challenge for small and medium-sized enterprises... "Every AI application depends on data moving quickly, securely and predictably between users, clouds and AI infrastructure. Our research suggests that far too many enterprises are still spending valuable time trying to maintain that kind of connectivity, with more than a third spending between 11 and 20 hours per week, and just under one in 10 spending between 21 to 40 hours per week. This confirms what we already knew — that that network architecture can make or break AI adoption."

Elsewhere The Register reports that cloud infrastructure services "grew at their fastest for eight years during the second quarter of 2026, thanks to the AI craze and continued demand for flexible and scalable IT infrastructure." According to the latest figures from Synergy Research, enterprise spending on cloud infrastructure passed $143 billion in Q2, a year-on-year growth rate of 43 percent. This followed 11 successive quarters of increasing growth rates, during which the market has now doubled in size... "AI has, of course, driven most of that incremental growth, and we now see year-on-year growth rates of 165 percent for AI-specific cloud services...." And the top three global players continue to dominate the market, with Amazon Web Services (AWS), Microsoft Azure and Google Cloud together accounting for 67 percent of all the cloud revenue during the quarter. That percentage has increased since the third quarter of last year, when the triumvirate made up 63 percent of enterprise cloud infra spending.
Open Source

Is There a Way to Promote Open Document Formats Instead of 'MS Office' Format? (theregister.com) 84

The Register looks at exactly why "It is practically impossible to move any non-trivial Word document out of MS Office to a non-MS suite and back again without it being more trouble than it's worth." OOXML, developed by Microsoft and first standardized by Ecma in 2006, became the ISO/IEC 29500 standard in 2008 after a grueling and adversarial process. Microsoft pursued standardization because it has always been a standards-led organization dedicated to maximizing the options for its customers. Or because it had to at gunpoint, while vowing silently to follow the letter of the law but stymie its intent. You decide... The Document Foundation (TDF) which spends its days worrying about such things, reports that Microsoft has effectively broken the standard by sticking with a transitional version as its default rather than the cleaner Strict variant. The result is that what Microsoft software renders is what Microsoft wants to render, despite nominal compliance...

What we need is a test suite that can take any OOXML engine and test its compliance against what Microsoft is actually doing. That means the tooling wrapped around the spec has to account for proprietary dependencies that get smuggled in, such as fonts. It also means actively and continuously tracking the ground truth of Microsoft's evolving products and services. It doesn't need to be perfect, but it absolutely needs to be good enough. Compliant engines have to become good enough for a critical mass of users to coalesce around them.

In an earlier article The Document Foundation reminded all software users that they have a choice. "When an institution sends a letter formatted with a proprietary font, embedded in a proprietary format, produced by proprietary software, it is not communicating information but perpetuating a dependency."

"Digital sovereignty begins with the recognition that this is a choice: the file format is a choice, the font on the page is a choice, and the software is a choice."
AI

Is Big Tech's AI Gamble Starting to Look Riskier? (msn.com) 75

The Washington Post looks at giant tech companies "feeding every available dollar into the cash-incinerating maw of AI machines." They warn "Tech superstars that once had oodles of cash left over at the end of each year are now flipping into the red..." [While optimists expect] huge corporate profits and a society-wide boost to wealth and well-being... questions about that AI vision are now growing more urgent: When, if ever, will this payoff arrive? And what will the fallout be for Americans if the titanic investment doesn't quickly deliver? "This AI thing better work out because if it doesn't ... we're going to have a problem," said Torsten Slok, chief economist at investment firm Apollo Global Management. AI costs and doubts are spreading. The U.S. stock market has swooned this summer over fear of the AI bubble going bust...

The AI gamble sweeping up American fortunes is led by tech companies splurging on hulking data centers packed with computer chips and equipment needed to develop sophisticated AI models and deliver them to customers. In investor calls in the past week, Google, Microsoft, Meta and Amazon pointed to soaring AI-related sales and business deals. Advertisers are using the technology to tailor marketing pitches and corporations and start-ups are buying access to chatbots and other AI software to boost productivity... But this spending can only continue if AI generates an even larger avalanche of new revenue to pay for it all. Financial results released over the past week show that the AI titans' mammoth costs are largely swamping the sales boost from the technology. At Google, for every dollar of cash its business generated in the past three months, $1.15 went out the door to pay for AI computer chips and equipment, land for AI data centers and other big-ticket purchases. The company is covering the difference partly by borrowing money and selling more of its stock. Next year, five leading AI companies — Google, Amazon, Microsoft, Meta and Oracle — are projected to have negative free cash flow, which measures the cash left over after paying expenses and AI infrastructure costs. The figures, based on investment analyst projections compiled by S&P Global Market Intelligence, show a stunning reversal for what have been some of the world's most cash-generating corporations...

The companies remain profitable by standard financial accounting measures that spread out the costs of their AI infrastructure spending over many years... Pessimists see a bet so gargantuan that it cannot possibly pay off. The pessimists are growing louder. The Bank for International Settlements, a typically measured institution in Switzerland that advises government bankers around the world, recently warned there was risk of "economy-wide recessions" if the AI boom falters. That could mean pain for workers and communities across the United States. "I'm not saying AI is going to go away, it's just not clear to me these guys are going to make money on it," said Christopher Wood, global head of equity strategy at investment bank Jefferies who has correctly predictedpast financial bubbles.

Microsoft

Microsoft's $450 Billion Jump Is Biggest In Stock Market History (bloomberg.com) 44

Microsoft shares surged as much as 17% after reporting 43% growth in Azure revenue, putting the company on track to add a record $490 billion in market value in a single day. Bloomberg notes that it "would eclipse Nvidia's $440 billion addition, following President Donald Trump's announcement of a 90-day tariff pause last year, as the biggest ever." From the report: The nearly $500 billion jump is larger than the market capitalization of roughly 96% of S&P 500 stocks, data compiled by Bloomberg show. It's also bigger than the combined value of the benchmark's 44 smallest members, which includes companies like Domino's Pizza Inc., Clorox Co. and Hasbro Inc.

Microsoft's one-day add in value also dwarfs many of the world's other equity markets. South Africa, Turkey, Finland and Vietnam all have total stock market values that are less than what the software maker is set to add on Thursday.

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