Programming

GitHub Announces 'Agent HQ', Letting Copilot Subscribers Run and Manage Coding Agents from Multiple Vendors (venturebeat.com) 9

"AI isn't just a tool anymore; it's an integral part of the development experience," argues GitHub's blog. So "Agents shouldn't be bolted on. They should work the way you already work..."

So this week GitHub announced "Agent HQ," which CNBC describes as a "mission control" interface "that will allow software developers to manage coding agents from multiple vendors on a single platform." Developers have a range of new capabilities at their fingertips because of these agents, but it can require a lot of effort to keep track of them all individually, said GitHub COO Kyle Daigle. Developers will now be able to manage agents from GitHub, OpenAI, Google, Anthropic, xAI and Cognition in one place with Agent HQ. "We want to bring a little bit of order to the chaos of innovation," Daigle told CNBC in an interview. "With so many different agents, there's so many different ways of kicking off these asynchronous tasks, and so our big opportunity here is to bring this all together." Agent HQ users will be able to access a command center where they can assign, steer and monitor the work of multiple agents...

The third-party agents will begin rolling out to GitHub Copilot subscribers in the coming months, but Copilot Pro+ users will be able to access OpenAI Codex in VS Code Insiders this week, the company said.

"We're into this wave two era," GitHub's COO Mario Rodriguez told VentureBeat, an era that's "going to be multimodal, it's going to be agentic and it's going to have these new experiences that will feel AI native...."

Or, as VentureBeat sees it, GitHub "is positioning itself as the essential orchestration layer beneath them all..." Just as the company transformed Git, pull requests and CI/CD into collaborative workflows, it's now trying to do the same with a fragmented AI coding landscape...

The technical architecture addresses a critical enterprise concern: Security. Unlike standalone agent implementations where users must grant broad repository access, GitHub's Agent HQ implements granular controls at the platform level... Agents operating through Agent HQ can only commit to designated branches. They run within sandboxed GitHub Actions environments with firewall protections. They operate under strict identity controls. [GitHub COO] Rodriguez explained that even if an agent goes rogue, the firewall prevents it from accessing external networks or exfiltrating data unless those protections are explicitly disabled.

Beyond managing third-party agents, GitHub is introducing two technical capabilities that set Agent HQ apart from alternative approaches like Cursor's standalone editor or Anthropic's Claude integration. Custom agents via AGENTS.md files: Enterprises can now create source-controlled configuration files that define specific rules, tools and guardrails for how Copilot behaves. For example, a company could specify "prefer this logger" or "use table-driven tests for all handlers." This permanently encodes organizational standards without requiring developers to re-prompt every time... Native Model Context Protocol (MCP) support: VS Code now includes a GitHub MCP Registry. Developers can discover, install and enable MCP servers with a single click. They can then create custom agents that combine these tools with specific system prompts. This positions GitHub as the integration point between the emerging MCP ecosystem and actual developer workflows. MCP, introduced by Anthropic but rapidly gaining industry support, is becoming a de facto standard for agent-to-tool communication. By supporting the full specification, GitHub can orchestrate agents that need access to external services without each agent implementing its own integration logic.

GitHub is also shipping new capabilities within VS Code itself. Plan Mode allows developers to collaborate with Copilot on building step-by-step project approaches. The AI asks clarifying questions before any code is written. Once approved, the plan can be executed either locally in VS Code or by cloud-based agents. The feature addresses a common failure mode in AI coding: Beginning implementation before requirements are fully understood. By forcing an explicit planning phase, GitHub aims to reduce wasted effort and improve output quality.

More significantly, GitHub's code review feature is becoming agentic. The new implementation will use GitHub's CodeQL engine, which previously largely focused on security vulnerabilities to identify bugs and maintainability issues. The code review agent will automatically scan agent-generated pull requests before human review. This creates a two-stage quality gate.

"Don't let this little bit of news float past you like all those self-satisfied marketing pitches we semi-hear and ignore," writes ZDNet: If it works and remains reliable, this is actually a very big deal... Tech companies, especially the giant ones, often like to talk "open" but then do their level best to engineer lock-in to their solution and their solution alone. Sure, most of them offer some sort of export tool, but the barrier to moving from one tool to another is often huge... [T]he idea that you can continue to use your favorite agent or agents in GitHub, fully integrated into the GitHub tool path, is powerful. It means there's a chance developers might not have to suffer the walled garden effect that so many companies have strived for to lock in their customers.
AI

Security Holes Found in OpenAI's ChatGPT Atlas Browser (and Perplexity's Comet) (scworld.com) 20

The address bar/ChatGPT input window in OpenAI's browser ChatGPT Atlas "could be targeted for prompt injection using malicious instructions disguised as links," reports SC World, citing a report from AI/agent security platform NeuralTrust: NeuralTrust found that a malformed URL could be crafted to include a prompt that is treated as plain text by the browser, passing the prompt on to the LLM. A malformation, such as an extra space after the first slash following "https:" prevents the browser from recognizing the link as a website to visit. Rather than triggering a web search, as is common when plain text is submitted to a browser's address bar, ChatGPT Atlas treats plain text as ChatGPT prompts by default.

An unsuspecting user could potentially be tricked into copying and pasting a malformed link, believing they will be sent to a legitimate webpage. An attacker could plant the link behind a "copy link" button so that the user might not notice the suspicious text at the end of the link until after it is pasted and submitted. These prompt injections could potentially be used to instruct ChatGPT to open a new tab to a malicious website such as a phishing site, or to tell ChatGPT to take harmful actions in the user's integrated applications or logged-in sites like Google Drive, NeuralTrust said.

Last month browser security platform LayerX also described how malicious prompts could be hidden in URLs (as a parameter) for Perplexity's browser Comet. And last week SquareX Labs demonstrated that a malicious browser extension could spoof Comet's AI sidebar feature and have since replicated the proof-of-concept (PoC) attack on Atlas.

But another new vulnerability in ChatGPT Atlas "could allow malicious actors to inject nefarious instructions into the artificial intelligence (AI)-powered assistant's memory and run arbitrary code," reports The Hacker News, citing a report from browser security platform LayerX: "This exploit can allow attackers to infect systems with malicious code, grant themselves access privileges, or deploy malware," LayerX Security Co-Founder and CEO, Or Eshed, said in a report shared with The Hacker News. The attack, at its core, leverages a cross-site request forgery (CSRF) flaw that could be exploited to inject malicious instructions into ChatGPT's persistent memory. The corrupted memory can then persist across devices and sessions, permitting an attacker to conduct various actions, including seizing control of a user's account, browser, or connected systems, when a logged-in user attempts to use ChatGPT for legitimate purposes....

"What makes this exploit uniquely dangerous is that it targets the AI's persistent memory, not just the browser session," Michelle Levy, head of security research at LayerX Security, said. "By chaining a standard CSRF to a memory write, an attacker can invisibly plant instructions that survive across devices, sessions, and even different browsers. In our tests, once ChatGPT's memory was tainted, subsequent 'normal' prompts could trigger code fetches, privilege escalations, or data exfiltration without tripping meaningful safeguards...."

LayerX said the problem is exacerbated by ChatGPT Atlas' lack of robust anti-phishing controls, the browser security company said, adding it leaves users up to 90% more exposed than traditional browsers like Google Chrome or Microsoft Edge. In tests against over 100 in-the-wild web vulnerabilities and phishing attacks, Edge managed to stop 53% of them, followed by Google Chrome at 47% and Dia at 46%. In contrast, Perplexity's Comet and ChatGPT Atlas stopped only 7% and 5.8% of malicious web pages.

From The Conversation: Sandboxing is a security approach designed to keep websites isolated and prevent malicious code from accessing data from other tabs. The modern web depends on this separation. But in Atlas, the AI agent isn't malicious code — it's a trusted user with permission to see and act across all sites. This undermines the core principle of browser isolation.
Thanks to Slashdot reader spatwei for suggesting the topic.
XBox (Games)

The Numbers Show Xbox's Current Plan Isn't Working (gizmodo.com) 49

An anonymous reader quotes a report from Gizmodo: It's time for Xbox to eat some humble pie and perform some real soul-searching. Microsoft released its latest quarterly earnings report and proved the worst of our fears about its gaming brand. Not only are Xbox hardware sales down significantly, but the brand itself is barely treading water. Gamers are voicing their displeasure with their wallets, but Microsoft's top brass is still only thinking about the margins. Microsoft was more keen to promote the scale of its cloud and AI services revenue -- which was up 28% year over year -- than talk about its beleaguered gaming brand. The company's overall gaming revenue fell by 2% compared to the same time last year. This was precipitated by a "decline in Xbox hardware," which was down by 22% following a steady decline quarter after quarter. Its first-party games and its Game Pass subscription were doing better, though the overall growth was only up by 1%, and even that was driven by the "better-than-expected performance" of third-party games. You can give credit to titles like Clair Obscur: Expedition 33 for why Xbox isn't in an even deeper hole than it is now.

The tech giant has no expectation that its Xbox brand will start making more money anytime soon. In its earnings call with investors, Microsoft Chief Financial Officer Amy Hood said the company expects Xbox will continue to decline "in the low to mid-single digits" for the following quarter. That's mostly due to the lack of landmark first-party titles. Just this month, Xbox released Ninja Gaiden 4, The Outer Worlds 2, and Double Fine's The Keeper. Xbox also made a huge marketing push for its first handheld, made in partnership with Asus, the ROG Xbox Ally and Ally X. In any other year, this would be a big month for any gaming company. The dour outlook comes after months of bad news. After two subsequent price hikes, Xbox Series S and Series X consoles now cost between $100 to $150 more than they did at launch five years ago. Microsoft also pushed prices of its Game Pass Ultimate subscription tier from $20 to $30 per month. A full-year's subscription would now demand $360.
In a separate article, Gizmodo reviews Microsoft's new ROG Xbox Ally X handheld, which "offers a better experience overall" than the "other small-scale Windows PC gaming devices released this year." However, "it's still nowhere close to what you truly want from a console."
EU

Austria's Ministry of Economy Has Migrated To a Nextcloud Platform In Shift Away From US Tech (zdnet.com) 10

An anonymous reader quotes a report from ZDNet: Even before Azure had a global failure this week, Austria's Ministry of Economy had taken a decisive step toward digital sovereignty. The Ministry achieved this status by migrating 1,200 employees to a Nextcloud-based cloud and collaboration platform hosted on Austrian-based infrastructure. This shift away from proprietary, foreign-owned cloud services, such as Microsoft 365, to an open-source, European-based cloud service aligns with a growing trend among European governments and agencies. They want control over sensitive data and to declare their independence from US-based tech providers.

European companies are encouraging this trend. Many of them have joined forces in the newly created non-profit foundation, the EuroStack Initiative. This foundation's goal is " to organize action, not just talk, around the pillars of the initiative: Buy European, Sell European, Fund European." What's the motive behind these moves away from proprietary tech? Well, in Austria's case, Florian Zinnagl, CISO of the Ministry of Economy, Energy, and Tourism (BMWET), explained, "We carry responsibility for a large amount of sensitive data -- from employees, companies, and citizens. As a public institution, we take this responsibility very seriously. That's why we view it critically to rely on cloud solutions from non-European corporations for processing this information."

Austria's move and motivation echo similar efforts in Germany, Denmark, and other EU states and agencies. The organizations include the German state of Schleswig-Holstein, which abandoned Exchange and Outlook for open-source programs. Other agencies that have taken the same path away from Microsoft include the Austrian military, Danish government organizations, and the French city of Lyon. All of these organizations aim to keep data storage and processing within national or European borders to enhance security, comply with privacy laws such as the EU's General Data Protection Regulation (GDPR), and mitigate risks from potential commercial and foreign government surveillance.

Youtube

YouTube's AI Moderator Pulls Windows 11 Workaround Videos, Calls Them Dangerous (theregister.com) 51

An anonymous reader shares a report: Is installing Windows 11 with a local account or on unsupported hardware harmful or dangerous? YouTube's AI moderation system seems to think so, as it has started pulling videos that show users how to sidestep Microsoft's setup restrictions.

Tech YouTuber Rich White, aka CyberCPU Tech, was the first to go public about the issue on October 26, when he posted a video reporting the removal of a how-to he published on installing Windows 11 25H2 with a local account instead of a Microsoft account. In the video, White expressed concern that YouTube's automated flagging process may be the root of the problem, as he found it hard to believe that "creating a local account in Windows 11 could lead to serious harm or even death," as YouTube reportedly alleged when it removed the video.

When he appealed, White said that YouTube denied the request within 10 to 20 minutes, early on a Sunday morning, which led him to speculate that there wasn't a human in the loop when the request was shut down. That wasn't his only video removed, either. The next day, White uploaded his video for this week on installing Windows 11 25H2 on unsupported hardware, which was removed hours after being posted. YouTube justified the removal on similar grounds. [...] At least two other YouTubers - Britec09 and Hrutkay Mods - have released videos alleging much of the same.

Windows

Windows 11 Tests Bluetooth Audio Sharing That Connects Two Headsets at Once (theverge.com) 26

Microsoft is bringing shared audio to Windows 11, allowing you to stream audio across two pairs of wireless headphones, speakers, earbuds, or hearing aids. From a report: The feature is built using the Bluetooth Low Energy (LE) audio codec, and it's rolling out in preview to Windows 11 Insiders in the Dev and Beta channels. Shared audio comes in handy if you're watching a movie on a laptop with your friend or family member, or just want to show them new music that you can both stream inside your own wireless headsets. You can use shared audio by connecting Bluetooth LE-supported devices to your Windows 11 PC and then selecting the Shared audio (preview) button in your quick settings menu. Microsoft introduced an LE Audio feature on Windows 11 in August, enabling higher audio quality while using a wireless headset in a game or call.
Power

The World's Secret Electricity Superusers Revealed (bloomberg.com) 35

An anonymous reader shares a report: The rush to secure electricity has intensified as tech companies look to spend trillions of dollars building data centers. There's an industry that consumes even more power than many tech giants, and it has largely escaped the same scrutiny: suppliers of industrial gases.

Everyday items like toothpaste and life-saving treatments like MRIs are among the countless parts of modern life that hinge on access to gases such as nitrogen, oxygen and helium. Producing and transporting these gases to industrial facilities and hospitals is a highly energy-intensive process. Three companies -- Linde, Air Liquide and Air Products and Chemicals -- control 70% of the $120 billion global market for industrial gases. Their initiatives to rein in electricity use or switch to renewables aren't enough to rapidly cut carbon emissions, according to a new report from the campaign group Action Speaks Louder.

"The scale of the sector's greenhouse gas emissions and electricity use is staggering," said George Harding-Rolls, the group's head of campaigns and one of the authors of the report. Linde's electricity use in 2024 exceeded that of Alphabet's Google and Samsung Electronics as well as oil giant TotalEnergies, while the power use of Air Liquide and Air Products was comparable to that of Shell and Microsoft. Yet unlike fossil fuel and tech companies, these industrial gas companies are far from household names because their customers are the world's largest chemicals, steel and oil companies rather than average consumers.

The industry relies on air-separation units, which use giant compressors to turn air into liquid and then distill it into its many components. These machines are responsible for much of the industry's electricity demand, and their use alone is responsible for 2% of carbon dioxide emissions in China and the US, the world's two largest polluters.

Cellphones

Someone Snuck Into a Cellebrite Microsoft Teams Call and Leaked Phone Unlocking Details (404media.co) 56

An anonymous reader quotes a report from 404 Media: Someone recently managed to get on a Microsoft Teams call with representatives from phone hacking company Cellebrite, and then leaked a screenshot of the company's capabilities against many Google Pixel phones, according to a forum post about the leak and 404 Media's review of the material. The leak follows others obtained and verified by 404 Media over the last 18 months. Those leaks impacted both Cellebrite and its competitor Grayshift, now owned by Magnet Forensics. Both companies constantly hunt for techniques to unlock phones law enforcement have physical access to.

"You can Teams meeting with them. They tell everything. Still cannot extract esim on Pixel. Ask anything," a user called rogueFed wrote on the GrapheneOS forum on Wednesday, speaking about what they learned about Cellebrite capabilities. GrapheneOS is a security- and privacy-focused Android-based operating system. rogueFed then posted two screenshots of the Microsoft Teams call. The first was a Cellebrite Support Matrix, which lays out whether the company's tech can, or can't, unlock certain phones and under what conditions. The second screenshot was of a Cellebrite employee. According to another of rogueFed's posts, the meeting took place in October. The meeting appears to have been a sales call. The employee is a "pre sales expert," according to a profile available online.

The Support Matrix is focused on modern Google Pixel devices, including the Pixel 9 series. The screenshot does not include details on the Pixel 10, which is Google's latest device. It discusses Cellebrite's capabilities regarding 'before first unlock', or BFU, when a piece of phone unlocking tech tries to open a device before someone has typed in the phone's passcode for the first time since being turned on. It also shows Cellebrite's capabilities against after first unlock, or AFU, devices. The Support Matrix also shows Cellebrite's capabilities against Pixel devices running GrapheneOS, with some differences between phones running that operating system and stock Android. Cellebrite does support, for example, Pixel 9 devices BFU. Meanwhile the screenshot indicates Cellebrite cannot unlock Pixel 9 devices running GrapheneOS BFU. In their forum post, rogueFed wrote that the "meeting focused specific on GrapheneOS bypass capability." They added "very fresh info more coming."

Businesses

OpenAI Eyes $1 Trillion IPO 42

OpenAI is reportedly preparing for a massive IPO that could value the company at up to $1 trillion. It follows a recent corporate restructuring that loosened its dependence on Microsoft and aligned its nonprofit foundation with financial success. Reuters reports: OpenAI is considering filing with securities regulators as soon as the second half of 2026, some of the people said. In preliminary discussions, the company has looked at raising $60 billion at the low end and likely more, the people said. They cautioned that talks are early and plans -- including the figures and timing - could change depending on business growth and market conditions. Chief Financial Officer Sarah Friar has told some associates the company is aiming for a 2027 listing, the people said. But some advisers predict it could come even sooner, around late 2026.

[...] An IPO would open the door to more efficient capital raising and enable larger acquisitions using public stock, helping to finance CEO Sam Altman's plans to pour trillions of dollars into AI infrastructure, according to people familiar with the company's thinking. With an annualized revenue run rate expected to reach about $20 billion by year-end, losses are also mounting inside the $500 billion company, the people said. During a livestream on Tuesday, Altman addressed the possibility of going public. "I think it's fair to say it is the most likely path for us, given the capital needs that we'll have," he said.
Open Source

International Criminal Court To Ditch Microsoft Office For European Open Source Alternative (euractiv.com) 55

An anonymous reader shares a report: The International Criminal Court will switch its internal work environment away from Microsoft Office to Open Desk, a European open source alternative, the institution confirmed to Euractiv. The switch comes amid rising concerns about public bodies being reliant on US tech companies to run their services, which have stepped up sharply since the start of US President Donald Trump's second administration.

For the ICC, such concerns are not abstract: Trump has repeatedly lashed out at the court and slapped sanctions on its chief prosecutor, Karim Khan. Earlier this year, the AP also reported that Microsoft had cancelled Khan's email account, a claim the company denies. "We value our relationship with the ICC as a customer and are convinced that nothing impedes our ability to continue providing services to the ICC in the future," a Microsoft spokesperson told Euractiv.

Windows

Windows is the Problem With Windows Handhelds (theverge.com) 71

Microsoft shipped its first Xbox handheld nearly two weeks ago. The $600 white Xbox Ally cannot reliably sleep, wake, or hold a charge while asleep. Neither Microsoft nor Asus would admit there's a problem or offer a timeline to fix it after repeated requests by The Verge. Asus said it needs more time to test.

Installing Bazzite, a Linux-based operating system, solves the problems, the publication reports. The same hardware runs games up to 30% faster than Windows and beats the Steam Deck in all but one benchmark. Steam runs more responsively without Windows bloat. The device can be used like a Nintendo Switch, pausing games with the power button and resuming hours or days later. Bazzite initially had sleep issues but fixed them two days after programmer Antheas Kapenekakis obtained the hardware and consulted with two AMD contacts. The black Xbox Ally X, which doesn't have as many sleep issues, gets a similar speed boost with Bazzite.

Two Xbox Ally units tested on Windows repeatedly woke themselves at random intervals. One lost 10% battery after 12 hours of supposed sleep, the other 23%. After another 12 hours, both had only 30% battery remaining. One tried to apply a Windows Update while asleep. Both units refused to wake from sleep at times and required hard resets. Many users have reported similar issues on Reddit with both Xbox Ally versions.

Further reading: Microsoft's Next Xbox Will Run Full Windows and Eliminate Multiplayer Paywall, Report Says.
Microsoft

Microsoft CEO Nadella Says Gaming Needs Good Margins To Innovate, Compares Strategy To Office (pcgamer.com) 46

The best way to innovate in gaming is to have good margins, that's according to Microsoft chief executive Satya Nadella. He made the comments during an interview days after Bloomberg reported that Microsoft has expected unrealistic profit margins from its gaming division, which the report suggested was a likely reason for studio closures, game cancelations and thousands of layoffs at Xbox.

Nadella used the word "innovation" at least five times during the interview but never offered specifics about what he meant by it. He said Microsoft needs to "invent, maybe, some new interactive media" because gaming's competition is short-form video rather than other games. The CEO described Microsoft's new gaming strategy as being "everywhere, on every platform" after comparing the company's game publishing business to Microsoft Office. He said "the biggest gaming business is the Windows business" and added that he is looking forward to "the next console, the next PC gaming."
Earth

Gates Retreats From 'Doomsday' Climate View, Prioritizes Aid To Poorest Countries 51

Bill Gates is retreating from his earlier warnings about climate change. The Microsoft co-founder now argues that what he called the "doomsday view of climate change" has caused the climate community to focus too heavily on near-term emissions goals and divert resources from addressing poverty and disease in the world's poorest countries.

In a blog post, Gates wrote that climate change will have serious consequences but will not lead to humanity's demise. He acknowledges that some climate advocates will call him a hypocrite given his own carbon footprint and his 2021 book warning that climate change could be as deadly as COVID-19 by mid-century and five times as deadly by 2100.

The poorest countries receive less than 1% of rich countries' budgets at their highest level and that this share is shrinking as wealthy nations cut aid and low-income countries struggle with debt, he wrote. Rising temperatures are now inevitable and that the current consensus suggests Earth's average temperature will be between two and three degrees Celsius higher than 1850 levels by 2100.
Microsoft

OpenAI Finalizes Corporate Restructuring, Gives Microsoft 27% Stake and Technology Access Until 2032 (microsoft.com) 14

Microsoft and OpenAI have finalized a new agreement that removes uncertainty for investors and clears the path for OpenAI to restructure as a for-profit business. Microsoft receives a 27% ownership stake in OpenAI worth approximately $135 billion and retains access to the AI startup's technology until 2032, including models that achieve AGI. OpenAI completed its recapitalization, simplifying its corporate structure while keeping the nonprofit in control of the for-profit entity. The OpenAI Foundation receives an equity stake worth roughly $130 billion and plans to initially focus on funding work to accelerate health breakthroughs.

Microsoft backed OpenAI with $13.75 billion and was the biggest holdout among investors during negotiations. Once OpenAI achieves AGI, verified by an independent expert panel, Microsoft will no longer receive a cut of OpenAI's revenue. Microsoft also loses its right of first refusal on new cloud infrastructure business from OpenAI, though OpenAI commits an additional $250 billion to Azure.
AI

'AI Sets Up Kodak Moment For Global Consultants' (reuters.com) 16

An anonymous reader shares a column: As the AI boom develops, consultants are in a tricky spot. The pandemic, inflation and economic uncertainty have encouraged many of their big clients to tighten expenditure. The U.S. government, one of the biggest spenders, has been cancelling multiple billion-dollar contracts in an effort to conserve cash. In March, 10 of the largest consultants including Deloitte, Accenture, Booz Allen Hamilton, IBM and Guidehouse were targeted by the Department of Government Efficiency to justify their fees. As a result, the largest listed players' shares have collapsed by up to 30% in the past two years, against the S&P 500's 50% jump.

AI is, in some respects, a boon. In September, Accenture said it had helped it cut 11,000 jobs, and CEO Julie Sweet is set to augment that with staff that cannot be retrained. Salesforce recently laid off 4000 customer support workers. Microsoft has halted hiring in its consulting business. Unfortunately, big clients are cottoning on to the advantages too. One finance chief of a large UK company outlined the issue for Breakingviews via an illustrative example. Say an outsourced project costs the client $1 million to do themselves, and Accenture and the like have historically been able to do the same job for $200,000. With the advent of machine learning, companies can do the same work for just $10,000. This gives clients considerable leverage. If consultants won't lower their prices to near the relevant level, the client can find one who will. Or just do the job itself.

XBox (Games)

Microsoft's Next Xbox Will Run Full Windows and Eliminate Multiplayer Paywall, Report Says (windowscentral.com) 66

Microsoft's next Xbox console will run full Windows and allow users to exit the Xbox interface to access Steam, Epic Games Store, Battle.net, and other PC storefronts, according to Windows Central. The device will launch without a multiplayer paywall. Xbox CEO Phil Spencer told users last week to look at the Xbox Ally handheld for an indication of where Xbox is headed. The company has been using the Ally as a beta test to gather feedback on the experience that will power its next wave of console hardware.

The new Xbox will include the entire Xbox console library spanning original Xbox, Xbox 360, Xbox One, and Xbox Series X/S titles. These games will run natively and launch through the Xbox launcher's library. Users staying within the Xbox ecosystem will encounter an onboarding experience similar to current consoles. Those who choose to access Windows will be able to install PlayStation PC titles like God of War and Spider-Man purchased through Steam or Epic Games.
Australia

Australia Sues Microsoft Over AI-linked Subscription Price Hikes (reuters.com) 35

Australia's competition regulator sued Microsoft today, accusing it of misleading millions of customers into paying higher prices for its Microsoft 365 software after bundling it with AI tool Copilot. From a report: The Australian Competition and Consumer Commission alleged that from October 2024, the technology giant misled about 2.7 million customers by suggesting they had to move to higher-priced Microsoft 365 personal and family plans that included Copilot.

After the integration of Copilot, the annual subscription price of the Microsoft 365 personal plan increased by 45% to A$159 ($103.32) and the price of the family plan increased by 29% to A$179, the ACCC said. The regulator said Microsoft failed to clearly tell users that a cheaper "classic" plan without Copilot was still available.

AI

OpenAI's Less-Flashy Rival Might Have a Better Business Model (msn.com) 49

OpenAI's rival Anthropic has a different approach — and "a clearer path to making a sustainable business out of AI," writes the Wall Street Journal. Outside of OpenAI's close partnership with Microsoft, which integrates OpenAI's models into Microsoft's software products, OpenAI mostly caters to the mass market... which has helped OpenAI reach an annual revenue run rate of around $13 billion, around 30% of which it says comes from businesses.

Anthropic has generated much less mass-market appeal. The company has said about 80% of its revenue comes from corporate customers. Last month it said it had some 300,000 of them... Its cutting-edge Claude language models have been praised for their aptitude in coding: A July report from Menlo Ventures — which has invested in Anthropic — estimated via a survey that Anthropic had a 42% market share for coding, compared with OpenAI's 21%. Anthropic is also now ahead of OpenAI in market share for overarching corporate AI use, Menlo Ventures estimated, at 32% to OpenAI's 25%. Anthropic is also surprisingly close to OpenAI when it comes to revenue. The company is already at a $7 billion annual run rate and expects to get to $9 billion by the end of the year — a big lead over its better-known rival in revenue per user.

Both companies have backing in the form of investments from big tech companies — Microsoft for OpenAI, and a combination of Amazon and Google for Anthropic — that help provide AI computing infrastructure and expose their products to a broad set of customers. But Anthropic's growth path is a lot easier to understand than OpenAI's. Corporate customers are devising a plethora of money-saving uses for AI in areas like coding, drafting legal documents and expediting billing. Those uses are likely to expand in the future and draw more customers to Anthropic, especially as the return on investment for them becomes easier to measure...

Demonstrating how much demand there is for Anthropic among corporate customers, Microsoft in September said Anthropic's leading language model, Claude, would be offered within its Copilot suite of software despite Microsoft's ties to OpenAI.

"There is also a possibility that OpenAI's mass-market appeal becomes a turnoff for corporate customers," the article adds, "who want AI to be more boring and useful than fun and edgy."
Windows

Microsoft Disables Preview In File Explorer To Block Attacks (bleepingcomputer.com) 49

Slashdot reader joshuark writes: Microsoft says that the File Explorer (formerly Windows Explorer) now automatically blocks previews for files downloaded from the Internet to block credential theft attacks via malicious documents, according to a report from BleepingComputer. This attack vector is particularly concerning because it requires no user interaction beyond selecting a file to preview and removes the need to trick a target into actually opening or executing it on their system.

For most users, no action is required since the protection is enabled automatically with the October 2025 security update, and existing workflows remain unaffected unless you regularly preview downloaded files.

"This change is designed to enhance security by preventing a vulnerability that could leak NTLM hashes when users preview potentially unsafe files," Microsoft says in a support document published Wednesday.

It is important to note that this may not take effect immediately and could require signing out and signing back in.

AI

California Colleges Test AI Partnerships. Critics Complain It's Risky and Wasteful (msn.com) 58

America's largest university system, with 460,000 students, is the 22-campus "Cal State" system, reports the New York Times. And it's recently teamed with Amazon, OpenAI and Nvidia, hoping to embed chatbots in both teaching and learning to become what it says will be America's "first and largest AI-empowered" university" — and prepare students for "increasingly AI-driven" careers.

It's part of a trend of major universities inviting tech companies into "a much bigger role as education thought partners, AI instructors and curriculum providers," argues the New York Times, where "dominant tech companies are now helping to steer what an entire generation of students learn about AI, and how they use it — with little rigorous evidence of educational benefits and mounting concerns that chatbots are spreading misinformation and eroding critical thinking..."

"Critics say Silicon Valley's effort to make AI chatbots integral to education amounts to a mass experiment on young people." As part of the effort, [Cal State] is paying OpenAI $16.9 million to provide ChatGPT Edu, the company's tool for schools, to more than half a million students and staff — which OpenAI heralded as the world's largest rollout of ChatGPT to date. Cal State also set up an AI committee, whose members include representatives from a dozen large tech companies, to help identify the skills California employers need and improve students' career opportunities... Cal State is not alone. Last month, California Community Colleges, the nation's largest community college system, announced a collaboration with Google to supply the company's "cutting edge AI tools" and training to 2.1 million students and faculty. In July, Microsoft pledged $4 billion for teaching AI skills in schools, community colleges and to adult workers...

[A]s schools like Cal State work to usher in what they call an "AI-driven future," some researchers warn that universities risk ceding their independence to Silicon Valley. "Universities are not tech companies," Olivia Guest and Iris van Rooij, two computational cognitive scientists at Radboud University in the Netherlands, recently said in comments arguing against fast AI adoption in academia. "Our role is to foster critical thinking," the researchers said, "not to follow industry trends uncritically...."

Some faculty members have pushed back against the AI effort, as the university system faces steep budget cuts. The multimillion-dollar deal with OpenAI — which the university did not open to bidding from rivals like Google — was wasteful, they added. Faculty senates on several Cal State campuses passed resolutions this year criticizing the AI initiative, saying the university had failed to adequately address students using chatbots to cheat. Professors also said administrators' plans glossed over the risks of AI to students' critical thinking and ignored troubling industry labor practices and environmental costs.

Martha Kenney, a professor of women and gender studies at San Francisco State University, described the AI program as a Cal State marketing vehicle helping tech companies promote unproven chatbots as legitimate educational tools.

The article notes that Cal State's chief information officer "defended the OpenAI deal, saying the company offered ChatGPT Edu at an unusually low price.

"Still, California's community college system landed AI chatbot services from Google for more than 2 million students and faculty — nearly four times the number of users Cal State is paying OpenAI for — for free."

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