Microsoft has created a real-time AI-generated rendition of Quake II gameplay (playable on the web).

Friday Xbox's general manager of gaming AI posted the startling link to "an AI-generated gaming experience" at Copilot.Microsoft.com "Move, shoot, explore — and every frame is created on the fly by an AI world model, responding to player inputs in real-time. Try it here."

They started with their "Muse" videogame world models, adding "a real-time playable extension" that players can interact with through keyboard/controller actions, "essentially allowing you to play inside the model," according to a Microsoft blog post. A concerted effort by the team resulted in both planning out what data to collect (what game, how should the testers play said game, what kind of behaviours might we need to train a world model, etc), and the actual collection, preparation, and cleaning of the data required for model training. Much to our initial delight we were able to play inside the world that the model was simulating. We could wander around, move the camera, jump, crouch, shoot, and even blow-up barrels similar to the original game. Additionally, since it features in our data, we can also discover some of the secrets hidden in this level of Quake II. We can also insert images into the models' context and have those modifications persist in the scene...

We do not intend for this to fully replicate the actual experience of playing the original Quake II game. This is intended to be a research exploration of what we are able to build using current ML approaches. Think of this as playing the model as opposed to playing the game... The interactions with enemy characters is a big area for improvement in our current WHAMM model. Often, they will appear fuzzy in the images and combat with them (damage being dealt to both the enemy/player) can be incorrect.
They warn that the model "can and will forget about objects that go out of view" for longer than 0.9 seconds. "This can also be a source of fun, whereby you can defeat or spawn enemies by looking at the floor for a second and then looking back up. Or it can let you teleport around the map by looking up at the sky and then back down. These are some examples of playing the model."

This generative AI model was trained on Quake II "with just over a week of data," reports Tom's Hardware — a dramatic reduction from the seven years required for the original model launched in February.

Some context from The Verge: "You could imagine a world where from gameplay data and video that a model could learn old games and really make them portable to any platform where these models could run," said Microsoft Gaming CEO Phil Spencer in February. "We've talked about game preservation as an activity for us, and these models and their ability to learn completely how a game plays without the necessity of the original engine running on the original hardware opens up a ton of opportunity."
"Is porting a game like Gameday 98 more feasible through AI or a small team?" asks the blog Windows Central. "What costs less or even takes less time? These are questions we'll be asking and answering over the coming decade as AI continues to grow. We're in year two of the AI boom; I'm terrified of what we'll see in year 10."

"It's clear that Microsoft is now training Muse on more games than just Bleeding Edge," notes The Verge, "and it's likely we'll see more short interactive AI game experiences in Copilot Labs soon." Microsoft is also working on turning Copilot into a coach for games, allowing the AI assistant to see what you're playing and help with tips and guides. Part of that experience will be available to Windows Insiders through Copilot Vision soon.

Slashdot reader zlives shared this report from BleepingComputer: Microsoft used its AI-powered Security Copilot to discover 20 previously unknown vulnerabilities in the GRUB2, U-Boot, and Barebox open-source bootloaders.

GRUB2 (GRand Unified Bootloader) is the default boot loader for most Linux distributions, including Ubuntu, while U-Boot and Barebox are commonly used in embedded and IoT devices. Microsoft discovered eleven vulnerabilities in GRUB2, including integer and buffer overflows in filesystem parsers, command flaws, and a side-channel in cryptographic comparison. Additionally, 9 buffer overflows in parsing SquashFS, EXT4, CramFS, JFFS2, and symlinks were discovered in U-Boot and Barebox, which require physical access to exploit.

The newly discovered flaws impact devices relying on UEFI Secure Boot, and if the right conditions are met, attackers can bypass security protections to execute arbitrary code on the device. While exploiting these flaws would likely need local access to devices, previous bootkit attacks like BlackLotus achieved this through malware infections.
Miccrosoft titled its blog post "Analyzing open-source bootloaders: Finding vulnerabilities faster with AI." (And they do note that Micxrosoft disclosed the discovered vulnerabilities to the GRUB2, U-boot, and Barebox maintainers and "worked with the GRUB2 maintainers to contribute fixes... GRUB2 maintainers released security updates on February 18, 2025, and both the U-boot and Barebox maintainers released updates on February 19, 2025.")

They add that performing their initial research, using Security Copilot "saved our team approximately a week's worth of time," Microsoft writes, "that would have otherwise been spent manually reviewing the content." Through a series of prompts, we identified and refined security issues, ultimately uncovering an exploitable integer overflow vulnerability. Copilot also assisted in finding similar patterns in other files, ensuring comprehensive coverage and validation of our findings...

As AI continues to emerge as a key tool in the cybersecurity community, Microsoft emphasizes the importance of vendors and researchers maintaining their focus on information sharing. This approach ensures that AI's advantages in rapid vulnerability discovery, remediation, and accelerated security operations can effectively counter malicious actors' attempts to use AI to scale common attack tactics, techniques, and procedures (TTPs).
This week Google also announced Sec-Gemini v1, "a new experimental AI model focused on advancing cybersecurity AI frontiers."

Is OpenAI's ChatGPT violating copyrights? The New York Times sued OpenAI in December 2023. But Ars Technica summarizes OpenAI's response. The New York Times (or NYT) "should have known that ChatGPT was being trained on its articles... partly because of the newspaper's own reporting..."

OpenAI pointed to a single November 2020 article, where the NYT reported that OpenAI was analyzing a trillion words on the Internet.

But on Friday, U.S. district judge Sidney Stein disagreed, denying OpenAI's motion to dismiss the NYT's copyright claims partly based on one NYT journalist's reporting. In his opinion, Stein confirmed that it's OpenAI's burden to prove that the NYT knew that ChatGPT would potentially violate its copyrights two years prior to its release in November 2022... And OpenAI's other argument — that it was "common knowledge" that ChatGPT was trained on NYT articles in 2020 based on other reporting — also failed for similar reasons...

OpenAI may still be able to prove through discovery that the NYT knew that ChatGPT would have infringing outputs in 2020, Stein said. But at this early stage, dismissal is not appropriate, the judge concluded. The same logic follows in a related case from The Daily News, Stein ruled. Davida Brook, co-lead counsel for the NYT, suggested in a statement to Ars that the NYT counts Friday's ruling as a win. "We appreciate Judge Stein's careful consideration of these issues," Brook said. "As the opinion indicates, all of our copyright claims will continue against Microsoft and OpenAI for their widespread theft of millions of The Times's works, and we look forward to continuing to pursue them."

The New York Times is also arguing that OpenAI contributes to ChatGPT users' infringement of its articles, and OpenAI lost its bid to dismiss that claim, too. The NYT argued that by training AI models on NYT works and training ChatGPT to deliver certain outputs, without the NYT's consent, OpenAI should be liable for users who manipulate ChatGPT to regurgitate content in order to skirt the NYT's paywalls... At this stage, Stein said that the NYT has "plausibly" alleged contributory infringement, showing through more than 100 pages of examples of ChatGPT outputs and media reports showing that ChatGPT could regurgitate portions of paywalled news articles that OpenAI "possessed constructive, if not actual, knowledge of end-user infringement." Perhaps more troubling to OpenAI, the judge noted that "The Times even informed defendants 'that their tools infringed its copyrighted works,' supporting the inference that defendants possessed actual knowledge of infringement by end users."

An anonymous reader shares a report: A Microsoft employee disrupted the company's 50th anniversary event to protest its use of AI. "Shame on you," said Microsoft employee Ibtihal Aboussad, speaking directly to Microsoft AI CEO Mustafa Suleyman. "You are a war profiteer. Stop using AI for genocide. Stop using AI for genocide in our region. You have blood on your hands. All of Microsoft has blood on its hands. How dare you all celebrate when Microsoft is killing children. Shame on you all."

An anonymous reader shares a report: The gap between Windows 10 and Windows 11 continues to narrow, and Microsoft's flagship operating system is on track to finally surpass its predecessor by summer. The latest figures from Statcounter show the increase in Windows 11's market share accelerating, while Windows 10 declines.

Before Champagne corks start popping in Redmond, it is worth noting that Windows 10 still accounts for over half the market -- 54.2 percent -- and Windows 11 now accounts for 42.69 percent. However, if the current trends continue, Windows 10 should finally drop below the 50 percent mark next month and be surpassed by Windows 11 shortly after.

The cause is likely due to enterprises pushing the upgrade button rather than having to deal with extended support for Windows 10. Support for most Windows 10 versions ends on October 14, 2025, and Microsoft has shown no signs of deviating from its plan to retire the veteran operating system. [...] Whether users actually want the operating system is another matter. Windows 11 offers few compelling features that justify an upgrade and no killer application. The looming October 14 support cut-off date is likely to be the major driving factor behind the move to Windows 11.

Microsoft is testing a new Windows 11 feature that resizes taskbar icons dynamically like on macOS, with options to shrink icons when the taskbar is full or keep them small at all times. The Verge reports: If you're on the beta, under Taskbar settings - Taskbar behaviors, you can now select options under Show smaller taskbar buttons: Always, Never, or When taskbar is full. The third option will scale down icons so that they all can fit and not get hidden away in a second menu. The behavior appears to be similar to macOS where icons on the dock get smaller as more applications or minimized windows are added. Microsoft is also testing an update to the Start menu. "Now, it has a larger layout that includes the ability to hide the recommended recent apps and can show all of your apps on the page," reports The Verge.

An anonymous reader shares a report: Microsoft's business-oriented "Link" mini-desktop PC, which connects directly to the company's Windows 365 cloud service, is now available to buy for $349.99 in the US and in several other countries. Windows 365 Link, which was announced last November, is a device that is more easily manageable by IT departments than a typical computer while also reducing the needs of hands on support.

Climate startup Aspiration, which boasted a roster of celebrity backers and arranged carbon credits for Meta Platforms, Microsoft and other large companies, filed bankruptcy weeks after its co-founder was arrested on fraud charges. From a report: CTN Holdings, as the company is now known, has about $170 million in debt. The goal of the bankruptcy is to sell its assets as quickly as possible in order to repay creditors, chief restructuring officer Miles Staglik said in a court filing. The pool of potential bidders is small and the nature of the CTN's ventures will likely require more cash and "long term horizons before any potential value could be realized for creditors," Staglik said.

The bankruptcy was filed after co-founder Joseph Sanberg was charged by federal prosecutors with conspiring to defraud two investor funds of at least $145 million, according to a US Department of Justice announcement earlier this month. The charges involve his personal conduct and don't implicate CTN or its affiliates "in any criminal activity," said Staglik, a managing director at CR3 Partners that's been hired as CTN's restructuring adviser.

Despite promises of more efficient streaming, the AV1 video codec hasn't achieved widespread adoption seven years after its 2018 debut, even with backing from tech giants Netflix, Microsoft, Google, Amazon, and Meta. The Alliance for Open Media (AOMedia) claims AV1 is 30% more efficient than standards like HEVC, delivering higher-quality video at lower bandwidth while remaining royalty-free.

Major services including YouTube, Netflix, and Amazon Prime Video have embraced the technology, with Netflix encoding approximately 95% of its content using AV1. However, adoption faces significant hurdles. Many streaming platforms including Max, Peacock, and Paramount Plus haven't implemented AV1, partly due to hardware limitations. Devices require specific decoders to properly support AV1, though recent products from Apple, Nvidia, AMD, and Intel have begun including them. "In order to get its best features, you have to accept a much higher encoding complexity," Larry Pearlstein, associate professor at the College of New Jersey, told The Verge. "But there is also higher decoding complexity, and that is on the consumer end."

Microsoft has pulled back on data center projects around the world, suggesting the company is taking a harder look at its plans to build the server farms powering artificial intelligence and the cloud. From a report: The software company has recently halted talks for, or delayed development of, sites in Indonesia, the UK, Australia, Illinois, North Dakota and Wisconsin, according to people familiar with the situation. Microsoft is widely seen as a leader in commercializing AI services, largely thanks to its close partnership with OpenAI. Investors closely track Microsoft's spending plans to get a sense of long-term customer demand for cloud and AI services.

It's hard to know how much of the company's data center pullback reflects expectations of diminished demand versus temporary construction challenges, such as shortages of power and building materials. Some investors have interpreted signs of retrenchment as an indication that projected purchases of AI services don't justify Microsoft's massive outlays on server farms. Those concerns have weighed on global tech stocks in recent weeks, particularly chipmakers like Nvidia which suck up a significant share of data center budgets.

Longtime Slashdot reader theodp writes: A coalition of Washington state business leaders -- which includes Microsoft President Brad Smith and Amazon Chief Legal Officer David Zapolsky -- released a letter Wednesday urging state lawmakers to reconsider recently proposed tax and budget measures. "I actually think it's an almost unprecedented outpouring of support from across the business community," said Microsoft's Smith in an interview. In their letter, which reads in part like it could have been penned by a GenAI Marie Antoinette, the WA business leaders question whether any more spending is warranted given how poorly Washington's 4th and 8th graders compare to children in the rest of the nation on test scores. The letter also laments the increase in WA's homeless population as it celebrates WA Governor Bob Ferguson's announcement that he would not sign a proposed wealth tax.

From the letter: "We have long partnered with you in many areas, including education funding. Despite more than doubling K-12 spending and increasing teacher salaries to some of the highest rates in the nation, 4th and 8th grade assessment scores in reading and math are among the worst in the country. Similarly, we have collaborated with you to address housing and homelessness. Despite historic investments in affordable housing and homelessness prevention since 2013, Washington's homeless population has grown by 71 percent, making it the third largest in the nation after California and New York, according to HUD. These outcomes beg the question of whether more investment is needed or whether we need different policies instead."

Back in 2010, Smith teamed with then-Microsoft CEO Steve Ballmer and then-Amazon CEO Jeff Bezos to fund an effort to defeat an initiative for a WA state income that was pushed for by Bill Gates Sr. In 2023, Bezos moved out of WA state before being subjected to a 7% tax on gains of more than $250,000 from the sale of stocks and bonds, a move that reportedly saved him $1.2 billion in WA taxes on his 2024 Amazon stock sales.

To mark Microsoft's 50th anniversary, Bill Gates has released the original Altair BASIC source code he co-wrote with Paul Allen, calling it the "coolest code" he's ever written and a symbol of the company's humble beginnings. Thurrott reports: "Before there was Office or Windows 95 or Xbox or AI, there was Altair BASIC," Bill Gates writes on his Gates Notes website. "In 1975, Paul Allen and I created Microsoft because we believed in our vision of a computer on every desk and in every home. Five decades later, Microsoft continues to innovate new ways to make life easier and work more productive. Making it 50 years is a huge accomplishment, and we couldn't have done it without incredible leaders like Steve Ballmer and Satya Nadella, along with the many people who have worked at Microsoft over the years."

Today, Gates says that the 50th anniversary of Microsoft is "bittersweet," and that it feels like yesterday when he and Allen "hunched over the PDP-10 in Harvard's computer lab, writing the code that would become the first product of our new company." That code, he says, remains "the coolest code I've ever written to this day ... I still get a kick out of seeing it, even all these years later."

Microsoft is pushing businesses to shift away from perpetual Office licenses to Microsoft 365 subscriptions, citing collaboration limitations and rising IT costs associated with standalone software. "You may have started noticing limitations," Microsoft says in a post. "Your apps are stuck on your desktop, limiting productivity anytime you're away from your office. You can't easily access your files or collaborate when working remotely."

In its pitch, the Windows-maker says Microsoft 365 includes Office applications as well as security features, AI tools, and cloud storage. The post cites a Microsoft-commissioned Forrester study that claims the subscription model delivers "223% ROI over three years, with a payback period of less than six months" and "over $500,000 in benefits over three years."

Microsoft Chief Technology Officer Kevin Scott has predicted that AI will generate 95% of code within five years. Speaking on the 20VC podcast, Scott said AI would not replace software engineers but transform their role. "It doesn't mean that the AI is doing the software engineering job.... authorship is still going to be human," Scott said.

According to Scott, developers will shift from writing code directly to guiding AI through prompts and instructions. "We go from being an input master (programming languages) to a prompt master (AI orchestrator)," he said. Scott said the current AI systems have significant memory limitations, making them "awfully transactional," but predicted improvements within the next year.

An anonymous reader quotes a report from Ars Technica: What does it take to get OpenAI and Anthropic -- two competitors in the AI assistant market -- to get along? Despite a fundamental difference in direction that led Anthropic's founders to quit OpenAI in 2020 and later create the Claude AI assistant, a shared technical hurdle has now brought them together: How to easily connect their AI models to external data sources. The solution comes from Anthropic, which developed and released an open specification called Model Context Protocol (MCP) in November 2024. MCP establishes a royalty-free protocol that allows AI models to connect with outside data sources and services without requiring unique integrations for each service.

"Think of MCP as a USB-C port for AI applications," wrote Anthropic in MCP's documentation. The analogy is imperfect, but it represents the idea that, similar to how USB-C unified various cables and ports (with admittedly a debatable level of success), MCP aims to standardize how AI models connect to the infoscape around them. So far, MCP has also garnered interest from multiple tech companies in a rare show of cross-platform collaboration. For example, Microsoft has integrated MCP into its Azure OpenAI service, and as we mentioned above, Anthropic competitor OpenAI is on board. Last week, OpenAI acknowledged MCP in its Agents API documentation, with vocal support from the boss upstairs. "People love MCP and we are excited to add support across our products," wrote OpenAI CEO Sam Altman on X last Wednesday.

MCP has also rapidly begun to gain community support in recent months. For example, just browsing this list of over 300 open source servers shared on GitHub reveals growing interest in standardizing AI-to-tool connections. The collection spans diverse domains, including database connectors like PostgreSQL, MySQL, and vector databases; development tools that integrate with Git repositories and code editors; file system access for various storage platforms; knowledge retrieval systems for documents and websites; and specialized tools for finance, health care, and creative applications. Other notable examples include servers that connect AI models to home automation systems, real-time weather data, e-commerce platforms, and music streaming services. Some implementations allow AI assistants to interact with gaming engines, 3D modeling software, and IoT devices.

Anthropic announced updates to the "responsible scaling" policy for its AI, including defining which of its model safety levels are powerful enough to need additional security safeguards. In an earlier version of its responsible scaling policy, Anthropic said it will start sweeping physical offices for hidden devices as part of a ramped-up security effort as the AI race intensifies. From a report: The company, backed by Amazon and Google, published safety and security updates in a blog post on Monday, and said it also plans to establish an executive risk council and build an in-house security team. Anthropic closed its latest funding round earlier this month at a $61.5 billion valuation, which makes it one of the highest-valued AI startups.

In addition to high-growth startups, tech giants including Google, Amazon and Microsoft are racing to announce new products and features. Competition is also coming from China, a risk that became more evident earlier this year when DeepSeek's AI model went viral in the U.S. Anthropic said in the post that it will introduce "physical" safety processes, such as technical surveillance countermeasures -- or the process of finding and identifying surveillance devices that are used to spy on organizations. The sweeps will be conducted "using advanced detection equipment and techniques" and will look for "intruders." CNBC corrected that story to note that it had written about previous security safeguards Anthropic shared in October 2024. On Monday, Anthropic defined model capabilities that would require additional deployment and security safeguards beyond AI Safety Level (ASL) 3.

Taiwanese authorities have accused 11 Chinese companies, including SMIC, of secretly setting up disguised entities in Taiwan to illegally recruit tech talent from firms like Intel and Microsoft. The Register reports: One of those companies is apparently called Yunhe Zhiwang (Shanghai) Technology Co., Ltd and develops high-end network chips. The Bureau claims its chips are used in China's "Data East, Compute West" strategy that, as we reported when it was announced in 2022, calls for five million racks full of kit to be moved from China's big cities in the east to new datacenters located near renewable energy sources in country's west. Datacenters in China's east will be used for latency-sensitive applications, while heavy lifting takes place in the west. Staff from Intel and Microsoft were apparently lured to work for Yunhe Zhiwang, which disguised its true ownership by working through a Singaporean company.

The Investigation Bureau also alleged that China's largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC), used a Samoan company to establish a presence in Taiwan and then hired local talent. That's a concerning scenario as SMIC is on the USA's "entity list" of organizations felt to represent a national security risk. The US gets tetchy when its friends and allies work with companies on the entity list.

A third Chinese entity, Shenzhen Tongrui Microelectronics Technology, disguised itself so well Taiwan's Ministry of Industry and Information Technology lauded it as an important innovator and growth company. As a result of the Bureau's work, prosecutors' offices in seven Taiwanese cities are now looking into 11 Chinese companies thought to have hidden their ties to Beijing.

An anonymous reader shares a report: Microsoft has closed its IoT & AI Insider Lab in Shanghai's Zhangjiang hi-tech zone, marking the latest sign of the US tech giant's retreat from China amid rising geopolitical tensions.

The Shanghai lab, meant to help with domestic development of the Internet of Things (IoT) and artificial intelligence (AI) technologies, closed earlier this year, according to people who work in the Zhangjiang AI Island area. Opened in May 2019, Microsoft's IoT & AI Insider Lab was touted as a flagship collaboration between the global tech giant and Zhangjiang, the innovation hub of Shanghai's Pudong district, where numerous domestic and international semiconductor and AI companies have set up shop. The lab covered roughly 2,800 square meters (30,000 square feet).

Microsoft has announced that it's overhauling its Blue Screen of Death error message in Windows 11. From a report: The new design drops the traditional blue color, frowning face, and QR code in favor of a simplified screen that looks a lot more like the black screen you see when Windows is performing an update. It's not immediately clear if this new BSOD will remain as a black screen once Microsoft ships the final version of this update.

"We're previewing a new, more streamlined UI for unexpected restarts which better aligns with Windows 11 design principles and supports our goal of getting users back into productivity as fast as possible," explains Microsoft in a blog post about the change. "We've simplified your experience while preserving the technical information on the screen."

"Microsoft built things. It broke things."

That's how the Seattle Times kicks off a series of articles celebrating Microsoft's 50th anniversary — adding that Microsoft also gave some people "a lucrative retirement early in their lives, and their own stories to tell."

What did they remember from Microsoft's earliest days? Scott Oki joined Microsoft as employee no. 121. The company was small; Gates was hands-on, and hard to please. "One of his favorite phrases was 'that's the stupidest thing I've ever heard,'" Oki says. "He didn't use that on me, so I feel pretty good about that."

Another, kinder phrase that pops to Oki's mind when discussing the international division he founded at Microsoft is "bringing home the bacon." An obsession with rapid revenue growth permeated Microsoft in those early days. Oki was about three weeks into the job as marketing manager when he presented a global expansion plan to Gates. "Had I done business internationally before? No," Oki said. "Do I speak a language other than English? No." But Gates gave Oki a $1 million budget to found the international division and sell Microsoft products overseas.

He established subsidiaries in the most important markets at the time: Japan, United Kingdom, Germany and France. And, because he had a few bucks left over, Australia. "Of the initial subsidiaries we started, every single one of them was profitable in its first year," he says...

Oki left Microsoft on March 1, 1992, 10 years to the day after he was hired.
Other memories shared by early Microsoft employees:

• One recent graudate remembered her parents in Spokane saying "I think that's Mary and Bill Gates' son's company. If that kid is anything like those two, that is going to be a great company,'" She got her first job at Microsoft in 1992 — and 33 years later, she's a senior director at Microsoft Philanthropies.

• The Times also interviewed one of Microsoft's first lawyers, who remembers that "The day the U.S. government sued Microsoft ... that was a tough day for me. It kind of turned my world upside down for about the next eight years."

• Microsoft senior VP Brad Chase remembers negotiating with the Rolling Stones for the rights to their song "Start Me Up" for the Windows 95 ad campaign. ("Chase is quick to dispel any rumor that Mick Jagger called up Bill Gates and got $12 million. But he won't say how much the company paid.")
  
  But Chase does tell the Times that Bill Gates "used to say all of the time, 'We're going to bet the company on Windows.' That was a huge bet because Windows, frankly, was a lousy product in its early days."