"Microsoft buys a lot of GPUs from both Nvidia and AMD," writes the Register. "But moving forward, Redmond's leaders want to shift the majority of its AI workloads from GPUs to its own homegrown accelerators..." Driving the transition is a focus on performance per dollar, which for a hyperscale cloud provider is arguably the only metric that really matters. Speaking during a fireside chat moderated by CNBC on Wednesday, Microsoft CTO Kevin Scott said that up to this point, Nvidia has offered the best price-performance, but he's willing to entertain anything in order to meet demand.

Going forward, Scott suggested Microsoft hopes to use its homegrown chips for the majority of its datacenter workloads. When asked, "Is the longer term idea to have mainly Microsoft silicon in the data center?" Scott responded, "Yeah, absolutely...

Microsoft is reportedly in the process of bringing a second-generation Maia accelerator to market next year that will no doubt offer more competitive compute, memory, and interconnect performance... It should be noted that AI accelerators aren't the only custom chips Microsoft has been working on. Redmond also has its own CPU called Cobalt and a whole host of platform security silicon designed to accelerate cryptography and safeguard key exchanges across its vast datacenter domains.

An anonymous reader shares a report from The Verge: Microsoft is getting ready to announce an ad-supported version of Xbox Cloud Gaming. Sources familiar with Microsoft's plans tell The Verge that the software maker has started testing ad-supported games streaming internally, allowing employees to play select titles free without a Game Pass subscription.

I understand that the free ad-supported version of Xbox Cloud Gaming will include the ability to stream some games you own, as well as eligible Free Play Days titles, which let Xbox players try games over a weekend. You'll also be able to stream Xbox Retro Classics games. Sources tell me the internal testing includes around two minutes of preroll ads before a game is available to stream for free through Xbox Cloud Gaming. [...] The ad-supported Xbox Cloud Gaming version will be available on PC, Xbox consoles, handheld devices, and via the web.

theodp writes: From Thursday's Code.org press release announcing the replacement of the annual Hour of Code for K-12 schoolkids with the new Hour of AI: "A decade ago, the Hour of Code ignited a global movement that introduced millions of students to computer science, inspiring a generation of creators. Today, Code.org announced the next chapter: the Hour of AI, a global initiative developed in collaboration with CSforALL and supported by dozens of leading organizations. [...] As artificial intelligence rapidly transforms how we live, work, and learn, the Hour of AI reflects an evolution in Code.org's mission: expanding from computer science education into AI literacy. This shift signals how the education and technology fields are adapting to the times, ensuring that students are prepared for the future unfolding now."

"Just as the Hour of Code showed students they could be creators of technology, the Hour of AI will help them imagine their place in an AI-powered world," said Hadi Partovi, CEO and co-founder of Code.org. "Every student deserves to feel confident in their understanding of the technology shaping their future. And every parent deserves the confidence that their child is prepared for it."

"Backed by top organizations such as Microsoft, Amazon, Anthropic, Zoom, LEGO Education, Minecraft, Pearson, ISTE, Common Sense Media, American Federation of Teachers (AFT), National Education Association (NEA), and Scratch Foundation, the Hour of AI is designed to bring AI education into the mainstream. New this year, the National Parents Union joins Code.org and CSforALL as a partner to emphasize that AI literacy is not only a student priority but a parent imperative."

The announcement of the tech-backed K-12 CS education nonprofit's mission shift into AI literacy comes just days after Code.org's co-founders took umbrage with a NY Times podcast that discussed "how some of the same tech companies that pushed for computer science are now pivoting from coding to pushing for AI education and AI tools in schools" and advancing the narrative that "the country needs more skilled AI workers to stay competitive, and kids who learn to use AI will get better job opportunities."

Ha Dang, a self-taught accountant from Scunthorpe who trained via YouTube, won the inaugural Microsoft Excel UK Championships on September 30. The victory earned him a spot at the Microsoft Excel World Championships in Las Vegas, a three-day tournament inside a 30,000-square-foot esports arena where players compete for $5,000 and are broadcast on ESPN.

Thirty competitors sat shoulder to shoulder through three gruelling rounds of spreadsheet challenges. Each round featured a custom case with seven levels of increasing difficulty. The second round case, Right Royal Battle Part II, took 80 drafts to perfect. Players calculated troop sizes from emoji battalions and army movements across fourteenth-century France. Hadyn Wiseman, who once held the Guinness World Record for most backflips in a minute, placed fourth. Lara Holding-Jones finished thirteenth. Jaq Kennedy founded the UK chapter last year. National chapters have since formed in Germany, Brazil, and Chile.

An anonymous reader quotes a report from MIT Technology Review: A team at Microsoft says it used artificial intelligence to discover a "zero day" vulnerability in the biosecurity systems used to prevent the misuse of DNA. These screening systems are designed to stop people from purchasing genetic sequences that could be used to create deadly toxins or pathogens. But now researchers led by Microsoft's chief scientist, Eric Horvitz, says they have figured out how to bypass the protections in a way previously unknown to defenders.The team described its work today in the journalScience.

Horvitz and his team focused on generative AI algorithms that propose new protein shapes. These types of programs are already fueling the hunt for new drugs at well-funded startups like Generate Biomedicines and Isomorphic Labs, a spinout of Google. The problem is that such systems are potentially "dual use." They can use their training sets to generate both beneficial molecules and harmful ones. Microsoft says it began a "red-teaming" test of AI's dual-use potential in 2023 in order to determine whether "adversarial AI protein design" could help bioterrorists manufacture harmful proteins.

The safeguard that Microsoft attacked is what's known as biosecurity screening software. To manufacture a protein, researchers typically need to order a corresponding DNA sequence from a commercial vendor, which they can then install in a cell. Those vendors use screening software to compare incoming orders with known toxins or pathogens. A close match will set off an alert. To design its attack, Microsoft used several generative protein models (including its own, called EvoDiff) to redesign toxins -- changing their structure in a way that let them slip past screening software but was predicted to keep their deadly function intact. "This finding, combined with rapid advances in AI-enabled biological modeling, demonstrates the clear and urgent need for enhanced nucleic acid synthesis screening procedures coupled with a reliable enforcement and verification mechanism," says Dean Ball, a fellow at the Foundation for American Innovation, a think tank in San Francisco.

Top college degrees may no longer provide the edge they once did in the job market, per LinkedIn CEO Ryan Roslansky. "I think the mindset shift is probably the most exciting thing because my guess is that the future of work belongs not anymore to the people that have the fanciest degrees or went to the best colleges, but to the people who are adaptable, forward thinking, ready to learn, and ready to embrace these tools," Roslansky said. "It really kind of opens up the playing field in a way that I think we've never seen before."

A 2024 Microsoft survey found 71% of business leaders would choose less-experienced candidates with AI skills over experienced candidates without them. LinkedIn data showed job postings requiring AI literacy increased about 70% year-over-year. Roslansky said AI will not replace humans but people who embrace AI will replace those who don't.

Microsoft has announced that Xbox Game Pass Ultimate will cost $29.99 per month, up from $19.99. The company restructured its subscription service into three tiers ahead of the October 16 launch of two Xbox ROG Ally handheld consoles. The new Essential tier offers 50-plus games for $9.99 monthly. Premium includes 200-plus games for $14.99. Ultimate subscribers gain access to more than 400 games, day-one releases, improved cloud streaming quality, and services including EA Play, Ubisoft+ Classics, and Fortnite Crew.

Game Pass generated nearly $5 billion in fiscal 2025 revenue with 34 million subscribers in 2024. Console hardware prices are also increasing, with the Xbox Series X rising $50 to $649.99 starting October 3.

Microsoft is promoting Judson Althoff, currently executive vice president and chief commercial officer at Microsoft, to a new role as CEO of its commercial business. From a report: It's the latest shakeup inside the company, as Microsoft navigates what CEO Satya Nadella calls a "tectonic AI platform shift." It's also a move that will allow Nadella to focus on more technical work at Microsoft, while still remaining overall CEO.

In an internal memo to employees today, Nadella announced Althoff's promotion and said it's linked with the need for Microsoft to reinvent itself in the AI era and "bring together sales, marketing, operations, and engineering to drive growth and strengthen our position as the partner of choice for AI transformation." Althoff has led Microsoft's global sales organization for the past nine years, helping the company build out its Microsoft Customer and Partner Solutions (MCAPS) division. He will now also be responsible for the operations and marketing teams that help sell Microsoft's software and services to businesses, but not the engineering teams that help build them.

Microsoft began rolling out Windows 11 version 25H2 today, delivering the annual update as a compact enablement package to users who enable the "get the latest updates as soon as they're available" toggle in Windows Update. The company tested the release in its Windows Insider Release Preview ring during the previous month before the broader rollout.Version 25H2 shares its code base and servicing branch with the existing 24H2 release. Both versions will receive identical monthly feature updates going forward.

The update removes PowerShell 2.0 and the Windows Management Instrumentation command-line tool to reduce the operating system's footprint. John Cable, vice president of program management for Windows servicing and delivery, said the release includes advancements in build and runtime vulnerability detection paired with AI-assisted secure coding. Microsoft designed the version to address security threats under its security development lifecycle policy requirements. The company plans to expand availability over the coming months and will document known compatibility issues on its Windows release health hub. Devices with detected application or driver incompatibilities will receive safeguard holds that delay the update until resolution.

Chinese hackers breached email servers of foreign ministers as part of a years-long effort targeting the communications of diplomats around the world, according to researchers at the cybersecurity firm Palo Alto Networks. From a report: Attackers accessed Microsoft Exchange email servers, gaining the ability to search for information at some foreign ministries, said the team at Unit 42, the threat intelligence division of Palo Alto Networks, which has been tracking the group for nearly three years.

Hackers specifically searched in the email servers for key terms related to a China-Arab summit in Riyadh, Saudi Arabia, in 2022, said Lior Rochberger, senior researcher at the company. They also searched for names such as including Chinese President Xi Jinping and his wife, Peng Liyuan, in the context of that summit, the researchers said. The researchers declined to specifically identify which countries had their systems breached in the hacking campaign, but wrote in the report that the group's targeting patterns "align consistently with the People's Republic of China (PRC) economic and geopolitical interests."

Amazon today announced three new Kindle Scribe models, its e ink-featuring tables designed for note-taking and reading. The lineup includes the standard Kindle Scribe and a version without a front light alongside the Kindle Scribe Colorsoft. The new devices feature an 11-inch glare-free E Ink screen compared to the 10.2-inch display on previous models.

Amazon has reduced the weight to 400 grams from 433 grams and made the devices 5.4mm thin. The company added a quad-core processor and additional memory to deliver writing and page turns that are 40% faster than earlier versions. The Colorsoft model uses custom-built display technology to offer 10 pen colors and five highlighter colors. Amazon redesigned the software to include AI-powered notebook search and summaries. The devices will support Google Drive and Microsoft OneDrive for document access and allow users to export notes as editable text to OneNote. The standard Kindle Scribe will start at $499.99 and the Colorsoft at $629.99 when they become available later this year. The version without a front light will cost $429.99 and arrive early next year.

An anonymous reader shares a report: You've probably heard of vibe coding -- novices writing apps by creating a simple AI prompt -- but now Microsoft wants to introduce a similar thing for its Office apps. The software maker is launching a new Agent Mode in Excel and Word that can generate complex spreadsheets and documents with just a prompt. A new Office Agent in Copilot chat, powered by Anthropic models, is also launching today that can create PowerPoint presentations and Word documents from a "vibe working" chatbot.

[...] Agent Mode essentially takes a complex task and breaks it down with planning and reasoning that you can follow. It then uses OpenAI's GPT-5 model to break down each step of document creation into an agentic task and execute it. It's like watching an automated macro in real time, showing everything it's doing in the sidebar.

"Today's AIs are book smart," reports the Wall Street Journal. "Everything they know they learned from available language, images and videos. To evolve further, they have to get street smart."

And that requires "world models," which are "gaining momentum in frontier research and could allow technology to take on new roles in our lives." The key is enabling AI to learn from their environments and faithfully represent an abstract version of them in their "heads," the way humans and animals do. To do it, developers need to train AIs by using simulations of the world. Think of it like learning to drive by playing "Gran Turismo" or learning to fly from "Microsoft Flight Simulator." These world models include all the things required to plan, take actions and make predictions about the future, including physics and time... There's an almost unanimous belief among AI pioneers that world models are crucial to creating next-generation AI. And many say they will be critical to someday creating better-than-human "artificial general intelligence," or AGI. Stanford University professor and AI "godmother" Fei-Fei Li has raised $230 million to launch world-model startup World Labs...

Google DeepMind researchers set out to create a system that could generate real-world simulations with an unprecedented level of fidelity. The result, Genie 3 — which is still in research preview and not publicly available — can generate photo-realistic, open-world virtual landscapes from nothing more than a text prompt. You can think of Genie 3 as a way to quickly generate what's essentially an open-world videogame that can be as faithful to the real world as you like. It's a virtual space in which a baby AI can endlessly play, make mistakes and learn what it needs to do to achieve its goals, just as a baby animal or human does in the real world. That experimentation process is called reinforcement learning. Genie 3 is part of a system that could help train the AI that someday pilots robots, self-driving cars and other "embodied" AIs, says project co-lead Jack Parker-Holder. And the environments could be filled with people and obstacles: An AI could learn how to interact with humans by observing them moving around in that virtual space, he adds.
"It isn't clear whether all these bets will lead to the superintelligence that corporate leaders predict," the article concedes.

"But in the short term, world models could make AIs better at tasks at which they currently falter, especially in spatial reasoning."

"We've decided to support image-based search," announced the product manager for Firefox Search. Powered by the AI-driven Google Lens search technology, they promise the new feature offers "a frictionless, fast, and a curiosity-sparking way to (as Google puts it) 'search what you see'." With just a right-click on any image, you'll be able to:

- Find similar products, places, or objects
- Copy, translate, or search text from images
- Get inspiration for learning, travel, or shopping

Look for the new "Search Image with Google Lens" option in your right-click menu (tagged with a NEW badge at first). This is a desktop-only feature, and it will start gradually rolling out worldwide. Note: Google must be set as your default search engine for this feature to appear.

We'll be listening closely to your feedback as we roll it out. Some of the things we're wondering about:

Does the placement in the context menu align with your expectations?
Would you prefer the option to choose your visual search provider?
Where else would you like entry points to visual search (e.g. when you open a new tab, in the address bar, on mobile devices, etc.)

We can't wait to hear your thoughts as the rollout begins!
Some thoughts from WebProNews: Mozilla emphasizes that this is an opt-in feature, giving users control over activation, which aligns with the company's longstanding commitment to privacy and user agency.

Yet, for industry observers, this partnership with Google raises intriguing questions about competitive dynamics in the browser space, where Firefox has historically positioned itself as an independent alternative to Chrome... This move comes at a time when browsers are increasingly becoming platforms for AI-driven enhancements, as evidenced by recent updates in competitors like Microsoft's Edge, which integrates Copilot AI. Mozilla's decision to leverage Google Lens rather than developing an in-house solution could be seen as a pragmatic step to accelerate feature parity, especially given Firefox's smaller market share. Insiders note that by tapping into established technologies, Mozilla can focus resources on core strengths like privacy protections, potentially attracting users disillusioned with data-heavy ecosystems... While mobile users might feel left out, the phased rollout over the next few weeks allows for feedback loops through community channels, a hallmark of Mozilla's open-source ethos.

Data from similar integrations in other browsers suggests visual search can boost engagement by 15-20%, per industry reports, though Mozilla has not disclosed specific metrics yet... Looking ahead, Mozilla's strategy appears geared toward incremental innovations that bolster user retention without alienating its privacy-focused base. If successful, this could help Firefox claw back some ground against Chrome's dominance, estimated at over 60% market share. For now, the feature's gradual deployment invites ongoing dialogue, underscoring Mozilla's community-driven model in an industry often criticized for top-down decisions.

An anonymous reader shared this report from Computer Weekly: Policing data hosted in Microsoft's hyperscale cloud infrastructure could be processed in more than 100 countries, but the tech giant is obfuscating this information from its customers, Computer Weekly can reveal. According to documents released by the Scottish Police Authority (SPA) under freedom of information (FoI) rules, Microsoft refused to hand over crucial information about its international data flows to the SPA and Police Scotland when asked...

The tech giant also refused to disclose its own risk assessments into the transfer of UK policing data to other jurisdictions, including China and others deemed "hostile" in the DPIA documents. This means Police Scotland and the SPA — which are jointly rolling out Office 365 — are unable to satisfy the law enforcement-specific data protection rules laid out in Part Three of the Data Protection Act 2018 (DPA18), which places strict limits on the transfer of policing data outside the UK. The same documents also contain an admission from Microsoft — given while simultaneously refusing to divulge key information about data flows — that it is unable to guarantee the sovereignty of policing data held and processed within its O365 infrastructure. This echoes the statements senior Microsoft representatives made to the French senate in June 2025, in which they admitted the company cannot guarantee the sovereignty of European data stored and processed in its services generally.

The revelation that Microsoft may access customer data from more than 100 countries is a result of the correspondence previously disclosed under Freedom of Information and reported on by Computer Weekly... All in all, an analysis of Microsoft's distributed documentation — conducted by independent security consultant Owen Sayers and shared with Computer Weekly — suggests that Microsoft personnel or contractors can remotely access the data from 105 different countries, using 148 different sub-processors. Despite technically being public, Sayers highlighted how this information is not transparently laid out for Microsoft customers, and is distributed across different documents contained in non-indexed webpages.... "[A]ny normal amount of due diligence — even if it is conducted by skilled persons will likely fail to see the full scope of offshoring in play," he said...

Microsoft did not contest the accuracy of the remote access location figures cited by Computer Weekly in this story.

An anonymous reader shares a report: Senators are demanding answers from Big Tech companies accused of "filing thousands of H-1B skilled labor visa petitions after conducting mass layoffs of American employees." In letters sent to Amazon, Meta, Apple, Google, and Microsoft -- among some of the largest sponsors of H-1B visas -- Senators Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.) requested "information and data from each company regarding their recruitment and hiring practices, as well as any variation in salary and benefits between H-1B visa holders and American employees."

The letters came shortly after Grassley sent a letter to Department of Homeland Security Secretary Kristi Noem requesting that DHS stop "issuing work authorizations to student visa holders." According to Grassley, "foreign student work authorizations put America at risk of technological and corporate espionage," in addition to allegedly "contributing to rising unemployment rates among college-educated Americans."

[...] In the letters to tech firms, senators emphasized that the unemployment rate in America's tech sector is "well above" the overall jobless rate. Amazon perhaps faces the most scrutiny. US Citizenship and Immigration Services data showed that Amazon sponsored the most H-1B visas in 2024 at 14,000, compared to other criticized firms like Microsoft and Meta, which each sponsored 5,000, The Wall Street Journal reported. Senators alleged that Amazon blamed layoffs of "tens of thousands" on the "adoption of generative AI tools," then hired more than 10,000 foreign H-1B employees in 2025.

Microsoft has disabled the Israeli Defense Ministry's access to certain services and subscriptions, after finding evidence that the ministry used the tech company's cloud services to surveil Gaza citizens. WSJ adds: The software company made the move after an internal investigation indicated Israel's Defense Ministry used Microsoft's Azure cloud services for surveillance, according to a person familiar with the matter. The company probe is ongoing. "As employees, we all have a shared interest in privacy protection, given the business value it creates by ensuring our customers can rely on our services with rock solid trust," Microsoft President Brad Smith said in a blog post Thursday on Microsoft's company website.

Smith said Microsoft's investigation was guided by the company's "longstanding protection of privacy as a fundamental right." Microsoft opened the probe after the Guardian, the British news organization, reported in August that Israel used Azure to store data on Gaza civilians and surveil them. The issue has been the source of protests at the company.

Microsoft on Sept 24 announced new options for US and European customers to safely extend the life of the Windows 10 operating system free of charge just days before a key deadline to upgrade to Windows 11. From a report: The US tech giant plans to end support for Windows 10 on Oct 14, a move that has drawn criticism from consumer advocacy groups and sparked concerns among users who fear they will need to purchase new computers to stay protected from cyber threats.

Users who are unable to upgrade or choose to forgo the extended security updates will face increased vulnerability to cyberattacks. In response to these concerns, Microsoft informed European users that essential security updates will be extended for one year at no additional cost, provided they log in with a Microsoft account. Previously, the company had offered a one-year extension of Windows 10 security updates for $30 to users whose hardware is incompatible with Windows 11. In the US, a similar free option will allow users to upload their Windows 10 profiles to Microsoft's backup service and receive security updates for up to one year.

Microsoft AI CEO Mustafa Suleyman told The Verge today that the company plans to transform Edge into an "agentic browser" where Copilot controls tabs, navigates websites and completes tasks while users watch. Unlike The Browser Company's new Dia browser, Microsoft will integrate these capabilities directly into Edge.

Suleyman described Copilot opening tabs, reading multiple pages simultaneously and performing research transparently in real-time. The AI visits websites directly, preserving publisher traffic. Current Copilot features include tab navigation, page scrolling and content highlighting. Users will have the option to disable AI features entirely. Suleyman predicted that within years, AI companions will handle most browsing tasks while users provide oversight and feedback.

Microsoft is preparing a Publisher Content Marketplace to pay publishers when their work is used in AI products like Copilot. Neowin reports: Microsoft is reportedly discussing with select US publishers a pilot program for its so-called Publisher Content Marketplace, a system that pays publishers for their content when it gets used by AI products, starting with its own Copilot assistant. The PCM will launch with a limited number of partners before Microsoft hopes to expand the program over time. The company pitched the idea to publishing executives at an invite-only Partner Summit in Monaco last week. Microsoft was allegedly courting them with the message: "You deserve to be paid on the quality of your IP." No concrete launch date for the pilot was shared.

As Axios notes, Microsoft is the first major company to try to build a proper AI marketplace for publishers. Other AI labs like OpenAI have mostly focused on securing one-off licensing deals instead of building a platform for ongoing transactions. Companies like Cloudflare are also working on a more technical, network-level solution to this problem.