Microsoft's latest Windows 11 preview builds contain a bug that replaces the operating system's startup sound with Windows Vista's iconic boot chime from 2006. Microsoft acknowledged the bug in its release notes -- describing it as a "delightful blast from the past" -- and said it was working on a fix.

KDE isn't the only organization reaching out to " as Microsoft prepares to end support for Windows 10.

"Now, The Document Foundation, maker of LibreOffice, has also joined in to support the Endof10 initiative," reports the tech blog Neowin: The foundation writes: "You don't have to follow Microsoft's upgrade path. There is a better option that puts control back in the hands of users, institutions, and public bodies: Linux and LibreOffice. Together, these two programmes offer a powerful, privacy-friendly and future-proof alternative to the Windows + Microsoft 365 ecosystem."

It further adds the "real costs" of upgrading to Windows 11 as it writes:

"The move to Windows 11 isn't just about security updates. It increases dependence on Microsoft through aggressive cloud integration, forcing users to adopt Microsoft accounts and services. It also leads to higher costs due to subscription and licensing models, and reduces control over how your computer works and how your data is managed. Furthermore, new hardware requirements will render millions of perfectly good PCs obsolete.... The end of Windows 10 does not mark the end of choice, but the beginning of a new era. If you are tired of mandatory updates, invasive changes, and being bound by the commercial choices of a single supplier, it is time for a change. Linux and LibreOffice are ready — 2025 is the right year to choose digital freedom!"
The first words on LibreOffice's announcement? "The countdown has begun...."

Timothy B. Lee has written for the Washington Post, Vox.com, and Ars Technica — and now writes a Substack blog called "Understanding AI."

This week he visits recent research by computer scientists and legal scholars from Stanford, Cornell, and West Virginia University that found that Llama 3.1 70BÂ(released in July 2024) has memorized 42% of the first Harry Potter book well enough to reproduce 50-token excerpts at least half the time... The paper was published last month by a team of computer scientists and legal scholars from Stanford, Cornell, and West Virginia University. They studied whether five popular open-weight models — three from Meta and one each from Microsoft and EleutherAI — were able to reproduce text from Books3, a collection of books that is widely used to train LLMs. Many of the books are still under copyright... Llama 3.1 70B — a mid-sized model Meta released in July 2024 — is far more likely to reproduce Harry Potter text than any of the other four models....

Interestingly, Llama 1 65B, a similar-sized model released in February 2023, had memorized only 4.4 percent of Harry Potter and the Sorcerer's Stone. This suggests that despite the potential legal liability, Meta did not do much to prevent memorization as it trained Llama 3. At least for this book, the problem got much worse between Llama 1 and Llama 3. Harry Potter and the Sorcerer's Stone was one of dozens of books tested by the researchers. They found that Llama 3.1 70B was far more likely to reproduce popular books — such as The Hobbit and George Orwell's 1984 — than obscure ones. And for most books, Llama 3.1 70B memorized more than any of the other models...

For AI industry critics, the big takeaway is that — at least for some models and some books — memorization is not a fringe phenomenon. On the other hand, the study only found significant memorization of a few popular books. For example, the researchers found that Llama 3.1 70B only memorized 0.13 percent of Sandman Slim, a 2009 novel by author Richard Kadrey. That's a tiny fraction of the 42 percent figure for Harry Potter... To certify a class of plaintiffs, a court must find that the plaintiffs are in largely similar legal and factual situations. Divergent results like these could cast doubt on whether it makes sense to lump J.K. Rowling, Richard Kadrey, and thousands of other authors together in a single mass lawsuit. And that could work in Meta's favor, since most authors lack the resources to file individual lawsuits.
Why is it happening? "Maybe Meta had trouble finding 15 trillion distinct tokens, so it trained on the Books3 dataset multiple times. Or maybe Meta added third-party sources — such as online Harry Potter fan forums, consumer book reviews, or student book reports — that included quotes from Harry Potter and other popular books..."

"Or there could be another explanation entirely. Maybe Meta made subtle changes in its training recipe that accidentally worsened the memorization problem."

According to market analyst firm Canalys, enterprise adoption of AI is slowing due to unpredictable and often high costs associated with model inferencing in the cloud. Despite strong growth in cloud infrastructure spending, businesses are increasingly scrutinizing cost-efficiency, with some opting for alternatives to public cloud providers as they grapple with volatile usage-based pricing models. The Register reports: [Canalys] published stats that show businesses spent $90.9 billion globally on infrastructure and platform-as-a-service with the likes of Microsoft, AWS and Google in calendar Q1, up 21 percent year-on-year, as the march of cloud adoption continues. Canalys says that growth came from enterprise users migrating more workloads to the cloud and exploring the use of generative AI, which relies heavily on cloud infrastructure.

Yet even as organizations move beyond development and trials to deployment of AI models, a lack of clarity over the ongoing recurring costs of inferencing services is becoming a concern. "Unlike training, which is a one-time investment, inference represents a recurring operational cost, making it a critical constraint on the path to AI commercialization," said Canalys senior director Rachel Brindley. "As AI transitions from research to large-scale deployment, enterprises are increasingly focused on the cost-efficiency of inference, comparing models, cloud platforms, and hardware architectures such as GPUs versus custom accelerators," she added.

Canalys researcher Yi Zhang said many AI services follow usage-based pricing models that charge on a per token or API call basis. This makes cost forecasting hard as the use of the services scale up. "When inference costs are volatile or excessively high, enterprises are forced to restrict usage, reduce model complexity, or limit deployment to high-value scenarios," Zhang said. "As a result, the broader potential of AI remains underutilized." [...] According to Canalys, cloud providers are aiming to improve inferencing efficiency via a modernized infrastructure built for AI, and reduce the cost of AI services. The report notes that AWS, Azure, and Google Cloud "continue to dominate the IaaS and PaaS market, accounting for 65 percent of customer spending worldwide."

"However, Microsoft and Google are slowly gaining ground on AWS, as its growth rate has slowed to 'only' 17 percent, down from 19 percent in the final quarter of 2024, while the two rivals have maintained growth rates of more than 30 percent."

An anonymous reader shares a report: In less than three months' time, almost no civil servant, police officer or judge in Schleswig-Holstein will be using any of Microsoft's ubiquitous programs at work. Instead, the northern state will turn to open-source software to "take back control" over data storage and ensure "digital sovereignty," its digitalisation minister, Dirk Schroedter, told AFP. "We're done with Teams!" he said, referring to Microsoft's messaging and collaboration tool and speaking on a video call -- via an open-source German program, of course.

The radical switch-over affects half of Schleswig-Holstein's 60,000 public servants, with 30,000 or so teachers due to follow suit in coming years. The state's shift towards open-source software began last year. The current first phase involves ending the use of Word and Excel software, which are being replaced by LibreOffice, while Open-Xchange is taking the place of Outlook for emails and calendars.

Microsoft quietly teased its next-generation Xbox by showcasing its collaboration with Asus "to bring two Xbox Ally handhelds to the market later this year," writes The Verge's Tom Warren. From the report: The Xbox Ally handhelds run Windows, but the Xbox team has worked with Windows engineers to boot these PC handhelds into a full-screen Xbox UI. The Windows desktop doesn't even fully load, and you use the Xbox app UI as a launcher to get to all your games (even Steam titles) and apps like Discord. While the combination of Windows and Xbox here is intriguing, it's the way that Microsoft is positioning these devices that really caught my attention.

"This is an Xbox," said Microsoft during the reveal, clearly expanding its marketing push beyond a single console to every screen and device. It all felt like a true Xbox handheld reveal. There was even an 11-minute-long behind-the-scenes video on the Xbox Ally handhelds, filmed in a similar style to Microsoft's "Project Scorpio" Xbox One X reveal from nearly nine years ago. "This is a breakthrough moment for Xbox," Carl Ledbetter, a 30-year Microsoft design veteran, says in the video. Ledbetter helped design the original IntelliMouse, the Xbox 360 Slim, the Xbox One X, and plenty of other Microsoft devices. When Ledbetter is involved, you know it's more than just a simple partner project with Asus.

"For the first time, a player is going to be able to hold the power of the Xbox experience in their hand, and take it with them anywhere they want to go," says Xbox president Sarah Bond, in the same video. Microsoft thinks of the Xbox Ally handhelds as Xbox consoles with the freedom of Windows, and I think the next-gen Xbox is going to look very similar as a result. Related

An anonymous reader quotes a report from ZDNet: Denmark's Minister of Digitalization, Caroline Stage, has announced that the Danish government will start moving away from Microsoft Office to LibreOffice. Why? It's not because open-source is better, although I would argue that it is, but because Denmark wants to claim "digital sovereignty." In the States, you probably haven't heard that phrase, but in the European Union, digital sovereignty is a big deal and getting bigger.

A combination of security, economic, political, and societal imperatives is driving the EU's digital sovereignty moves. EU leaders are seeking to reduce Europe's dependence on foreign technology providers, primarily those from the United States, and to assert greater control over its digital infrastructure, data, and technological future. Why? Because they're concerned about who controls European data, who sets the rules, and who can potentially cut off access to essential services in times of geopolitical tension. "Money issues have also played a decisive role," writes ZDNet's Steven Vaughan-Nichols. "Copenhagen's Microsoft software bill has soared from 313 million kroner in 2018 to 538 million kroner -- about $53 million in 2023, a 72% increase in just five years.

David Heinemeier Hansson (DHH), a Dane, inventor of Ruby on Rails, and co-owner of the software developer company 37Signals, has said: "Denmark is one of the most highly digitalized countries in the world. It's also one of the most Microsoft-dependent. In fact, Microsoft is by far and away the single biggest dependency, so it makes perfect sense to start the quest for digital sovereignty there."

An anonymous reader quotes a report from Reuters: Indirect carbon emissions from the operations of four of the leading AI-focused tech companies rose on average by 150% from 2020-2023, due to the demands of power-hungry data centers, a United Nations report (PDF) said on Thursday. The use of artificial intelligence by Amazon, Microsoft, Alphabet and Meta drove up their global indirect emissions because of the vast amounts of energy required to power data centers, the report by the International Telecommunication Union (ITU), the U.N. agency for digital technologies, said.

Indirect emissions include those generated by purchased electricity, steam, heating and cooling consumed by a company. Amazon's operational carbon emissions grew the most at 182% in 2023 compared to three years before, followed by Microsoft at 155%, Meta at 145% and Alphabet at 138%, according to the report. The ITU tracked the greenhouse gas emissions of 200 leading digital companies between 2020 and 2023. [...] As investment in AI increases, carbon emissions from the top-emitting AI systems are predicted to reach up to 102.6 million tons of carbon dioxide equivalent per year, the report stated.

The data centres that are needed for AI development could also put pressure on existing energy infrastructure. "The rapid growth of artificial intelligence is driving a sharp rise in global electricity demand, with electricity use by data centers increasing four times faster than the overall rise in electricity consumption," the report found. It also highlighted that although a growing number of digital companies had set emissions targets, those ambitions had not yet fully translated into actual reductions of emissions. UPDATE: The headline has been revised to clarify that four leading AI-focused tech companies saw their operational emissions rise to 150% of their 2020 levels by 2023 -- a 50% increase, not a 150% one.

Starbucks is piloting a generative AI assistant called "Green Dot Assist" to streamline barista tasks and improve service speed, with plans for a broader rollout in fiscal 2026. The assistant is built on Microsoft Azure's OpenAI platform. CNBC reports: Instead of flipping through manuals or accessing Starbucks' intranet, baristas will be able to use a tablet behind the counter equipped with Green Dot Assist to get answers to a range of questions, from how to make an iced shaken espresso to troubleshooting equipment errors. Baristas can either type or verbally ask their queries in conversational language.

As the AI assistant evolves, Starbucks has even bigger plans for its next generation. Those ideas include automatically creating a ticket with IT for equipment issues or generating suggestions for a substitute when a barista calls out of work, according to [Starbucks Chief Technology Officer Deb Hall Lefevre]. [...] Lefevre said tenured baristas have been learning to use the new POS in as little as an hour. Plus, the technology can offer personalized recommendations and loyal customers' repeat orders, helping Starbucks achieve the personalized touch it's looking to bring back to its cafes. "It's just another example of how innovation technology is coming into service of our partners and making sure that we're doing all we can to simplify the operations, make their jobs just a little bit easier, maybe a little bit more fun, so that they can do what they do best," Lefevre told CNBC.

OpenAI plans to add Alphabet's Google cloud service to meet its growing needs for computing capacity, Reuters reported Tuesday, marking a surprising collaboration between two prominent competitors in the AI race. From the report: The deal, which has been under discussion for a few months, was finalized in May, one of the sources added. It underscores how massive computing demands to train and deploy AI models are reshaping the competitive dynamics in AI, and marks OpenAI's latest move to diversify its compute sources beyond its major supporter Microsoft, including its high-profile Stargate data center project.

It is a win for Google's cloud unit, which will supply additional computing capacity to OpenAI's existing infrastructure for training and running its AI models, sources said, who requested anonymity to discuss private matters. The move also comes as OpenAI's ChatGPT poses the biggest threat to Google's dominant search business in years, with Google executives recently saying that the AI race may not be winner-take-all.

An anonymous reader shares a report: Meta is in talks to make a multibillion-dollar investment into AI startup Scale AI, according to people familiar with the matter. The financing could exceed $10 billion in value, some of the people said, making it one of the largest private company funding events of all time.

[...] Scale AI, whose customers include Microsoft and OpenAI, provides data labeling services to help companies train machine-learning models and has become a key beneficiary of the generative AI boom. The startup was last valued at about $14 billion in 2024, in a funding round that included backing from Meta and Microsoft.

Nintendo's new Switch 2 console sold a record 3 million units after its launch Thursday. But then today Microsoft announced their own upcoming handheld gaming device that's Xbox-branded (and Windows-powered).

Working with ASUS' ROG division, they build a device that weighs more than the Nintendo Switch 2, and "is marginally heavier than the Steam Deck," reports Engadget. But "at least those grips look more ergonomic than those on the Nintendo Switch 2 (which is already cramping my hands) or even the Steam Deck." There are two variants of the handheld: the ROG Xbox Ally and ROG Xbox Ally X. Microsoft didn't reveal pricing, but the handhelds are coming this holiday... Critically, Microsoft and ROG aren't locking the devices to only playing Xbox games (though you can do that natively, via the cloud or by accessing an Xbox console remotely). You'll be able to play games from Battle.net and "other leading PC storefronts" too. Obviously, there's Game Pass integration here, as well as support for the Xbox Play Anywhere initiative, which enables you to play games with synced progress across a swathe of devices after buying them once...

There's a dedicated physical Xbox button that can bring up a Game Bar overlay, which seemingly makes it easy to switch between apps and games, tweak settings, start chatting with friends and more... You'll be able to mod games on either system as well.

The Xbox Ally is powered by the AMD Ryzen Z2 A Processor, and has 16GB of RAM and 512GB of SSD storage. The Xbox Ally X is the more powerful model. It has a AMD Ryzen AI Z2 Extreme processor, 24GB of RAM and 1TB of storage. They each have a microSD card reader, so you won't need to worry about shelling out for proprietary storage options to have extra space for your games... Both systems boast "HD haptics..." Both systems should be capable of outputting video to a TV or monitor, as they have two USB-C ports with support for DisplayPort 2.1 and Power Delivery 3.0.
"Microsoft has needed to respond to SteamOS ever since the Steam Deck launched three years ago," argues The Verge, "and it has steadily been tweaking its Xbox app and the Xbox Game Bar on Windows to make both more handheld-friendly..." But there was always a bigger overhaul of Windows required, and we're starting to see parts of that today. "The reality is that we've made tremendous progress on this over the last couple of years, and this is really the device that galvanized those teams and got everybody marching and working towards a moment that we're just really excited to put into the hands of players," says Roanne Sones, corporate vice president of gaming Devices and ecosystem at Xbox, in a briefing with The Verge...

I'll need to try this new interface fully to really get a feel for the Windows changes here, but Microsoft is promising that this isn't just lipstick on top of Windows. "This isn't surface-level changes, we've made significant improvements," says Potvin. "Some of our early testing with the components we've turned off in Windows, we get about 2GB of memory going back to the games while running in the full-screen experience."

TweakTown writes that the Switch 2 "has reportedly beaten the record for the most-sold console within 24 hours and is on track to shatter the two-month record," selling over 3 million units and tripling the PlayStation 4's previous launch day sales.

So Nintendo's first console in 8 years becomes "one of the most successful hardware releases of all time," writes Barron's, raising hopes for the future: [2017's original Switch] ultimately sold more than 152 million units... Switch 2's big advantage is its backward compatibility, allowing it to play current-generation Switch games and giving gamers solace that their large investments in software are intact... Many older Switch games also play better on the Switch 2, taking advantage of the extra horsepower.
Bloomberg writes that its bigger screen and faster chip "live up to the hype: Despite the hype and a $150 increase over the launch price for the original, the second-generation system manages to impress with faster performance, improved graphics, more comfortable ergonomics and enough tweaks throughout to make this feel like a distinctly new machine... This time, it's capable of outputting 4K resolution and more impactful HDR video to your TV screen... It's a bigger, faster, more polished version of a wildly successful gadget.
The "buzzy launch drew long lines" at retailers like Walmart, Target, Best Buy, and Gamestop, according to the article. (See the photos from AOL.com and USA Today.) "The era of spending hours waiting in line for the latest iPhone is long gone, but the debut of a new video game console is still a rare enough event that Nintendo fans didn't think twice about driving to retailers in the middle of the night to secure a Switch 2."

The Verge also opines that "the Switch 2's eShop is much better," calling it "way faster... with much less lag browsing through sections and loading up game pages."

Or, as Barron's puts it, "Ultimately, Nintendo is winning because it has a different strategy than its competition, the Sony PlayStation and Microsoft Xbox. Instead of trying to appeal to tech snobs like me, who are obsessed with graphics resolution and hardware statistics like teraflops, Nintendo focuses on joy and fun."

An anonymous reader quotes a report from KrebsOnSecurity: Ukraine has seen nearly one-fifth of its Internet space come under Russian control or sold to Internet address brokers since February 2022, a new study finds. The analysis indicates large chunks of Ukrainian Internet address space are now in the hands of shadowy proxy and anonymity services that are nested at some of America's largest Internet service providers (ISPs). The findings come in a report that examines how the Russian invasion has affected Ukraine's domestic supply of Internet Protocol Version 4 (IPv4) addresses. Researchers at Kentik, a company that measures the performance of Internet networks, found that while a majority of ISPs in Ukraine haven't changed their infrastructure much since the war began in 2022, others have resorted to selling swathes of their valuable IPv4 address space just to keep the lights on.

For example, Ukraine's incumbent ISP Ukrtelecom is now routing just 29 percent of the IPv4 address ranges that the company controlled at the start of the war, Kentik found. Although much of that former IP space remains dormant, Ukrtelecom told Kentik's Doug Madory they were forced to sell many of their address blocks "to secure financial stability and continue delivering essential services." "Leasing out a portion of our IPv4 resources allowed us to mitigate some of the extraordinary challenges we have been facing since the full-scale invasion began," Ukrtelecom told Madory.

Madory found much of the IPv4 space previously allocated to Ukrtelecom is now scattered to more than 100 providers globally, particularly at three large American ISPs -- Amazon (AS16509), AT&T (AS7018), and Cogent (AS174). Another Ukrainian Internet provider -- LVS (AS43310) -- in 2022 was routing approximately 6,000 IPv4 addresses across the nation. Kentik learned that by November 2022, much of that address space had been parceled out to over a dozen different locations, with the bulk of it being announced at AT&T. Ditto for the Ukrainian ISP TVCOM, which currently routes nearly 15,000 fewer IPv4 addresses than it did at the start of the war. Madory said most of those addresses have been scattered to 37 other networks outside of Eastern Europe, including Amazon, AT&T, and Microsoft.

OpenAI said it disrupted several attempts [non-paywalled source] from users in China to leverage its AI models for cyber threats and covert influence operations, underscoring the security challenges AI poses as the technology becomes more powerful. From a report: The Microsoft-backed company on Thursday published its latest report on disrupting malicious uses of AI, saying its investigative teams continued to uncover and prevent such activities in the three months since Feb. 21.

While misuse occurred in several countries, OpenAI said it believes a "significant number" of violations came from China, noting that four of 10 sample cases included in its latest report likely had a Chinese origin. In one such case, the company said it banned ChatGPT accounts it claimed were using OpenAI's models to generate social media posts for a covert influence operation. The company said a user stated in a prompt that they worked for China's propaganda department, though it cautioned it didn't have independent proof to verify its claim.

Announced in an internal memo from Microsoft CEO Satya Nadella, LinkedIn CEO Ryan Roslansky has been appointed to also lead the Office, Outlook, and Microsoft 365 Copilot teams as part of an internal AI reorganization. Roslansky will report to Rajesh Jha for Office while continuing to run LinkedIn independently under Nadella. The Verge reports: "LinkedIn remains a top priority and will continue to operate as an independent subsidiary," says Nadella in his memo. "This move brings us closer to the original vision we laid out nine years ago with the LinkedIn acquisition: connecting the world's economic graph with the Microsoft Graph. And I look forward to how Ryan will bring his product ethos and leadership to entertainment and devices." Sumit Chauhan and Gaurav Sareen, senior executives in the Office and Microsoft 365 teams, will remain on the entertainment and devices leadership team, but along with their teams they'll join Jon Friedman and the UX team to work directly for Roslansky.

Charles Lamanna and his BIC team are also moving to report to Rajesh Jha as part of an AI shakeup. "Charles has consistently kept us focused on what it takes to win in business applications and the agent layer, and I look forward to the impact he and his team will have in entertainment and devices," says Nadella. In a separate memo, Lamanna also announced that starting July 2nd Lili Cheng will take on the newly expanded role of CTO of the BIC team. Dan Lewis is also taking on the role of corporate vice president of Copilot Studio. "We are poised to reinvent every role and every business process, and start to reimagine organizations as composed of people and agents," says Lamanna in an internal memo.

Both the Lamanna and Roslansky moves are very interesting, as the business Copilot team and Microsoft 365 Copilot team have been in separate parts of Microsoft's sprawling AI and cloud teams up until this point. This has led to a situation where nobody really owns Copilot all up inside Microsoft, but now the separate leaders of Microsoft 365 Copilot and the business Copilot teams now both report to Rajesh Jha. The consumer Copilot will still be run by Microsoft AI CEO Mustafa Suleyman.

king*jojo shares a report: Linux desktop darling KDE is weighing in on the controversy around the impending demise of Windows 10 support with a lurid "KDE for Windows 10 Exiles" campaign. KDE's alarming "Exiles" page opens with the text "Your computer is toast" followed by a warning that Microsoft wants to turn computers running Windows 10 into junk from October 14.

"It may seem like it continues to work after that date for a bit, but when Microsoft stops support for Windows 10, your perfectly good computer will be officially obsolete." Beneath a picture of a pile of tech junk, including a rotary telephone and some floppy drives, KDE proclaims: "Windows 10 will degrade as more and more bugs come to light. With nobody to correct them, you risk being hacked. Your data, identity, and control over your device could be stolen."

OpenAI is expanding ChatGPT's enterprise capabilities with new integrations that connect the chatbot directly to business cloud services and productivity tools. The Microsoft-backed startup announced connectors for Dropbox, Box, SharePoint, OneDrive and Google Drive that allow ChatGPT to search across users' organizational documents and files to answer questions, such as helping analysts build investment theses from company slide decks.

The update includes meeting recording and transcription features that generate timestamped notes and suggest action items, competing directly with similar offerings from ClickUp, Zoom, and Notion. OpenAI also introduced beta connectors for HubSpot, Linear, and select Microsoft and Google tools for deep research reports, plus Model Context Protocol support for Pro, Team, and Enterprise users.

theodp writes: Way back in 2010, Microsoft and Google teamed with nonprofit partners to launch Computing in the Core, an advocacy coalition whose mission was "to strengthen computing education and ensure that it is a core subject for students in the 21st century." In 2013, Computing in the Core was merged into Code.org, a new tech-backed-and-directed nonprofit. And in 2015, Code.org declared 'Mission Accomplished' with the passage of the Every Student Succeeds Act, which elevated computer science to a core academic subject for grades K-12.

Fast forward to June 2025 and Code.org has changed its About page to reflect a new AI mission that's near-and-dear to the hearts of Code.org's tech giant donors and tech leader Board members: "Code.org is a nonprofit working to make computer science (CS) and artificial intelligence (AI) a core part of K-12 education for every student." The mission change comes as tech companies are looking to chop headcount amid the AI boom and just weeks after tech CEOs and leaders launched a new Code.org-orchestrated national campaign to make CS and AI a graduation requirement.

Code generation startups are attracting extraordinary investor interest two years after ChatGPT's launch, with companies like Cursor raising $900 million at a $10 billion valuation despite operating with negative gross margins. OpenAI is reportedly in talks to acquire Windsurf, maker of the Codeium coding tool, for $3 billion, while the startup generates $50 million in annualized revenue from a product launched just seven months ago.

These "vibe coding" platforms allow users to write software using plain English commands, attempting to fundamentally change how code gets written. Cursor went from zero to $100 million in recurring revenue in under two years with just 60 employees, though both major startups spend more money than they generate, Reuters reports, citing investor sources familiar with their operations.

The surge comes as major technology giants report significant portions of their code now being AI-generated -- Google claims over 30% while Microsoft reports 20-30%. Meanwhile, entry-level programming positions have declined 24% as companies increasingly rely on AI tools to handle basic coding tasks previously assigned to junior developers.