The S&P 500 index tracks 500 of the largest companies listed on U.S. stock exchanges, according to Wikipedia.

And Friday that index "hit an all-time closing high," reports the Washington Post, "reflecting the staggering gains of a coterie of Big Tech firms against the backdrop of a surprisingly stable economy." The broad-based index closed at 4,839.81 — up more than 1 percent for the day — surpassing the previous closing record set in January of 2022. The stock market surged upward in the final quarter of 2023 as evidence gathered that the [U.S.] economy has not tipped into recession territory, despite the Federal Reserve's campaign to raise interest rates. At the same time analysts point to an AI-driven frenzy on Wall Street that rivals the dot-com boom of the late '90s, when investors sought to capitalize on the transformative gains brought by the early internet.

A booming S&P 500 is a welcome sign for the millions of Americans who invest in the index through retirement accounts. Investors in 2022 had about $5.7 trillion in assets passively indexed to the S&P 500 and another $5.7 trillion in funds that use it as a benchmark comparison, according to S&P Global. Voters' feelings about the stock market and economy could affect the 2024 election...

Tech companies, including a few names heavily associated with artificial intelligence work, led the S&P 500's gains. Seven of the largest tech stocks known as the "Magnificent Seven" — Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta — increased 75 percent on average in 2023 and represented 30 percent of the index's total market value at the end of 2023. "AI is the new dot-com," said Michael Farr of Farr, Miller and Washington. "It's the new magic that is going to change the world that we don't really understand yet. But we all understand it's very powerful." Those seven stocks made up around half of the S&P 500's growth last year. Nvidia, whose high-performance chips have become popular for AI uses, had the best year of the bunch, at one point gaining nearly $190 billion in value overnight, a 24 percent gain.
In the last 12 months, the index has risen 21.83%.

The article notes that "Although the rest of the market has lagged Big Tech, analysts say promising economic data from recent months has boosted optimism about the broader economy."

In a regulatory filing today, Microsoft said that a Russian intelligence group hacked into some of the company's top executives' email accounts. CNBC reports: Nobelium, the same group that breached government supplier SolarWinds in 2020, carried out the attack, which Microsoft detected last week, according to the company. The announcement comes after new U.S. requirements for disclosing cybersecurity incidents went into effect. A Microsoft spokesperson said that while the company does not believe the attack had a material impact, it still wanted to honor the spirit of the rules.

In late November, the group accessed "a legacy non-production test tenant account," Microsoft's Security Response Center wrote in the blog post. After gaining access, the group "then used the account's permissions to access a very small percentage of Microsoft corporate email accounts, including members of our senior leadership team and employees in our cybersecurity, legal, and other functions, and exfiltrated some emails and attached documents," the corporate unit wrote. The company's senior leadership team, including finance chief Amy Hood and president Brad Smith, regularly meets with CEO Satya Nadella. Microsoft said it has not found signs that Nobelium had accessed customer data, production systems or proprietary source code.

The U.S. government and Microsoft consider Nobelium to be part of the Russian foreign intelligence service SVR. The hacking group was responsible for one of the most prolific breaches in U.S. history when it added malicious code to updates to SolarWinds' Orion software, which some U.S. government agencies were using. Microsoft itself was ensnared in the hack. Nobelium, also known as APT29 or Cozy Bear, is a sophisticated hacking group that has attempted to breach the systems of U.S. allies and the Department of Defense. Microsoft also uses the name Midnight Blizzard to identify Nobelium. It was also implicated alongside another Russian hacking group in the 2016 breach of the Democratic National Committee's systems.

Microsoft is getting ready to place Teams meeting reminders on the Start menu in Windows 11. From a report: The software giant has started testing a new build of Windows 11 with Dev Channel testers that includes a Teams meeting reminder in the recommended section of the Start menu. Microsoft is also testing an improved way to instantly access new photos and screenshots from Android devices. [...] The Teams meeting reminders will be displayed alongside the regular recently used and recommended file list on the Start menu, and they won't be displayed for non-business users of Windows 11.

An anonymous reader quotes a report from Reuters: OpenAI's CEO Sam Altman on Tuesday said an energy breakthrough is necessary for future artificial intelligence, which will consume vastly more power than people have expected. Speaking at a Bloomberg event on the sidelines of the World Economic Forum's annual meeting in Davos, Altman said the silver lining is that more climate-friendly sources of energy, particularly nuclear fusion or cheaper solar power and storage, are the way forward for AI. "There's no way to get there without a breakthrough," he said. "It motivates us to go invest more in fusion."

In 2021, Altman personally provided $375 million to private U.S. nuclear fusion company Helion Energy, which since has signed a deal to provide energy to Microsoft in future years. Microsoft is OpenAI's biggest financial backer and provides it computing resources for AI. Altman said he wished the world would embrace nuclear fission as an energy source as well. Further reading: Microsoft Needs So Much Power to Train AI That It's Considering Small Nuclear Reactors

According to StatCounter, Bing's market share grew less than 1% since launching Bing Chat (now known as Copilot) roughly a year ago. From a report: Bloomberg reported (paywalled) on the StatCounter data, saying, "But Microsoft's search engine ended 2023 with just 3.4% of the global search market, according to data analytics firm StatCounter, up less than 1 percentage point since the ChatGPT announcement." Google still dominates the global search market with a 91.6% market share, followed by Bing's 3.4%, Yandex's 1.6% and Yahoo's 1.1%. "Other" search engines accounted for a total of just 2.2% of the global search market.

You can view the raw chart and data from StatCounter here.

Google announced today that it will invest $1 billion building a data center near London. Reuters reports: The data centre, located on a 33-acre (13-hectare) site bought by Google in 2020, will be located in the town of Waltham Cross, about 15 miles north of central London, the Alphabet-owned company said in a statement. The British government, which is pushing for investment by businesses to help fund new infrastructure, particularly in growth industries like technology and artificial intelligence, described Google's investment as a "huge vote of confidence" in the UK.

"Google's $1 billion investment is testament to the fact that the UK is a centre of excellence in technology and has huge potential for growth," Prime Minister Rishi Sunak said in the Google statement. The investment follows Google's $1 billion purchase of a central London office building in 2022, close to Covent Garden, and another site in nearby King's Cross, where it is building a new office and where its AI company DeepMind is also based. In November, Microsoft announced plans to pump $3.2 billion into Britain over the next three years.

OpenAI's stated mission is to create the artificial general intelligence, or AGI. Demis Hassabis, the leader of Google's AI efforts, has the same goal. Now, Meta CEO Mark Zuckerberg is entering the race. From a report: While he doesn't have a timeline for when AGI will be reached, or even an exact definition for it, he wants to build it. At the same time, he's shaking things up by moving Meta's AI research group, FAIR, to the same part of the company as the team building generative AI products across Meta's apps. The goal is for Meta's AI breakthroughs to more directly reach its billions of users. "We've come to this view that, in order to build the products that we want to build, we need to build for general intelligence," Zuckerberg tells me in an exclusive interview. "I think that's important to convey because a lot of the best researchers want to work on the more ambitious problems."

[...] No one working on AI, including Zuckerberg, seems to have a clear definition for AGI or an idea of when it will arrive. "I don't have a one-sentence, pithy definition," he tells me. "You can quibble about if general intelligence is akin to human level intelligence, or is it like human-plus, or is it some far-future super intelligence. But to me, the important part is actually the breadth of it, which is that intelligence has all these different capabilities where you have to be able to reason and have intuition." He sees its eventual arrival as being a gradual process, rather than a single moment. "I'm not actually that sure that some specific threshold will feel that profound." As Zuckerberg explains it, Meta's new, broader focus on AGI was influenced by the release of Llama 2, its latest large language model, last year. The company didn't think that the ability for it to generate code made sense for how people would use a LLM in Meta's apps. But it's still an important skill to develop for building smarter AI, so Meta built it anyway. External research has pegged Meta's H100 shipments for 2023 at 150,000, a number that is tied only with Microsoft's shipments and at least three times larger than everyone else's. When its Nvidia A100s and other AI chips are accounted for, Meta will have a stockpile of almost 600,000 GPUs by the end of 2024, according to Zuckerberg.

Microsoft today made Reading Coach, its AI-powered tool that provides learners with personalized reading practice, available at no cost to anyone with a Microsoft account. From a report: As of this morning, Reading Coach is accessible on the web in preview -- a Windows app is forthcoming. And soon (in late spring), Reading Coach will integrate with learning management systems such as Canva, Microsoft says. Reading Coach builds on Reading Progress, a plug-in for the education-focused version of Microsoft Teams, Teams for Education, designed to help teachers foster reading fluency in their students. Inspired by the success of Reading Progress (evidently), Microsoft launched Reading Coach in 2022 as a part of Teams for Education and Immersive Reader, the company's cross-platform assistive service for language and reading comprehension.

Google researchers say they have evidence that a notorious Russian-linked hacking group -- tracked as "Cold River" -- is evolving its tactics beyond phishing to target victims with data-stealing malware. From a report: Cold River, also known as "Callisto Group" and "Star Blizzard," is known for conducting long-running espionage campaigns against NATO countries, particularly the United States and the United Kingdom. Researchers believe the group's activities, which typically target high-profile individuals and organizations involved in international affairs and defense, suggest close ties to the Russian state. U.S. prosecutors in December indicted two Russian nationals linked to the group.

Google's Threat Analysis Group (TAG) said in new research this week that it has observed Cold River ramping up its activity in recent months and using new tactics capable of causing more disruption to its victims, predominantly targets in Ukraine and its NATO allies, academic institutions and non-government organizations. These latest findings come soon after Microsoft researchers reported that the Russia-aligned hacking group had improved its ability to evade detection. In research shared with TechCrunch ahead of its publication on Thursday, TAG researchers say that Cold River has continued to shift beyond its usual tactic of phishing for credentials to delivering malware via campaigns using PDF documents as lures.

When Microsoft announced it was baking ChatGPT into its Bing search engine last February, bullish analysts declared the move an "iPhone moment" that could upend the search market and chip away at Google's dominance. "The entire search category is now going through a sea change," Chief Executive Officer Satya Nadella said at the time. "That opportunity comes very few times." Almost a year later, the sea has yet to change. Bloomberg: The new Bing -- powered by OpenAI's generative AI technology -- dazzled internet users with conversational replies to queries asked in a natural way. But Microsoft's search engine ended 2023 with just 3.4% of the global search market, according to data analytics firm StatCounter, up less than 1 percentage point since the ChatGPT announcement.

Bing has long struggled for relevance and attracted more mockery than recognition over the years as a serious alternative to Google. Multiple rebrandings and redesigns since its 2009 debut did little to boost Bing's popularity. A month before Microsoft infused the search engine with generative AI, people were spending 33% less time using it than they had 12 months earlier, according to SensorTower. The ChatGPT reboot at least helped reverse those declines. In the second quarter of 2023, US monthly active users more than doubled year over year to 3.1 million, according to a Bloomberg Intelligence analysis of SensorTower mobile app data. Overall, users were spending 84% more time on the search engine, the data show. By year-end, Bing's monthly active users had increased steadily to 4.4 million, according to SensorTower.

Android Authority combed through the code of Edge browser (for Android) to find what may be hints for things to come to Copilot: Microsoft has offered its Copilot AI service (formerly Bing Chat) on mobile devices for a while. The service has long been free to use, allowing you to speak to a chatbot, generate AI images, and more. Now, recent Edge browser updates for Android hint at a so-called Copilot Pro option. [...] But what should you expect from this Pro tier? Fortunately, a string also mentions Copilot Pro perks. This includes access to the latest AI models, priority access for quicker answers, and "high-quality" image generation. Update: Microsoft has officially launched Copilot Pro. The subscription provides access to AI-powered features inside Office apps like Word, Excel, and PowerPoint alongside priority access to the latest OpenAI models, and the ability to build your own Copilot GPT.

"Sal Kahn, the founder and CEO of Khan Academy predicted last year that AI tutoring bots would soon revolutionize education," writes long-time Slashdot reader theodp: theodp writes: His vision of tutoring bots tapped into a decades-old Silicon Valley dream: automated teaching platforms that instantly customize lessons for each student. Proponents argue that developing such systems would help close achievement gaps in schools by delivering relevant, individualized instruction to children faster and more efficiently than human teachers ever could. But some education researchers say schools should be wary of the hype around AI-assisted instruction, warning that generative AI tools may turn out to have harmful or "degenerative" effects on student learning.
A ChatGPT-powered tutoring bot was tested last spring at the Khan Academy — and Bill Gates is enthusiastic about that bot and AI education in general (as well as the Khan Academy and AI-related school curriculums). From the original submission: Explaining his AI vision in November, Bill Gates wrote, "If a tutoring agent knows that a kid likes [Microsoft] Minecraft and Taylor Swift, it will use Minecraft to teach them about calculating the volume and area of shapes, and Taylor's lyrics to teach them about storytelling and rhyme schemes. The experience will be far richer—with graphics and sound, for example—and more personalized than today's text-based tutors."

The New York Times article notes that similar enthusiasm greeted automated teaching tools in the 1960s, but predictions that that the mechanical and electronic "teaching machines' — which were programmed to ask students questions on topics like spelling or math — would revolutionize education didn't pan out.

So, is this time different?

Microsoft has started testing a change to Windows 11 that will see its AI-powered Copilot feature automatically open when Windows starts on "widescreen devices." From a report: The change is being tested as part of Microsoft's latest Dev Channel preview of Windows 11, allowing Windows testers to provide feedback ahead of a broader rollout. "We are trying out opening Copilot automatically when Windows starts on widescreen devices with some Windows Insiders in the Dev Channel," says Microsoft in a blog post. The company doesn't make it clear what exactly a "widescreen" device is, but the Windows 11 setting itself says Copilot will automatically open "when you're using a wider screen." So I'm assuming this is limited to ultrawide monitors and less traditional desktop resolutions, but I've asked Microsoft to clarify and will update you accordingly.

The stock market has a new, but familiar, monarch. Microsoft's AI-powered stock rally has made the software giant the largest U.S. company by market value, surpassing Apple for the first time since November 2021. WSJ: Shares edged higher Thursday morning, bringing Microsoft's market value to nearly $2.87 trillion. Apple, meanwhile, fell 1%, pulling its market capitalization just below that threshold. Either Apple or Microsoft has held the title since Feb. 4, 2019, according to Dow Jones Market Data. Microsoft's stock has been on the rise for the past year thanks to the continued growth of its cloud computing division, even as major competitors like Amazon and Google have experienced a gradual slowdown in sales growth.

An anonymous reader shares a report: The cost of switching between cloud-computing providers has long drawn complaints, with the services derided as "roach motels" that let businesses check in but not out. Now Google is taking steps to change that. Effective immediately, the company is eliminating fees levied on customers who want to leave its cloud for a rival service -- a policy shift that may pressure competitors Amazon and Microsoft to do the same.

The move follows intensifying scrutiny of cloud services by regulators and lawmakers around the world. UK antitrust authorities launched a probe that is looking at such penalties, and the fees emerged as a key issue when the US Federal Trade Commission asked for public comments on a variety of cloud concerns. Google Vice President Amit Zavery, who helps oversee the cloud business, said switching fees only represent about 2% of the total costs of migrating to a new provider -- and don't deter many clients from moving their data.

An anonymous reader quotes a report from the New York Times: When Microsoft opened an advanced research lab in Beijing in 1998, it was a time of optimism about technology and China. The company hired hundreds of researchers for the lab, which pioneered Microsoft's work in speech, image and facial recognition and the kind of artificial intelligence that later gave rise to online chatbots likeChatGPT. The Beijing operation eventually became one of the most important A.I. labs in the world. Bill Gates, Microsoft's co-founder, called it an opportunity to tap China's "deep pool of intellectual talent." But as tensions between the United States and China have mounted over which nation will lead the world's technological future, Microsoft's top leaders -- including Satya Nadella, its chief executive, and Brad Smith, its president -- have debated what to do with the prized lab for at least the past year, four current and former Microsoft employees said.

The company has faced questions from U.S. officials over whether maintaining a 200-person advanced technologies lab in China is tenable, the people said. Microsoft said it had instituted guardrails at the lab, restricting researchers from politically sensitive work. The company, which is based in Redmond, Wash., said it had also opened an outpost of the lab in Vancouver, British Columbia, and would move some researchers from China to the location. The outpost is a backup if more researchers need to relocate, two people said. The idea of shutting down or moving the lab has come up, but Microsoft's leaders support continuing it in China, four people said. "We are as committed as ever to the lab and the world-class research of this team," Peter Lee, who leads Microsoft Research, a network of eight labs across the world, said in a statement. Using the lab's formal name, he added, "There has been no discussion or advocacy to close Microsoft Research Asia, and we look forward to continuing our research agenda."

Harry McCracken, writing for FastCompany: Recently, Microsoft built a clock. Well, "built" may be overstating things. Members of the company's quantum computing team found a small digital clock in a wood case on Amazon -- the kind you might mistake for a nicer-than-usual trade show tchotchke. They hacked it to run off two experimental batteries they'd created in collaboration with staffers at the U.S. Department of Energy's Pacific Northwest National Laboratory (PNNL). Then they dressed up its enclosure by adding the logo of Azure Quantum Elements, the Microsoft platform for AI-enhanced scientific discovery that had been instrumental in developing the new battery technology.

The point of this little DIY project was to prove the batteries worked in a visceral way: "You want to have a wow moment," explains Brian Bilodeau, the head of partnerships, strategy, and operations for Azure Quantum. And the person the quantum team hoped to wow was Microsoft CEO Satya Nadella. Not that getting Nadella's attention was such a daunting prospect. Throwing vast amounts of Azure high-performance computing (HPC) resources at a big, hairy technical challenge such as materials research is the sort of challenge he's predisposed to take a personal interest in. Still, the tangible evidence of success made for a memorable moment: "I was very, very excited to see it come through," Nadella remembers.

The coin-sized CR2032 batteries powering the clock looked like the ones you might find in a pocket calculator or garage door opener. But on the inside, they used a solid-state electrolyte that replaces 70% of the lithium in garden-variety batteries with sodium. That holds the potential to address multiple issues with lithium batteries as we know them: their limited life on a charge, shrinking capacity over time, subpar performance in extreme temperatures, and risk of catching fire or even exploding. In addition, reducing lithium use in favor of cheap, plentiful sodium could be a boon to the fraught battery supply chain. With further development, the new material could benefit the myriad aspects of modern life that depend on batteries, from smartphones to EVs to the power grid. But Microsoft, being Microsoft, regards all this promise first and foremost as proof of Azure Quantum Elements' usefulness to the customers it's designed to serve. Unveiled last June, the cloud service is currently a "private preview" being tested by organizations such as Britain's Johnson Matthey, which is using it to help design catalytic converters and hydrogen fuel cells.

Emilia David reports via The Verge: OpenAI has publicly responded to a copyright lawsuit by The New York Times, calling the case "without merit" and saying it still hoped for a partnership with the media outlet. In a blog post, OpenAI said the Times "is not telling the full story." It took particular issue with claims that its ChatGPT AI tool reproduced Times stories verbatim, arguing that the Times had manipulated prompts to include regurgitated excerpts of articles. "Even when using such prompts, our models don't typically behave the way The New York Times insinuates, which suggests they either instructed the model to regurgitate or cherry-picked their examples from many attempts," OpenAI said.

OpenAI claims it's attempted to reduce regurgitation from its large language models and that the Times refused to share examples of this reproduction before filing the lawsuit. It said the verbatim examples "appear to be from year-old articles that have proliferated on multiple third-party websites." The company did admit that it took down a ChatGPT feature, called Browse, that unintentionally reproduced content. However, the company maintained its long-standing position that in order for AI models to learn and solve new problems, they need access to "the enormous aggregate of human knowledge." It reiterated that while it respects the legal right to own copyrighted works -- and has offered opt-outs to training data inclusion -- it believes training AI models with data from the internet falls under fair use rules that allow for repurposing copyrighted works. The company announced website owners could start blocking its web crawlers from accessing their data on August 2023, nearly a year after it launched ChatGPT. OpenAI stills hopes to form a "constructive partnership with The New York Times and respect its long history," the company said.

Last month, OpenAI struck an unprecedented deal with Politico parent company Axel Springer, allowing ChatGPT to summarize news stories from Politico and Business Insider.

An anonymous reader quotes a report from Ars Technica: In April, Microsoft announced that it would stop selling Microsoft-branded computer peripherals. Today, Onward Brands announced that it's giving those discarded Microsoft-stamped gadgets a second life under new branding. Products like the Microsoft Ergonomic Keyboard will become Incase products with "Designed by Microsoft" branding. Beyond the computer accessories saying "Designed by Microsoft," they should be the same keyboards, mice, webcams, headsets, and speakers, Onward, Incase's parent company, said, per The Verge. Onward said its Incase brand will bring back 23 Microsoft-designed products in 2024 and hopes for availability to start in Q2. Incase also plans to launch an ergonomic keyboard that Microsoft designed but never released. Onward CEO Charlie Tebele told The Verge that there's "potential" for Incase to release even more designs Microsoft never let us see.

The return of Microsoft peripheral designs resurrects (albeit in a new form) a line of computer gear started in 1983 when Microsoft released its first mouse, the Microsoft Mouse. Neither Onward nor Microsoft shared the full terms of their licensing agreement, but Onward claims that Incase will leverage the same supply chain and manufacturing components that Microsoft did, The Verge noted. "Microsoft will still retain ownership of its designs, so it could potentially bring back classic mice or keyboards itself in the future or continue to renew its license to Incase," The Verge reported, pointing out that Onward isn't licensing every single one of Microsoft's computer peripherals. Some classics, like the Intellimouse or its modern iterations, for example, don't make the Incase reboot list. For its part, Microsoft is still "convicted on going under one single" Surface brand, Nancie Gaskill, general manager of Surface, told The Verge. Further reading: Microsoft Adding New Key To PC Keyboards For First Time Since 1994

"As Microsoft stock rises and Apple's falls over analysts expectation of slowing iPhone demand, the two firms are once more within $100 billion of each other — the smallest gap in over two years..." writes the blog Apple Insider: In August 2020, Apple became the first publicly-traded US company to reach a $2 trillion market cap, and Microsoft became the second one in June 2021. Later in October 2021, Microsoft took over the top spot, and for a time was move valuable than Apple by $100 billion. While the values of the two firms have continually changed, Microsoft is now worth just $100 billion less than Apple, according to MarketWatch. Microsoft is valued at $2.73 trillion, while Apple — fallen from its recent $3 trillion high — is currently at $2.83 trillion.

MarketWatch notes that Microsoft's stock rose 57% in 2023, compared to Apple's which rose 48%. Microsoft shares have also reportedly seen what are described as slimmer losses at the start of 2024. Apple, on the other hand, has seen its shares take a considerable drop in recent days. The first hit was taken following a claim by Barclays that iPhone demand is weakening and that the iPhone 16 range will not offer any compelling new features to tempt upgraders.

The analyst view that Apple is dependent on iPhone sales is part of why Microsoft is doing better. Analysts see Microsoft has being less attached to any hardware, and more attached to subscription software such as Office 365, and so therefore less attached to any falling demand for phones or computers. And, Microsoft has launched an AI tool in Copilot, while Apple has not unveiled any similar ChatGPT-style app or service.