alternative_right writes: Austria's armed forces have switched from Microsoft's Office programs to the open-source LibreOffice package. The reason for this is not to save on software license fees for around 16,000 workstations. "It was very important for us to show that we are doing this primarily (...) to strengthen our digital sovereignty, to maintain our independence in terms of ICT infrastructure and (...) to ensure that data is only processed in-house," emphasizes Michael Hillebrand from the Austrian Armed Forces' Directorate 6 ICT and Cyber.

This is because processing data in external clouds is out of the question for the Austrian Armed Forces, as Hillebrand explained on ORF radio station O1. It was already apparent five years ago that Microsoft Office would move to the cloud. Back then, in 2020, the decision-making process for the switch began and was completed in 2021.

Security researcher Dirk-jan Mollema discovered two vulnerabilities in Microsoft's Entra ID identity platform that could have granted attackers administrative access to virtually all Azure customer accounts worldwide. The flaws involved legacy authentication systems -- Actor Tokens issued by Azure's Access Control Service and a validation failure in the retiring Azure Active Directory Graph API.

Mollema reported the vulnerabilities to Microsoft on July 14. Microsoft released a global fix three days later and found no evidence of exploitation. The vulnerabilities would have allowed attackers to impersonate any user across any Azure tenant and access all Microsoft services using Entra ID authentication. Microsoft confirmed the fixes were fully implemented by July 23 and added additional security measures in August as part of its Secure Future Initiative. The company issued a CVE on September 4.

An anonymous reader shares a report: Microsoft is adding a whole load of AI agents to Teams today, promising Copilot assistants for every channel, meeting, and community. The new agents will also work across SharePoint and Viva Engage, and are rolling out for Microsoft 365 Copilot users.

Facilitator agents will now sit in on Teams meetings, creating agendas, taking notes, and answering questions. Agents can also suggest time allotments for different meeting topics -- letting participants know if they're running over -- and create documents and tasks. A mobile version is designed to be activated "with a single tap" so you can make sure the agent doesn't miss out on "a quick hallway chat or a spontaneous in-person sync." Channel agents are designed to answer questions based on a channel's previous conversations and meetings and can also generate status reports for a project the same way.

Microsoft is now prioritizing Anthropic's Claude 4 over OpenAI's GPT-5 in Visual Studio Code's auto model feature, signaling a quiet but clear shift in preference. The Verge reports: "Based on internal benchmarks, Claude Sonnet 4 is our recommended model for GitHub Copilot," said Julia Liuson, head of Microsoft's developer division, in an internal email in June. While that guidance was issued ahead of the GPT-5 release, I understand Microsoft's model guidance hasn't changed.

Microsoft is also making "significant investments" in training its own AI models. "We're also going to be making significant investments in our own cluster. So today, MAI-1-preview was only trained on 15,000 H100s, a tiny cluster in the grand scheme of things," said Microsoft AI chief Mustafa Suleyman, in an employee-only town hall last week.

Microsoft is also reportedly planning to use Anthropic's AI models for some features in its Microsoft 365 apps soon. The Information reports that the Microsoft 365 Copilot will be "partly powered by Anthropic models," after Microsoft found that some of these models outperformed OpenAI in Excel and PowerPoint.

Microsoft will invest $30 billion in the U.K. through 2028 to expand AI infrastructure and operations, including building the country's largest supercomputer with 23,000 GPUs in partnership with Nscale. CNBC reports: On a call with reporters on Tuesday, Microsoft President Brad Smith said his stance on the U.K. has warmed over the years. He previously criticized the country over its attempt in 2023 to block the tech giant's $69 billion acquisition of video game developer Activision-Blizzard. The deal was cleared by the U.K.s competition regulator later that year.

"I haven't always been optimistic every single day about the business climate in the U.K.," Smith said. However, he added, "I am very encouraged by the steps that the government has taken over the last few years." "Just a few years ago, this kind of investment would have been inconceivable because of the regulatory climate then and because there just wasn't the need or demand for this kind of large AI investment," Smith said. Microsoft's announcement comes as President Donald Trump embarks on a state visit to Britain where he's expected to sign a new deal with U.K. Prime Minister Keir Starmer "to unlock investment and collaboration in AI, Quantum, and Nuclear technologies," the government said in a statement late Tuesday.

Consumer Reports has urged Microsoft to keep supporting Windows 10 beyond its October 2025 cutoff, saying the move will "strand millions of consumers" who have machines incompatible with Windows 11. The Verge reports: As noted by Consumer Reports, data suggests that around 46.2 percent of people around the world still use Windows 10 as of August 2025, while around 200 to 400 million PCs can't be upgraded to Windows 11 due to missing hardware requirements.

In the letter, Consumer Reports calls Microsoft "hypocritical" for urging customers to upgrade to Windows 11 to bolster cybersecurity, but then leaving Windows 10 devices susceptible to cyberattacks. It also calls out the $30 fee Microsoft charges customers for "a mere one-year extension to preserve their machine's security," as well as the free support options that force people to use Microsoft products, allowing the company to "eke out a bit of market share over competitors."

Consumer Reports asks that Microsoft continue providing support for Windows 10 computers for free until more people have upgraded to Windows 11.

AI will enable three to four-day workweeks, Zoom CEO Eric Yuan told The New York Times, joining Microsoft's Bill Gates, Nvidia's Jensen Huang and JPMorgan's Jamie Dimon in predicting shorter schedules. Yuan also acknowledged AI will eliminate some positions, particularly entry-level engineering roles where AI can write code, but argued new opportunities will emerge managing AI agents. Gates previously suggested two to three-day weeks within 10 years during a February appearance on The Tonight Show.

Microsoft is adding the free Microsoft 365 Copilot Chat and agents to Office apps for all Microsoft 365 business users today. From a report: Word, Excel, PowerPoint, Outlook, and OneNote are all being updated with a Copilot Chat sidebar that will help draft documents, analyze spreadsheets, and more without needing an additional Microsoft 365 Copilot license.

"Copilot Chat is secure AI chat grounded in the web -- and now, it's available in the Microsoft 365 apps," explains Seth Patton, general Manager of Microsoft 365 Copilot product marketing. "It's content aware, meaning it quickly understands what you're working on, tailoring answers to the file you have open. And it's included at no additional cost for Microsoft 365 users."

While this free version of Copilot will rewrite documents, provide summaries, and help create slides in PowerPoint, the $30 per month, per user Microsoft 365 Copilot license will still have the best integration in Office apps. The Microsoft 365 Copilot license is also not limited to a single document, and can reason over entire work data.

TechCrunch reports: Thanks to a pledge to unbundle its corporate messaging app Teams from its productivity suites, Microsoft has managed to slip unscathed through a major antitrust investigation by the European Commission that could have resulted in massive fines for the tech giant.

The Commission on Friday okayed Microsoft's concessions to address the EU's competition concerns over the company including Teams along with the rest of its Office productivity suite for free, concluding a multi-year investigation that was sparked by complaints from rival office messaging app Slack in 2020. Microsoft has promised that for the next seven years, it will provide Microsoft 365 and Office 365 without Teams at a lower price and will let customers choose whether they want to pay more to add the collaboration app to the suites...

Microsoft is voluntarily offering some versions of both its productivity suites without Teams at a 50% lower price compared to versions that bundle the app, worldwide. And Microsoft dodged punitive measures and a big fine, as the Commission's penalties for breaching competition rules can reach up to 10% of annual global revenue — which, considering the tech giant last year recorded $245 billion in revenue, would have been truckloads of money.
The article adds one more interesting detail. "The Commission has also managed to get Microsoft to agree to open up its APIs to enable interoperability for key features between its suite and third-party messaging and collaboration tools, as well as let them export their data out of teams for the next five years..." The Commission's official announcement says this will "open up the market for other providers of communication and collaboration tools in Europe."

And Microsoft will also allow customers with long-term licenses the option of switching to a suite switch without Teams...

Paramount and Comcast's NBCUniversal are joining Microsoft in telling employees "they could face consequences if they don't return to the office more frequently," reports the Washington Post: NBCUniversal sent a memo to its employees telling them to return to the office four days a week starting in January [with the option to work remotely on Fridays]. Last week, Paramount told employees to return five days a week, with the first group starting in January. Both Paramount and NBCUniversal said they would offer severance packages to eligible employees who are unwilling or unable to make the switch... Companies have been cracking down on flexible work for the past several years, with Goldman Sachs being one of the first to implement a five-day office policy. Since then, others have joined in including Amazon, AT&T, JPMorgan Chase and the federal government...

Overall, the number of people working full time in office hasn't changed much over the past couple of years. About 61.7 percent of salaried employees worked from an office full time in August, according to data from university researchers Jose Maria Barrero, Nicholas Bloom and Steven J. Davis, who are studying the matter. That is down one percentage point from August 2024, their research shows. During the same period, the amount of people working remotely dropped two percentage points and those working hybrid schedules increased three points.

While most of the big office pushes are coming from some of the largest employers in the nation, the majority of companies in the United States aren't requiring full-time office work, said Brian Elliott [publisher of the Flex Index, which tracks flexible policies, and CEO]. And about half of U.S. workers are employed by smaller companies, he added. Some companies are capitalizing on the mandates, using flexible policies as a way to poach talent from their competitors, he said....

Some employers are using office mandates to purposely shed workers. An August report from the Federal Reserve Bank shows that "multiple districts reported reducing headcounts through attrition — encouraged, at times, by return-to-office policies and facilitated, at times, by greater automation, including new AI tools." Still, with fewer job openings in the market, some employees will have to comply with office mandates.
Announcing their return-to-office mandates, employers gave the following reasons:

• "In-person collaboration is absolutely vital to building and strengthening our culture and driving the success of our business. Being together helps us innovate, solve problems, share ideas, create, challenge one another, and build the relationships that will make this company great."
  
  -- Paramount CEO David Ellison (in a memo to staff)

• "It has become increasingly clear that we are better when we are together. As we have all experienced, in-person work and collaboration spark innovation, promote creativity, and build stronger connections."
  
  -- Adam Miller, NBCUniversal chief operating officer (in a memo to staff)

Last week Steam and other major storefronts crashed, reports the Guardian, including Nintendo's eShop, PlayStation Store and Microsoft Store. They were all "unable to cope with the demand for Hollow Knight: Silksong, the long-awaited sequel to the critically acclaimed 2017 indie hit Hollow Knight." (which had sold 15 million copies): SilkSong's release triggered widespread outages, with thousands of users reporting issues trying to buy the game in the first few hours of its release. Many were unable to complete purchases, with error messages persisting for almost three hours after the launch... Despite the technical hiccups, within 30 minutes of going live Steam reported more than 100,000 active players, suggesting many had managed to secure their copies.
Aftermath says the "bug-tastic" phenomenon displaced everything except Counter-Strike 2 and Dota 2 on Steam's list of most-played games. The Guardian notes that "At least seven other new games have delayed their launch in the past two weeks to avoid a clash..."

"People have been spamming the chat and the comments of every single game showcase or news event with the words 'Where's Silksong?' for years," writes the Guardian's video games editor: I've never seen another indie game achieve this level of notoriety before it was even released... As VGC points out, Atari released a similar game on the same day as Silksong (Adventure of Samsara) and it had only 12 concurrent players on Steam.
They add that "the hype is justified". Eurogame called Silksong "beautiful, thrilling and cruel." PC Game said Silksong "glows with a level of precision and imagination that's hard to find anywhere else" and "will beat you, burn you, rub your face in the dirt, and then dazzle you with another piece of a haunted clockwork world."

But at least some of the demand also came from the game's low price of $20 in the U.S., suggests Slashdot reader UnknowingFool (with variable regional pricing). "At 5.2M wishes, it was the most wish listed game on Steam. In Brazil, the local price was 74.95 Brazil Real or 13.94 USD." In the age of $70+ AAA games with additional costs, not everyone celebrated the consumer friendly price. Some independent game developers have expressed concern that their games may not sell as well compared to Silksong and cannot afford to charge less.
From ScreenRant: Hollow Knight: Silksong's unbelievably low price point of just $19.99 is exceptionally good value for the consumer. It is an incredibly lengthy game that is only marginally more expensive than its predecessor... it is proving to be a source of controversy for other indie developers who believe it will distort players' expectations.

Microsoft and OpenAI have signed a non-binding deal to restructure their partnership, paving the way for OpenAI to shift into a conventional for-profit model and potentially go public. Reuters reports: Details on the new commercial arrangements were not disclosed, but the companies said they were working to finalize terms of a definitive agreement. [...] Microsoft invested $1 billion in OpenAI in 2019 and another $10 billion at the beginning of 2023. Under their previous agreement, Microsoft had exclusive rights to sell OpenAI's software tools through its Azure cloud computing platform and had preferred access to the startup's technology.

Microsoft was once designated as OpenAI's sole compute provider, though it lessened its grip this year to allow OpenAI to pursue its own data center project, Stargate, including signing $300 billion worth of long-term contracts with Oracle, as well as another cloud deal with Google. As OpenAI's revenue grows into the billions, it is seeking a more conventional corporate structure and partnerships with additional cloud providers to expand sales and secure the computing capacity needed to meet demand. Microsoft, meanwhile, wants continued access to OpenAI's technology even if OpenAI declares its models have reached humanlike intelligence - a milestone that would end the current partnership under existing terms.

OpenAI said under current terms, its nonprofit arm will receive more than $100 billion -- about 20% of the $500 billion valuation it is seeking in private markets -- making it one of the most well-funded nonprofits, according to a memo from Bret Taylor, chairman of OpenAI's current nonprofit board. The companies did not disclose how much of OpenAI Microsoft will own, nor whether Microsoft will retain exclusive access to OpenAI's latest models and technology. Regulatory hurdles remain for OpenAI, as attorneys general in California and Delaware need to approve OpenAI's new structure. The company hopes to complete the conversion by year's end, or risk losing billions in funding tied to that timeline.

A anonymous reader shares a report: Microsoft AI launched its first in-house models last month, adding to the already complicated relationship with its OpenAI partner. Now, Microsoft AI chief Mustafa Suleyman says the company is making "significant investments" in the compute capacity required to Microsoft's own future frontier models.

"We should have the capacity to build world class frontier models in house of all sizes, but we should be very pragmatic and use other models where we need to," said Suleyman during Microsoft's employee-only town hall on Thursday. "We're also going to be making significant investments in our own cluster, so today MAI-1-preview was only trained on 15,000 H100s, a tiny cluster in the grand scheme of things."

Suleyman hinted that Microsoft has ambitions to train models that are comparable to Meta, Google, and xAI's efforts on clusters that are "six to ten times larger in size" than what Microsoft used for its MAI-1-preview. "Much more to do, but it's good to take the first steps," said Suleyman.

Microsoft has eliminated the one-time fee for publishing apps on its Windows Store. According to The Verge, "Individual developers in nearly 200 countries can now sign up to publish apps on the Microsoft Store with just a personal Microsoft account, and no more one-time fees." From the report: Microsoft started cutting its $19 one-time fee to publish apps to its Windows store in June in certain markets, and it's now essentially removing this fee for all developers worldwide. Apple still charges an annual $99 fee to developers, and Google charges a one-time registration fee of $25.

"Developers will no longer need a credit card to get started, removing a key point of friction that has affected many creators around the world," explains Chetna Das, senior product manager at Microsoft. "By eliminating these one-time fees, Microsoft is creating a more inclusive and accessible platform that empowers more developers to innovate, share and thrive on the Windows ecosystem." [...]

The Microsoft Store is now used by more than 250 million monthly active users, according to Microsoft. Microsoft is now encouraging more developers to make use of the store, where they can publish a variety of Win32, UWP, PWA, .NET, MAUI, or Electron apps. Developers can even use their own in-app commerce system to keep 100 percent of their revenues on non-gaming apps.

Amid yesterday's news of Oracle's soaring stock, which propelled founder Larry Ellison to the top of the world's richest list, the Wall Street Journal reported that the cloud giant and OpenAI have struck one of the largest cloud contracts ever signed. Under the deal, OpenAI will purchase $300 billion worth of compute power from Oracle over roughly five years, with purchases beginning in 2027.

"This move away from Microsoft was timed with OpenAI's involvement with the Stargate Project, in which OpenAI, SoftBank, and Oracle have committed to invest $500 billion into domestic data center projects over the next four years," notes TechCrunch.

OpenAI also recently signed a cloud deal with Google. "The deal ... underscores the fact that the two are willing to overlook heavy competition between them to meet the massive computing demands," wrote analyst in Reuter's report.

US Senator Ron Wyden says glaring cybersecurity flaws by Microsoft enabled a ransomware attack on a US hospital system and has called on the Federal Trade Commission to investigate. Bloomberg: In a letter sent Wednesday to FTC Chairman Andrew Ferguson, the Oregon Democrat accused Microsoft of "gross cybersecurity negligence," which he said had resulted in ransomware attacks against US critical infrastructure.

The senator cited the case of the 2024 breach at Ascension, one of the nation's largest nonprofit health systems. The intrusion shut down computers at many of Ascension's hospitals, leading to suspended surgeries and the theft of sensitive data on more than 5 million patients. Wyden said an investigation by his office found that the Ascension hack began after a contractor carried out a search using Microsoft's Bing search engine and was served a malicious link, which led to the contractor inadvertently downloading malware. That allowed hackers access to Ascension's computer networks.

According to Wyden, the attackers then gained access to privileged accounts by exploiting an insecure encryption technology called RC4, which is supported by default on Windows computers. The hacking method is called Kerberoasting, which the company described as a type of cyberattack in which intruders aim to gather passwords by targeting an authentication protocol called Kerberos.

Microsoft is diversifying its AI portfolio by integrating some of Anthropic's AI features into Office 365 apps. "The move will blend Anthropic and OpenAI technology in the apps, after years in which Microsoft primarily used OpenAI for the new features in Word, Excel, Outlook and PowerPoint," reports Reuters. From the report: Developers making Office AI features found Anthropic's latest models performed better than OpenAI in automating tasks such as financial functions in Excel or generating Powerpoint presentations based on instructions, the report said, citing one of the two people involved in the effort. Microsoft will pay its cloud rival Amazon Web Services to access the Anthropic models, according to the report. AWS is one of Anthropic's largest shareholders.

OpenAI's launch of GPT-5 is a step up in quality but Anthropic's Claude Sonnet 4 performs better in creating Powerpoint presentations that are more aesthetically pleasing, the report said. Microsoft plans to announce the move in the coming weeks, while the price of AI tools in Office will stay the same, the report said. "As we've said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership," a Microsoft spokesperson said.

Google Cloud CEO Thomas Kurian revealed the company has already made billions from AI by monetizing through consumption-based pricing, subscriptions, and upselling. "Our backlog is now at $106 billion -- it is growing faster than our revenue," said Kurian, speaking at the Goldman Sachs Communacopia and Technology Conference in San Francisco. "More than 50% of it will convert to revenue over the next two years." CNBC reports: Kurian said some people pay Google by consumption, giving the example of AI infrastructure purchased by enterprise customers. "Whether it's a GPU, TPU or a model, you pay by token -- meaning you pay by what you use," he said. Tokens represent chunks of text that a AI models process when they generate or interpret language. Some people use customer service systems, paying for it by what Kurian called "deflection rates." Such rates are priced based on the business value customers get -- things like uptime, scalability, AI features and security. Google Cloud also provides tools like a "deflection dashboard," that customers can use to track and manage agent interactions. Last month, Google won a $10 billion cloud contract from Meta spanning six years. Meta had largely been reliant on Amazon Web Services for cloud infrastructure, though it also uses Microsoft Azure.

Some customers pay for cloud services by way of subscriptions. "You pay per user per monthly fee -- for example, agents or Workspace," said Kurian, referring to the company's Gemini products, which has its own subscription tiers with various storage options, and the Google Workspace productivity suite, which also has several subscription tiers. Google One, a popular personal cloud storage subscription, offers a basic monthly service to users for $1.99 a month. Earlier this year, the company offered a new subscription tier called "Google AI Ultra," which offers exclusive access to the company's most "cutting edge" AI products with 30 terabytes of storage for $249.99 per month. Kurian gave an example of Google Cloud's cybersecurity subscription tiers, saying "we've seen huge growth in that."

Kurian said that upselling is another key aspect of Google Cloud's strategy. "We also upsell people as they use more of it from one version to another because we have higher quality models and higher-priced tiers," Kurian said. He said that once customers use Google's AI services, they wind up using more of the company's products. "That leads customers who sign a commitment or contract to spend more than they contacted for, which drives more revenue growth," he added. Kurian says it is capturing new customers more quickly too. "We've seen 28% sequential quarter-over-quarter growth in new customer wins in the first half of the year," said Kurian, adding that nearly two-thirds of customers already use Google Cloud's AI tools in a meaningful way. "Selling to existing customers is always easier than selling to new customers, so it helps us improve the cost of sales," Kurian said.

BrianFagioli writes: Microsoft has decided it is time to rein in remote work. The company will soon require employees to spend at least three days per week in the office, starting with those in the Puget Sound region by February 2026. From there, the policy will spread across the United States and eventually overseas.

An Associated Press investigation based on tens of thousands of leaked documents revealed Tuesday that American technology companies designed and built core components of China's surveillance apparatus over the past 25 years, selling billions of dollars in equipment to Chinese police and government agencies despite warnings about human rights abuses.

IBM partnered with Chinese defense contractor Huadi in 2009 to develop predictive policing systems for the "Golden Shield" project, AP reports, citing classified government blueprints. The technology enabled mass detentions in Xinjiang, where administrators assigned 100-point risk scores to Uyghurs with deductions for growing beards or being aged 15-55. Dell promoted a laptop with "all-race recognition" capabilities on its WeChat account in 2019. Thermo Fisher Scientific marketed DNA kits as "designed" for ethnic minorities including Uyghurs and Tibetans until August 2024.

Oracle, Microsoft, HP, Cisco, Intel, NVIDIA, and VMware sold geographic mapping software, facial recognition systems, and cloud infrastructure to Chinese police through the 2010s. The surveillance network tracks "key persons" whose movements are restricted and monitored, with one estimate suggesting 55,000 to 110,000 people were placed under residential surveillance in the past decade. China now has more surveillance cameras than the rest of the world combined.