European Union officials unveiled new AI regulations on Thursday that require makers of the most powerful AI systems to improve transparency, limit copyright violations and protect public safety.

The rules apply to companies like OpenAI, Microsoft and Google that develop general-purpose AI systems underpinning services like ChatGPT, which can analyze enormous amounts of data and perform human tasks. The code of practice provides concrete details about enforcing the AI Act passed last year, with rules taking effect August 2.

EU regulators cannot impose penalties for noncompliance until August 2026. Companies must provide detailed breakdowns of content used for training algorithms and conduct risk assessments to prevent misuse for creating biological weapons. CCIA Europe, representing Amazon, Google and Meta, told New York Times the code imposes a disproportionate burden on AI providers.

Over 240 browser extensions with nearly a million total installs have been covertly turning users' browsers into web-scraping bots. "The extensions serve a wide range of purposes, including managing bookmarks and clipboards, boosting speaker volumes, and generating random numbers," reports Ars Technica. "The common thread among all of them: They incorporate MellowTel-js, an open source JavaScript library that allows developers to monetize their extensions." Ars Technica reports: Some of the data swept up in the collection free-for-all included surveillance videos hosted on Nest, tax returns, billing invoices, business documents, and presentation slides posted to, or hosted on, Microsoft OneDrive and Intuit.com, vehicle identification numbers of recently bought automobiles along with the names and addresses of the buyers, patient names and the doctors they saw, travel itineraries hosted on Priceline, Booking.com, and airline websites, Facebook Messenger attachments and Facebook photos, even when the photos were set to be private. The dragnet also collected proprietary information belonging to Tesla, Blue Origin, Amgen, Merck, Pfizer, Roche, and dozens of other companies.

Tuckner said in an email Wednesday that the most recent status of the affected extensions is:

- Of 45 known Chrome extensions, 12 are now inactive. Some of the extensions were removed for malware explicitly. Others have removed the library.
- Of 129 Edge extensions incorporating the library, eight are now inactive.
- Of 71 affected Firefox extensions, two are now inactive.

Some of the inactive extensions were removed for malware explicitly. Others have removed the library in more recent updates. A complete list of extensions found by Tuckner is here.

AMD is warning users of a newly discovered form of side-channel attack affecting a broad range of its chips that could lead to information disclosure. Register: Akin to Meltdown and Spectre, the Transient Scheduler Attack (TSA) comprises four vulnerabilities that AMD said it discovered while looking into a Microsoft report about microarchitectural leaks.

The four bugs do not appear too venomous at face value -- two have medium-severity ratings while the other two are rated "low." However, the low-level nature of the exploit's impact has nonetheless led Trend Micro and CrowdStrike to assess the threat as "critical."

The reasons for the low severity scores are the high degree of complexity involved in a successful attack -- AMD said it could only be carried out by an attacker able to run arbitrary code on a target machine. It affects AMD processors (desktop, mobile and datacenter models), including 3rd gen and 4th gen EPYC chips -- the full list is here.

Microsoft is keen to show employees how much AI is transforming its own workplace, even as the company terminates thousands of personnel. From a report: During a presentation this week, Chief Commercial Officer Judson Althoff said artificial intelligence tools are boosting productivity in everything from sales and customer service to software engineering, according to a person familiar with his remarks.

Althoff said AI saved Microsoft more than $500 million last year in its call centers alone and increased both employee and customer satisfaction, according to the person, who requested anonymity to discuss an internal matter. The company is also starting to use AI to handle interactions with smaller customers, Althoff said. This effort is nascent, but already generating tens of millions of dollars, he said.

Microsoft has pledged more than $4 billion in cash and technology services to train millions of people in AI use, targeting schools, community colleges, technical colleges and nonprofits. The company said it will launch Microsoft Elevate Academy to help 20 million people earn AI certificates.

Microsoft President Brad Smith said the company would "serve as an advocate to ensure that students in every school across the country have access to A.I. education." The announcement follows Tuesday's news that the American Federation of Teachers received $23 million from Microsoft, OpenAI and Anthropic for a national AI training center. Last week, dozens of companies including Amazon, Apple, Google, Meta, Microsoft, Nvidia and OpenAI signed a White House pledge promising schools funding, technology and training materials for AI education.

Nvidia shares jumped more than 2% on Wednesday, topping a $4 trillion market cap for the first time as investors scooped stock in the tech giant building the hardware for the generative AI boom. From a report: The chipmaker is the first company to ever achieve this market value. Nvidia is the world's most valuable company, surpassing Microsoft and Apple, both of which hit the $3 trillion mark before Nvidia. Microsoft is also one of Nvidia's biggest and most important customers. The California-based company, which was founded in 1993, first passed the $2 trillion mark in February 2024, and surpassed $3 trillion in June.

Nvidia has profited heavily off of growing demand for artificial intelligence hardware and chips since the launch of ChatGPT in late 2022. The company has positioned itself as the decisive leader in the creating the graphics processing units that power large language models.

Activision removed "Call of Duty: WWII" from Microsoft Store and Game Pass after hackers exploited a security vulnerability that allowed them to compromise players' computers, TechCrunch reported Tuesday, citing a source. The gaming giant took the 2017 first-person shooter offline last week while investigating what it initially described only as "reports of an issue."

Players posted on social media claiming their systems had been hacked while playing the game. The vulnerability was a remote code execution exploit that enables attackers to install malware and take control of victims' devices. The Microsoft Store and Game Pass versions contained an unpatched security flaw that had been fixed in other versions of the game.

An anonymous reader shares a blog post: Version 140 of the Thunderbird mail client has been released. Notable features include "dark message mode" to adapt message content to dark mode, the ability to easily transfer desktop settings to the mobile Thunderbird client, experimental support for Microsoft Exchange, as well as global controls for message threading and sort order.

Thunderbird 140 is an extended-support release (ESR) which will be supported for 12 months. However, the Thunderbird project is trying to encourage users to adopt the Release channel for monthly updates instead. The project is staggering upgrades to 140 for existing Thunderbird users in order to catch any significant bugs before they are widely deployed, but users can upgrade manually via the Help > About menu. See the release notes for a full list of changes.

Microsoft and OpenAI are locked in acrimonious negotiations partly because they cannot agree on what artificial general intelligence means, despite having written the term into a contract worth over $13 billion, according to The Wall Street Journal.

One definition reportedly agreed upon by the companies sets the AGI threshold at when AI generates $100 billion in profits. Under their partnership agreement, OpenAI can limit Microsoft's access to future technology once it achieves AGI. OpenAI executives believe they are close to declaring AGI, while Microsoft CEO Satya Nadella called using AGI as a self-proclaimed milestone "nonsensical benchmark hacking" on the Dwarkesh Patel podcast in February.

Microsoft, OpenAI, and Anthropic will announce Tuesday the launch of a $22.5 million AI training center for members of the American Federation of Teachers, according to details inadvertently published early on a publicly accessible YouTube livestream. The National Academy for AI Instruction will be based in New York City and aims to equip kindergarten through 12th grade instructors with "the tools and confidence to bring AI into the classroom in a way that supports learning and opportunity for all students."

The initiative will provide free AI training and curriculum to teachers in the second-largest US teachers' union, which represents about 1.8 million workers including K-12 teachers, school nurses and college staff. The academy builds on Microsoft's December 2023 partnership with the AFL-CIO, the umbrella organization that includes the American Federation of Teachers.

China "is pouring money into building an AI supply chain with as little reliance on the U.S. as possible," reports the Wall Street Journal.

And now Chinese AI companies "are loosening the U.S.'s global stranglehold on AI," reports the Wall Street Journal, "challenging American superiority and setting the stage for a global arms race in the technology." In Europe, the Middle East, Africa and Asia, users ranging from multinational banks to public universities are turning to large language models from Chinese companies such as startup DeepSeek and e-commerce giant Alibaba as alternatives to American offerings such as ChatGPT... Saudi Aramco, the world's largest oil company, recently installed DeepSeek in its main data center. Even major American cloud service providers such as Amazon Web Services, Microsoft and Google offer DeepSeek to customers, despite the White House banning use of the company's app on some government devices over data-security concerns.

OpenAI's ChatGPT remains the world's predominant AI consumer chatbot, with 910 million global downloads compared with DeepSeek's 125 million, figures from researcher Sensor Tower show. American AI is widely seen as the industry's gold standard, thanks to advantages in computing semiconductors, cutting-edge research and access to financial capital. But as in many other industries, Chinese companies have started to snatch customers by offering performance that is nearly as good at vastly lower prices. A study of global competitiveness in critical technologies released in early June by researchers at Harvard University found China has advantages in two key building blocks of AI, data and human capital, that are helping it keep pace...

Leading Chinese AI companies — which include Tencent and Baidu — further benefit from releasing their AI models open-source, meaning users are free to tweak them for their own purposes. That encourages developers and companies globally to adopt them. Analysts say it could also pressure U.S. rivals such as OpenAI and Anthropic to justify keeping their models private and the premiums they charge for their service... On Latenode, a Cyprus-based platform that helps global businesses build custom AI tools for tasks including creating social-media and marketing content, as many as one in five users globally now opt for DeepSeek's model, according to co-founder Oleg Zankov. "DeepSeek is overall the same quality but 17 times cheaper," Zankov said, which makes it particularly appealing for clients in places such as Chile and Brazil, where money and computing power aren't as plentiful...

The less dominant American AI companies are, the less power the U.S. will have to set global standards for how the technology should be used, industry analysts say. That opens the door for Beijing to use Chinese models as a Trojan horse for disseminating information that reflects its preferred view of the world, some warn.... The U.S. also risks losing insight into China's ambitions and AI innovations, according to Ritwik Gupta, AI policy fellow at the University of California, Berkeley. "If they are dependent on the global ecosystem, then we can govern it," said Gupta. "If not, China is going to do what it is going to do, and we won't have visibility."
The article also warns of other potential issues:

• "Further down the line, a breakdown in U.S.-China cooperation on safety and security could cripple the world's capacity to fight future military and societal threats from unrestrained AI."

• "The fracturing of global AI is already costing Western makers of computer chips and other hardware billions in lost sales... Adoption of Chinese models globally could also mean lost market share and earnings for AI-related U.S. firms such as Google and Meta."

"Microsoft has released the source code for the GitHub Copilot Chat extension for VS Code under the MIT license," reports BleepingComputer. This provides the community access to the full implementation of the chat-based coding assistant, including the implementation of "agent mode," what contextual data is sent to large language models (LLMs), and the design of system prompts. The GitHub repository hosting the code also details telemetry collection mechanisms, addressing long-standing questions about data transparency in AI-assisted coding tools...

As the VS Code team explained previously, shifts in AI tooling landscape like the rapid growth of the open-source AI ecosystem and a more level playing field for all have reduced the need for secrecy around prompt engineering and UI design. At the same time, increased targeting of development tools by malicious actors has increased the need for crowdsourcing contributions to rapidly pinpoint problems and develop effective fixes. Essentially, openness is now considered superior from a security perspective.
"If you've been hesitant to adopt AI tools because you don't trust the black box behind them, this move opensources-github-copilot-chat-vscode/offers something rare these days: transparency," writes Slashdot reader BrianFagioli" Now that the extension is open source, developers can audit how agent mode actually works. You can also dig into how it manages your data, customize its behavior, or build entirely new tools on top of it. This could be especially useful in enterprise environments where compliance and control are non negotiable.

It is worth pointing out that the backend models powering Copilot remain closed source. So no, you won't be able to self host the whole experience or train your own Copilot. But everything running locally in VS Code is now fair game. Microsoft says it is planning to eventually merge inline code completions into the same open source package too, which would make Copilot Chat the new hub for both chat and suggestions.

An anonymous reader shares a report: The sweeping layoffs announced by Microsoft this week have been especially hard on its gaming studios, but one Xbox executive has a solution to "help reduce the emotional and cognitive load that comes with job loss": seek advice from AI chatbots.

In a now-deleted LinkedIn post captured by Aftermath, Xbox Game Studios' Matt Turnbull said that he would be "remiss in not trying to offer the best advice I can under the circumstances." The circumstances here being a slew of game cancellations, services being shuttered, studio closures, and job cuts across key Xbox divisions as Microsoft lays off as many as 9,100 employees across the company.

Turnbull acknowledged that people have some "strong feelings" about AI tools like ChatGPT and Copilot, but suggested that anybody who's feeling "overwhelmed" could use them to get advice about creating resumes, career planning, and applying for new roles.

Windows 11 has finally overtaken the market share of its predecessor, with just three months remaining until Microsoft discontinues support for Windows 10. From a report: As of today, July's StatCounter figures show the market share of Windows 11 at 50.24 percent, with Windows 10 at 46.84 percent. It's a far cry from a year ago, when Windows 10 stood at 66.04 percent and Windows 11 languished at 29.75 percent.

Newspaper Pakistan Today: In a significant moment for Pakistan's technology sector, Microsoft has officially shut down its operations in the country, concluding a 25-year journey that began with high hopes for digital transformation and global partnership.

The move, confirmed by employees and media sources, marks the quiet departure of the software giant, which had launched its Pakistan presence in June 2000. The last remaining employees were formally informed of the closure in recent days, signalling the end of an era that saw Microsoft play a key role in developing local talent, building enterprise partnerships, and promoting digital literacy across sectors.

Valve has achieved near-total dominance of PC gaming distribution through Steam, but the victory appears to have left the company adrift, Financial Times argues. The platform controls an estimated 70% of PC game sales while generating billions in revenue, yet Valve releases major new games at what observers call a "glacial pace."

Founder Gabe Newell has largely retreated from the company's operations, reportedly living at sea on one of his five ships and pursuing side projects like brain-computer interface startup Starfish Neuroscience. The much-anticipated third Half-Life game became "the video game equivalent of Samuel Beckett's Godot" before being quietly cancelled.

Attempts to challenge Steam have failed repeatedly. Epic Games Store, powered by Fortnite's success, "has failed to really impact Steam in any meaningful way," according to industry analysts. Microsoft runs what analysts describe as a "somewhat unambitious store," while EA shut down its Origin launcher earlier this year. Gaming analyst Michael Pachter notes that major tech companies could displace Valve "but nobody cares" enough to mount a serious challenge.

Court documents suggest Steam's revenues will exceed $10 billion next year, leaving Valve with unprecedented profits but unclear direction for a company that appears to have run out of worlds to conquer.

Robert Caruso once again pitted an AI chatbot against Atari 2600 Video Chess -- this time using Microsoft's Copilot instead of ChatGPT. Despite confident claims of chess mastery, Copilot fell just as hard. The Register reports: By now, anybody with experience of today's generative AI systems will know what happened. Copilot's hubris was misplaced. Its moves were... interesting, and it managed to lose two pawns, a knight, and a bishop while the mighty Atari 2600 Video Chess was only down a single pawn. Eventually, Caruso asked Copilot to compare what it thought the board looked like with the last screenshot he'd pasted, and the chatbot admitted they were different. "ChatGPT deja vu."

There was no way Microsoft's chatbot could win with this handicap. Still, it was gracious in defeat: "Atari's earned the win this round. I'll tip my digital king with dignity and honor [to the] the vintage silicon mastermind that bested me fair and square." Caruso's experiment is amusing but also highlights the absolute confidence with which an AI can spout nonsense. Copilot (like ChatGPT) had likely been trained on the fundamentals of chess, but could not create strategies. The problem was compounded by the fact that what it understood the positions on the chessboard to be, versus reality, appeared to be markedly different.

The story's moral has to be: Beware of the confidence of chatbots. LLMs are apparently good at some things. A 45-year-old chess game is clearly not one of them.

AI-powered note-taking apps are increasingly attending workplace meetings in place of human participants, creating situations where automated transcription bots outnumber actual attendees.

Major platforms including Zoom, Microsoft Teams and Google Meet now offer built-in note-taking features that record, transcribe and summarize meetings for invited participants who don't attend. The technology operates under varying legal frameworks, with most states requiring only single-party consent for recording while California, Florida, and Pennsylvania mandate all-party approval.

Microsoft is kicking off its fiscal year by firing thousands of employees in the largest round of layoffs since 2023, the company confirmed Wednesday. From a report: In an ongoing effort to streamline its workforce, Microsoft said that as much as 4%, or roughly 9,100, of the company's employees could be affected by Wednesday's layoffs. The move follows two waves of layoffs in May and June, which saw Microsoft fire more than 6,000 employees, almost 2,300 of whom were based in Washington.

Figma has filed to go public on the NYSE under the ticker "FIG," marking one of the most anticipated IPOs in recent years following its scrapped $20 billion acquisition by Adobe. CNBC reports: Revenue in the first quarter increased 46% to $228.2 million from $156.2 million in the same period a year ago, according to Figma's prospectus. The company recorded a net income of $44.9 million, compared to $13.5 million a year earlier. As of March 31, Figma had 1,031 customers contributing at least $100,000 a year to annual revenue, up 47% from a year earlier. Clients include Amazon Web Services, Google, Microsoft and Netflix. More than half of revenue comes from outside the U.S. Figma didn't say how many shares it plans to sell in the IPO. The company was valued at $12.5 billion in a tender offer last year, and in April it announced that it had confidentially filed for an IPO with the SEC. [...]

Figma was founded in 2012 by CEO Dylan Field, 33, and Evan Wallace, and is based in San Francisco. The company had 1,646 employees as of March 31. Before establishing Figma, Field spent over two years at Brown University, where he met Wallace. Field then took a Thiel Fellowship "to pursue entrepreneurial projects," according to the filing. The two-year program that Founders Fund partner Peter Thiel established in 2011 gives young entrepreneurs a $200,000 grant along with support from founders and investors, according to an online description. Field is the biggest individual owner of Figma, with 56.6 million Class B shares and 51.1% of voting power ahead of the IPO. He said in a letter to investors that it was time for Figma to buck the "trend of many amazing companies staying privately indefinitely." "Some of the obvious benefits such as good corporate hygiene, brand awareness, liquidity, stronger currency and access to capital markets apply," wrote Field. "More importantly, I like the idea of our community sharing in the ownership of Figma -- and the best way to accomplish this is through public markets."

As a public company, Field said investors should "expect us to take big swings," including through acquisitions.

In April, Figma bought the assets and team of an unnamed technology company for $14 million, according to the filing. They also registered over 13 million users per month, one-third of which are designers.