OpenAI has unveiled a new AI model that it says takes longer to solve problems but gets better results, following Google's similar announcement a day earlier. The model, called o3, replaces o1 from September and spends extra time working through questions that need step-by-step reasoning.

It scores three times higher than o1 on ARC-AGI, a test measuring how well AI handles complex math and logic problems it hasn't seen before. "This is the beginning of the next phase of AI," CEO Sam Altman said during a livestream Friday.

The Microsoft-backed startup is keeping o3 under wraps for now but plans to let outside researchers test it.

Microsoft has lauded the success of its efforts to convince customers to use passkeys instead of passwords, without actually quantifying that success. From a report: The software megalith credits passkey adoption to its enrolment user experience, or UX, which owes its unspecified uptake to unavoidable passkey solicitations -- sometimes referred to as "nudges."

"We're implementing logic that determines how often to show a nudge so as not to overwhelm users, but we don't let them permanently opt out of passkey invitations," explained Sangeeta Ranjit, group product manager, and Scott Bingham, principal product manager, in a blog post. The corporation's onboarding strategy seems to suit its corporate address: One Microsoft Way.

Ranjit and Bingham describe that strategy in a post titled "Convincing a billion users to love passkeys: UX design insights from Microsoft to boost adoption and security." But they don't disclose how many customers love passkeys enough to actually use them.

Microsoft is significantly shifting its Xbox strategy, moving away from console exclusives in a bid to reach gamers across all platforms, Windows Central reports. The company's "Project Latitude" initiative will make previously Xbox-exclusive titles available on PlayStation and other platforms, with even flagship franchises like Halo no longer guaranteed exclusivity.

This strategic pivot comes as Microsoft faces both opportunities and challenges in the gaming industry. While Xbox is seeing record users, according to company statements, the broader gaming market faces stagnant growth and rising development costs. Microsoft CEO Satya Nadella frames this as "redefining what it means to be an Xbox fan," emphasizing accessibility across devices rather than hardware loyalty.

Microsoft bought twice as many of Nvidia's flagship chips as any of its largest rivals in the US and China this year, as OpenAI's biggest investor accelerated its investment in artificial intelligence infrastructure. From a report: Analysts at Omdia, a technology consultancy, estimate that Microsoft bought 485,000 of Nvidia's "Hopper" chips this year. That put Microsoft far ahead of Nvidia's next biggest US customer Meta, which bought 224,000 Hopper chips, as well as its cloud computing rivals Amazon and Google.

With demand outstripping supply of Nvidia's most advanced graphics processing units for much of the past two years, Microsoft's chip hoard has given it an edge in the race to build the next generation of AI systems. This year, Big Tech companies have spent tens of billions of dollars on data centres running Nvidia's latest chips, which have become the hottest commodity in Silicon Valley since the debut of ChatGPT two years ago kick-started an unprecedented surge of investment in AI.

U.S. authorities are investigating Chinese router manufacturer TP-Link over national security risks and considering banning its devices, WSJ reported Wednesday, citing sources familiar with the matter. The Commerce, Defense and Justice departments have launched separate probes into the company, which controls approximately 65% of the U.S. home and small business router market.

Microsoft reported in October that Chinese hackers had compromised thousands of TP-Link routers to launch cyberattacks against Western targets, including government organizations and Defense Department suppliers. The company's routers are widely used across federal agencies, including the Defense Department and NASA. The Justice Department is also examining whether TP-Link's significantly lower pricing violates federal anti-monopoly laws, the report said.

Cloudflare's 2024 internet traffic report highlights a 17.2% global increase in traffic, with Google maintaining its position as the most visited service and the U.S. responsible for 34.6% of bot traffic. The Register reports: One surprise (or perhaps not) is that IPv6 traffic is actually down as a percentage of the packets that passed through Cloudflare's network. It says that 28.5 percent of global traffic was IPv6 during 2024, whereas last year's report put this figure at 33.75 percent. The company also reveals that a fifth of all TCP connections (20.7 percent) are unexpectedly terminated before any useful data can be exchanged. Causes of this could vary from DoS attacks, quirky client behavior, or a network interrupting a connection to filter content.

Coudflare says about half of these incidents were connections closed "Post SYN" -- after its server has received a client's SYN packet, but before a subsequent acknowledgement (ACK) or any useful data. These can be attributed to DoS attacks or internet scanning, while Post-ACK or Post-PSH anomalies are more often associated with connection tampering activity such as filtering, especially if they occur at high rates in specific networks. Mobile device traffic accounted for about 41.3 percent of the total, which is roughly the same as last year. This is largely split between the Apple and Android ecosystems, with iOS on almost a third and Android accounting for two-thirds. [...]

Google's Chrome appears to be the most popular browser by far, accounting for 65.8 percent of all requests during 2024. Just 15.5 percent came from Apple's Safari browser, which leads the way on iOS devices, naturally. Microsoft's Edge accounted for 6.9 percent of browsing, while Mozilla Firefox stood at 4 percent. For search engines, Google also claimed the top spot, with a greater than 88 percent share of all search traffic that passed through Cloudflare. Yandex and Baidu were next with 3.1 percent and 2.7 percent, respectively, while Bing trailed with 2.6 percent. DuckDuckGo accounted for 0.9 percent of searches. You can read Cloudflare's full Year in Review here.

This month Bill Gates recommended four books about making sense of the world, including The Coming Wave, by Mustafa Suleyman. Gates calls it "the book I recommend more than any other on AI — to heads of state, business leaders, and anyone else who asks — because it offers something rare: a clear-eyed view of both the extraordinary opportunities and genuine risks ahead." After helping build DeepMind from a small startup into one of the most important AI companies of the past decade, [Suleyman] went on to found Inflection AI and now leads Microsoft's AI division. But what makes this book special isn't just Mustafa's firsthand experience — it's his deep understanding of scientific history and how technological revolutions unfold. He's a serious intellectual who can draw meaningful parallels across centuries of scientific advancement. Most of the coverage of The Coming Wave has focused on what it has to say about artificial intelligence — which makes sense, given that it's one of the most important books on AI ever written. And there is probably no one as qualified as Mustafa to write it...

But what sets his book apart from others is Mustafa's insight that AI is only one part of an unprecedented convergence of scientific breakthroughs. Gene editing, DNA synthesis, and other advances in biotechnology are racing forward in parallel. As the title suggests, these changes are building like a wave far out at sea — invisible to many but gathering force. Each would be game-changing on its own; together, they're poised to reshape every aspect of society... [P]rogress is already accelerating as costs plummet and computing power grows. Then there are the incentives for profit and power that are driving development. Countries compete with countries, companies compete with companies, and individuals compete for glory and leadership. These forces make technological advancement essentially unstoppable — and they also make it harder to control...

How do we limit the dangers of these technologies while harnessing their benefits? This is the question at the heart of The Coming Wave, because containment is foundational to everything else. Without it, the risks of AI and biotechnology become even more acute. By solving for it first, we create the stability and trust needed to tackle everything else... [Suleyman] lays out an agenda that's appropriately ambitious for the scale of the challenge — ranging from technical solutions (like building an emergency off switch for AI systems) to sweeping institutional changes, including new global treaties, modernized regulatory frameworks, and historic cooperation among governments, companies, and scientists...
In an accompanying Christmas-themed video, Gates adds that "Of all the books on AI, that's the one I recommend the most."

Gates also recommends The Anxious Generation by Jonathan Haidt, saying it "made me reflect on how much of my younger years — which were often spent running around outside without parental supervision, sometimes getting into trouble — helped shape who I am today. Haidt explains how the shift from play-based childhoods to phone-based childhoods is transforming how kids develop and process emotions." (In the video Gates describes it as "kind of a scary book, but very convincing. [Haidt] writes about the rise of mental illness, and anxiety in children. He, unlike some books, actually has some prescriptions, like kids not using phones until much later, parenting style differences. I think it's a super-important book.")

Gates goes into the book's thesis in a longer blog post: that "we're actually facing two distinct crises: digital under-parenting (giving kids unlimited and unsupervised access to devices and social media) and real-world over-parenting (protecting kids from every possible harm in the real world). The result is young people who are suffering from addiction-like behaviors — and suffering, period — while struggling to handle challenges and setbacks that are part of everyday life." [Haidt] makes a strong case for better age verification on social media platforms and delaying smartphone access until kids are older. Literally and figuratively, he argues, we also need to rebuild the infrastructure of childhood itself — from creating more engaging playgrounds that encourage reasonable risk-taking, to establishing phone-free zones in schools, to helping young people rediscover the joy of in-person interaction.
Gates also recommends Engineering in Plain Sight, by Grady Hillhouse, a book which he says "encourages curiosity." ("Hillhouse takes all of the mysterious structures we see every day, from cable boxes to transformers to cell phone towers, and explains what they are and how they work. It's the kind of read that will reward your curiosity and answer questions you didn't even know you had.")

And finally, Gates recommends an autobiography by 81-year-old Pulitzer Prize-winning historian/biographer/former sports journalist Doris Kearns Goodwin, who assesses the impact of President Lyndon Johnson's policies in a surprising "personal history of the 1960s."

An anonymous reader shared this report from Computerworld: Microsoft has announced Phi-4 — a new AI model with 14 billion parameters — designed for complex reasoning tasks, including mathematics. Phi-4 excels in areas such as STEM question-answering and advanced problem-solving, surpassing similar models in performance. Phi-4, part of the Phi small language models (SLMs), is currently available on Azure AI Foundry under the Microsoft Research License Agreement and will launch on Hugging Face [this] week, the company said in a blog post.

The company emphasized that Phi-4's design focuses on improving accuracy through enhanced training and data curation.... "Phi-4 outperforms comparable and even larger models on tasks like mathematical reasoning, thanks to a training process that combines synthetic datasets, curated organic data, and innovative post-training techniques," Microsoft said in its announcement. The model leverages a new training approach that integrates multi-agent prompting workflows and data-driven innovations to enhance its reasoning efficiency. The accompanying report highlights that Phi-4 balances size and performance, challenging the industry norm of prioritizing larger models... Phi-4 achieved a score of 80.4 on the MATH benchmark and has surpassed other systems in problem-solving and reasoning evaluations, according to the technical report accompanying the release. This makes it particularly appealing for domain-specific applications requiring precision, like scientific computation or advanced STEM problem-solving.

Microsoft emphasized its commitment to ethical AI development, integrating advanced safety measures into Phi-4. The model benefits from Azure AI Content Safety features such as prompt shields, protected material detection, and real-time application monitoring. These features, Microsoft explained, help users address risks like adversarial prompts and data security threats during AI deployment. The company also reiterated that Azure AI Foundry, the platform hosting Phi-4, offers tools to measure and mitigate AI risks. Developers using the platform can evaluate and improve their models through built-in metrics and custom safety evaluations, Microsoft added... With Phi-4, Microsoft continues to evolve its AI offerings while promoting responsible use through robust safeguards. Industry watchers will observe how this approach shapes adoption in critical fields where reasoning and security are paramount.

The Washington Post reports: Years before the internet was created and the first smartphones buzzed to life, an educational platform called PLATO offered a glimpse of the digital world to come. Launched in 1960 at the University of Illinois at Urbana-Champaign [UIUC], it was the first generalized, computer-based instructional system, and grew into a home for early message boards, emails, chatrooms, instant messaging and multiplayer video games.

The platform's developer, Donald Bitzer, was a handball-playing, magic-loving electrical engineer who opened his computer lab to practically everyone, welcoming contributions from Illinois undergrads as well as teenagers who were still in high school. Dr. Bitzer, who died Dec. 10 at age 90, spent more than two decades working on PLATO, managing its growth and development while also pioneering digital technologies that included the plasma display panel, a forerunner of the ultrathin screens used on today's TVs and tablets. "All of the features you see kids using now, like discussion boards or forums and blogs, started with PLATO," he said during a 2014 return to Illinois, his alma mater. "All of the social networking we take for granted actually started as an educational tool."
Long-time Slashdot reader theodp found another remembrance online. "Ray Ozzie, whose LinkedIn profile dedicates more space to describing his work as a PLATO developer as a UIUC undergrad than it does to his later successes as a creator of Lotus Notes and as Microsoft's Chief Software Architect, offers his own heartfelt mini-obit." Ozzie writes: It's difficult to adequately convey how much impact he had on so many, and I implore you to take a few minutes to honor him by reading a bit about him and his contributions. Links below. As an insecure young CS student at UIUC in 1974, Paul Tenczar, working for/with Don, graciously gave me a chance as a jr. systems programmer on the mind-bogglingly forward thinking system known as PLATO. A global, interactive system for learning, collaboration, and community like no other at the time. We were young and in awe of how Don led, inspired, and managed to keep the project alive. I was introverted; shaking; stage fright. Yeah I could code. But how could such a deeply technical engineer assemble such a strong team to execute on such a totally novel and inspirational vision, secure government funding, and yet also demo the product on the Phil Donahue show?

"Here's to the crazy ones. The misfits. The rebels. The troublemakers. The ones who see things differently. They're not fond of rules." You touched so many of us and shaped who we became and the risks we would take, having an impact well beyond that which you created. You made us think and you made us laugh. I hope we made you proud."

Bad news for anyone out there who still uses Skype: The Microsoft-owned phone and messaging platform has quietly stopped letting users top-up accounts with credit and buy Skype phone numbers. From a report: Instead, Skype is locking into SaaS mode: It's pushing users to take monthly subscriptions for regional and global Skype-to-phone plans, for a set monthly fee, likely impacting millions of people. The most recent figures Microsoft released for Skype last year said it had 36 million daily active users.

An anonymous reader quotes a report from Tom's Hardware, written by Avram Piltch: Microsoft's Recall feature recently made its way back to Windows Insiders after having been pulled from test builds back in June, due to security and privacy concerns. The new version of Recall encrypts the screens it captures and, by default, it has a "Filter sensitive information," setting enabled, which is supposed to prevent it from recording any app or website that is showing credit card numbers, social security numbers, or other important financial / personal info. In my tests, however, this filter only worked in some situations (on two e-commerce sites), leaving a gaping hole in the protection it promises.

When I entered a credit card number and a random username / password into a Windows Notepad window, Recall captured it, despite the fact that I had text such as "Capital One Visa" right next to the numbers. Similarly, when I filled out a loan application PDF in Microsoft Edge, entering a social security number, name and DOB, Recall captured that. (Note that all info in these screenshots is made up). I also created my own HTML page with a web form that said, explicitly, "enter your credit card number below." The form had fields for Credit card type, number, CVC and expiration date. I thought this might trigger Recall to block it, but the software captured an image of my form filled out, complete with the credit card data. Recall did refuse to capture the credit card fields on the payment pages of Pimoroni and Adafruit. "So, when it came to real-world commerce sites that I visited, Recall got it right," adds Piltch. "However, what my experiment proves is that it's pretty much impossible for Microsoft's AI filter to identify every situation where sensitive information is on screen and avoid capturing it."

An anonymous reader shares a report: Copilot has gone native for Windows Insiders and commandeered a popular keyboard shortcut in the process. The move from a Progressive Web App (PWA) to a native binary -- although most of it appears to still be a website, just not running as a PWA -- will be welcomed. Microsoft noted that once the app update has been installed, Copilot will appear in the system tray.

However, the assistant's quick view feature has been given the Alt+Space keyboard shortcut. This is already used by many other applications, including Microsoft's own PowerToys. PowerToys Run, for example, uses Alt+Space to open a launcher into which users can type in the name of the service they are seeking. Alt+Space is also used to show the context menu of the active window. Therefore, Microsoft's decision to hand the shortcut over to Copilot is unlikely to please keyboard warriors who are used to their shortcuts working in a particular way.

The Windows vendor acknowledged that the shortcut was already in use by many apps, saying: "For any apps installed on your PC that might utilize this keyboard shortcut, Windows will register whichever app is launched first on your PC and running in the background as the app that is invoked when using Alt+Space."

Amazon has postponed implementing Microsoft's cloud-based Office suite for its workforce by one year, citing security concerns following a Russian cyber attack on Microsoft's systems. The delay affects a $1 billion, five-year contract signed last year to provide Microsoft 365 to Amazon's 1.5 million employees, making the e-commerce giant one of the largest customers of Microsoft's cloud productivity suite.

The decision came after Microsoft revealed that Midnight Blizzard, a Russia-linked hacking group, had breached several employee email accounts, including those of senior executives and cybersecurity staff. Amazon subsequently conducted its own security review and requested enhanced protection measures from Microsoft.

Harvard University announced Thursday it's releasing a high-quality dataset of nearly one million public-domain books that could be used by anyone to train large language models and other AI tools. From a report: The dataset was created by Harvard's newly formed Institutional Data Initiative with funding from both Microsoft and OpenAI. It contains books scanned as part of the Google Books project that are no longer protected by copyright.

Around five times the size of the notorious Books3 dataset that was used to train AI models like Meta's Llama, the Institutional Data Initiative's database spans genres, decades, and languages, with classics from Shakespeare, Charles Dickens, and Dante included alongside obscure Czech math textbooks and Welsh pocket dictionaries. Greg Leppert, executive director of the Institutional Data Initiative, says the project is an attempt to "level the playing field" by giving the general public, including small players in the AI industry and individual researchers, access to the sort of highly-refined and curated content repositories that normally only established tech giants have the resources to assemble. "It's gone through rigorous review," he says.

Leppert believes the new public domain database could be used in conjunction with other licensed materials to build artificial intelligence models. "I think about it a bit like the way that Linux has become a foundational operating system for so much of the world," he says, noting that companies would still need to use additional training data to differentiate their models from those of their competitors.

Google has announced an experimental AI-powered code agent called "Jules" that can automatically fix coding errors for developers. From a report: Jules was introduced today alongside Gemini 2.0, and uses the updated Google AI model to create multi-step plans to address issues, modify multiple files, and prepare pull requests for Python and Javascript coding tasks in GitHub workflows.

Microsoft introduced a similar experience for GitHub Copilot last year that can recognize and explain code, alongside recommending changes and fixing bugs. Jules will compete against Microsoft's offering, and also against tools like Cursor and even Claude and ChatGPT's coding abilities. Google's launch of a coding-focused AI assistant is no surprise -- CEO Sundar Pichai said in October that more than a quarter of all new code at the company is now generated by AI.

"Jules handles bug fixes and other time-consuming tasks while you focus on what you actually want to build," Google says in its blog post. "This effort is part of our long-term goal of building AI agents that are helpful in all domains, including coding."

An anonymous reader shares a report: Google recently asked the U.S. government to break up Microsoft's exclusive agreement to host OpenAI's technology on its cloud servers, according to a person who has been directly involved in the effort. The conversation took place after the Federal Trade Commission, one of the primary federal antitrust enforcement agencies, asked Google about Microsoft's business practices as part of a broader investigation, this person said.

Firms that compete with Microsoft in renting out cloud servers, including Google and Amazon, want to host OpenAI's artificial intelligence themselves so their cloud customers don't need to also tap Microsoft servers to get access to the startup's technology, this person said.

Microsoft, trying to mitigate the climate impact of its data center building boom, is starting to roll out a new design that uses zero water to cool the facilities' chips and servers. From a report: Launched in August, the new design will eliminate the more than 125 million liters of water each data center typically uses per year, the company said in a statement. The new system use a "closed loop" to recycle water; liquid is added during construction and continually circulated -- obviating the need for fresh supplies. Data centers will still require fresh water for worker facilities like bathrooms and kitchens.

Microsoft spent more than $50 billion on capital expenditures in the fiscal year ended June 30, the vast majority related to data center construction fueled by demand for artificial intelligence services. It plans to top that figure in the current year, requiring rapidly rising amounts of energy to run the networks and water to cool equipment. Many of latest facilities are going up in hot, dry areas like Arizona and Texas, making it even more critical to find ways to conserve water. Microsoft's existing data centers will continue to use a mix of older technologies, but new projects in Phoenix and Mount Pleasant, Wisconsin, will begin using the zero-water designs in 2026.

As tech giants struggle to profit from AI, a growing industry of specialized AI training firms is emerging by hiring doctors, radiologists and other experts to develop commercially viable applications. The $20 billion data services sector, projected to grow 20% annually, is attracting major investment by focusing on high-value, specialized AI applications.

Companies like iMerit and Centaur Labs are recruiting specialists worldwide, from radiologists in Kazakhstan to agricultural experts in Bhutan, paying premium rates for domain expertise rather than basic data processing. While Microsoft and Alphabet post losses on AI development, this specialized sector is finding profitability by bridging the gap between raw AI capabilities and practical business applications.

Microsoft AI CEO Mustafa Suleyman predicts conversational AI will become the primary way people interact with technology, replacing traditional web browsers and search engines within the next few years. In an interview with The Verge, Suleyman, who oversees Microsoft's consumer AI products including Bing and Copilot, called current search interfaces "completely broken" and "a total pain," arguing that voice-based AI interactions will prove "100 times easier" for users. He said: The UI that you experience is going to be automagically produced by an LLM in three or five years, and that is going to be the default. And they'll be representing the brands, businesses, influencers, celebrities, academics, activists, and organizations, just as each one of those stakeholders in society ended up getting a podcast, getting a website, writing a blog, maybe building an app, or using the telephone back in the day.

The technological revolution produces a new interface, which completely shuffles the way that things are distributed. And some organizations adapt really fast and they jump on board and it kind of transforms their businesses and their organizations, and some don't. There will be an adjustment. We'll look back by 2030 and be like, "Oh, that really was the kind of moment when there was this true inflection point because these conversational AIs really are the primary way that we have these interactions." And so, you're absolutely right. A brand and a business are going to use that AI to talk to your personal companion AI because I don't really like doing that kind of shopping. And some people do, and they'll do that kind of direct-to-consumer browsing experience. Many people don't like it, and it's actually super frustrating, hard, and slow.

And so, increasingly you'll come to work with your personal AI companion to go and be that interface, to go and negotiate, find great opportunities, and adapt them to your specific context. That'll just be a much more efficient protocol because AIs can talk to AIs in super real-time. And by the way, let's not fool ourselves. We already have this on the open web today. We have behind-the-scenes, real-time negotiation between buyers and sellers of ad space, or between search ranking algorithms. So, there's already that kind of marketplace of AIs. It's just not explicitly manifested in language. It's operating in vector space.

Bruce Perens, original co-founder of the Open Source Initiative, has responded to questions from Slashdot readers about a new alternative he's developing that hopefully helps "Post Open" developers get paid.

But first, "One of the things that's clear from the Slashdot patter is that people are not aware of what I've been doing, in general," Perens says. "So, let's start by filling that in..."

Read on for the rest of his wide-ranging answers....