Hackers backed by the North Korean government gained a major win when Microsoft left a Windows zero-day unpatched for six months after learning it was under active exploitation. From a report: Even after Microsoft patched the vulnerability last month, the company made no mention that the North Korean threat group Lazarus had been using the vulnerability since at least August to install a stealthy rootkit on vulnerable computers. The vulnerability provided an easy and stealthy means for malware that had already gained administrative system rights to interact with the Windows kernel. Lazarus used the vulnerability for just that. Even so, Microsoft has long said that such admin-to-kernel elevations don't represent the crossing of a security boundary, a possible explanation for the time Microsoft took to fix the vulnerability.

"When it comes to Windows security, there is a thin line between admin and kernel," Jan Vojtesek, a researcher with security firm Avast, explained last week. "Microsoft's security servicing criteria have long asserted that '[a]dministrator-to-kernel is not a security boundary,' meaning that Microsoft reserves the right to patch admin-to-kernel vulnerabilities at its own discretion. As a result, the Windows security model does not guarantee that it will prevent an admin-level attacker from directly accessing the kernel." The Microsoft policy proved to be a boon to Lazarus in installing "FudModule," a custom rootkit that Avast said was exceptionally stealthy and advanced. Rootkits are pieces of malware that have the ability to hide their files, processes, and other inner workings from the operating system itself and at the same time control the deepest levels of the operating system. To work, they must first gain administrative privileges -- a major accomplishment for any malware infecting a modern OS. Then, they must clear yet another hurdle: directly interacting with the kernel, the innermost recess of an OS reserved for the most sensitive functions.

Microsoft built two datacenters west of Phoenix, with plans for seven more (serving, among other companies, OpenAI). "Microsoft has been adding data centers at a stupendous rate, spending more than $10 billion on cloud-computing capacity in every quarter of late," writes the Atlantic. "One semiconductor analyst called this "the largest infrastructure buildout that humanity has ever seen."

But is this part of a concerning trend? Microsoft plans to absorb its excess heat with a steady flow of air and, as needed, evaporated drinking water. Use of the latter is projected to reach more than 50 million gallons every year. That might be a burden in the best of times. As of 2023, it seemed absurd. Phoenix had just endured its hottest summer ever, with 55 days of temperatures above 110 degrees. The weather strained electrical grids and compounded the effects of the worst drought the region has faced in more than a millennium. The Colorado River, which provides drinking water and hydropower throughout the region, has been dwindling. Farmers have already had to fallow fields, and a community on the eastern outskirts of Phoenix went without tap water for most of the year... [T]here were dozens of other facilities I could visit in the area, including those run by Apple, Amazon, Meta, and, soon, Google. Not too far from California, and with plenty of cheap land, Greater Phoenix is among the fastest-growing hubs in the U.S. for data centers....

Microsoft, the biggest tech firm on the planet, has made ambitious plans to tackle climate change. In 2020, it pledged to be carbon-negative (removing more carbon than it emits each year) and water-positive (replenishing more clean water than it consumes) by the end of the decade. But the company also made an all-encompassing commitment to OpenAI, the most important maker of large-scale AI models. In so doing, it helped kick off a global race to build and deploy one of the world's most resource-intensive digital technologies. Microsoft operates more than 300 data centers around the world, and in 2021 declared itself "on pace to build between 50 and 100 new datacenters each year for the foreseeable future...."

Researchers at UC Riverside estimated last year... that global AI demand could cause data centers to suck up 1.1 trillion to 1.7 trillion gallons of freshwater by 2027. A separate study from a university in the Netherlands, this one peer-reviewed, found that AI servers' electricity demand could grow, over the same period, to be on the order of 100 terawatt hours per year, about as much as the entire annual consumption of Argentina or Sweden... [T]ensions over data centers' water use are cropping up not just in Arizona but also in Oregon, Uruguay, and England, among other places in the world.
The article points out that Microsoft "is transitioning some data centers, including those in Arizona, to designs that use less or no water, cooling themselves instead with giant fans." And an analysis (commissioned by Microsoft) on the impact of one building said it would use about 56 million gallons of drinking water each year, equivalent to the amount used by 670 families, according to the article. "In other words, a campus of servers pumping out ChatGPT replies from the Arizona desert is not about to make anyone go thirsty."

Microsoft is "delighted to introduce some useful new features" for its "Copilot Preview for Windows 11," according to a recent blog post.

TechRepublic adds that "most features will be enabled by default... rolling out from today until April 2024." Windows 11 users will be able to change system settings through prompts typed directly into Copilot in Windows, currently accessible in the Copilot Preview via an icon on the taskbar, or by pressing Windows + C. Microsoft Copilot will be able to perform the following actions:

- Turn on/off battery saver.
- Show device information.
- Show system information.
- Show battery information.
- Open storage page.
- Launch Live Captions.
- Launch Narrator.
- Launch Screen Magnifier.
- Open Voice Access page.
- Open Text size page.
- Open contrast themes page.
- Launch Voice input.
- Show available Wi-Fi network.
- Display IP Address.
- Show Available Storage.

The new third-party app integrations for Copilot will give Windows 11 users new ways to interact with various applications. For example, making business lunch reservations through OpenTable...

Other new AI features for Windows 11 rolling out today include a new, AI-powered Generative Erase tool, which sounds reminiscent of Google's Magic Eraser tool for Google Photos. Generative Erase allows users to remove unwanted objects or artifacts from their photos in the Photos app.

Likewise, Microsoft's video editing tool Clipchamp is receiving a Silence Removal tool, which functions much as the name implies  — it allows users to remove gaps in conversation or audio from a video clip.

Voice access is another focal point of Microsoft's latest Windows 11 update, detailed in a separate blog post by Windows Commercial Product Marketing Manager Harjit Dhaliwal. Users can now use voice controls to navigate between multiple displays, aided by number and grid overlays that provide easy switching between screens.
A Copilot icon has already started appearing in the taskbar of some Windows systems. If you Google "microsoft installs copilot preview windows," Google adds these helpful suggestions.

People also ask: Why is Copilot preview on my computer?

How do I get rid of Copilot preview on Windows 10?

"Apparently there was some sort of update..." writes one Windows users. "Anyway, there is a logo at the bottom of the screen that is distracting and I'd like to get rid of it."

Lifehacker has already published an article titled "How to Hide (or Disable) Copilot in Windows 11."

"Artificial intelligence is feeling harder and harder to avoid," it begins, "but you still have options."

An upcoming April release of Copilot for OneDrive will be able to find, summarize, and extract information from a wide range of files, including text documents, presentations, spreadsheets, HTML pages and PDF files. "Users can ask Copilot to tailor summaries to their liking, such as only including key points or highlights from a specific section," reports The Verge. From the report: The chatbot will also be able to respond to natural language prompts and answer highly specific questions about the contents of a user's files. Some examples given by Microsoft included asking Copilot to tabulate a week's worth of beverage sales and throw the data in a table view by day. Or, asking it to list the pros and cons of a project, or display the most recent or relevant files. Users can even ask Copilot for advice on how to make their documents better. Copilot on OneDrive will also be able to create outlines, tables, and lists for users, based on existing files. A few examples given were:

- Using the /sales-enablement.docx as reference, create an outline of a sales pitch to a new customer.
- For these selected resumes, create a table with names, current title, years of experience, educational qualifications, and current location.
- Create a list of frequently asked questions about project Moonshot.

Elon Musk has sued OpenAI, its co-founders Sam Altman and Greg Brockman and affiliated entities, alleging the ChatGPT makers have breached their original contractual agreements by pursuing profits instead of the non-profit's founding mission to develop AI that benefits humanity. TechCrunch: Musk, a co-founder and early backer of OpenAI, claims Altman and Brockman convinced him to help found and bankroll the startup in 2015 with promises it would be a non-profit focused on countering the competitive threat from Google. The founding agreement required OpenAI to make its technology "freely available" to the public, the lawsuit alleges.

The lawsuit, filed in a court in San Francisco late Thursday, says that OpenAI, the world's most valuable AI startup, has shifted to a for-profit model focused on commercializing its AGI research after partnering with Microsoft, the world's most valuable company that has invested about $13 billion into the startup. "In reality, however, OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft. Under its new board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity," the lawsuit adds. "This was a stark betrayal of the Founding Agreement."

Microsoft has outlined a new Windows API designed to offer a seamless way for game developers to integrate super resolution AI-upscaling features from Nvidia, AMD, and Intel. From a report: In a new blog post, program manager Joshua Tucker describes Microsoft's new DirectSR API as the "missing link" between games and super resolution technologies, and says it should provide "a smoother, more efficient experience that scales across hardware."

"This API enables multi-vendor SR [super resolution] through a common set of inputs and outputs, allowing a single code path to activate a variety of solutions including Nvidia DLSS Super Resolution, AMD FidelityFX Super Resolution, and Intel XeSS," the post reads. The pitch seems to be that developers will be able to support this DirectSR API, rather than having to write code for each and every upscaling technology.

The blog post comes a couple of weeks after an "Automatic Super Resolution" feature was spotted in a test version of Windows 11, which promised to "use AI to make supported games play more smoothly with enhanced details." Now, it seems the feature will plug into existing super resolution technologies like DLSS, FSR, and XeSS rather than offering a Windows-level alternative.

Jacob Kaplan-Moss, one of the lead developers of Django, writes in a long post that he says has come from a place of frustration: [...] Instead, every time a maintainer finds a way to get paid, people show up to criticize and complain. Non-OSI licenses "don"t count" as open source. Someone employed by Microsoft is "beholden to corporate interests" and not to be trusted. Patreon is "asking for handouts." Raising money through GitHub sponsors is "supporting Microsoft's rent-seeking." VC funding means we're being set up for a "rug pull" or "enshitification." Open Core is "bait and switch."

None of this is hypothetical; each of these examples are actual things I've seen said about maintainers who take money for their work. One maintainer even told me he got criticized for selling t-shirts! Look. There are absolutely problems with every tactic we have to support maintainers. It's true that VC investment comes with strings attached that often lead to problems down the line. It sucks that Patreon or GitHub (and Stripe) take a cut of sponsor money. The additional restrictions imposed by PolyForm or the BSL really do go against the Freedom 0 ideal. I myself am often frustrated by discovering that some key feature I want out of an open core tool is only available to paid licensees.

But you can criticize these systems while still supporting and celebrating the maintainers! Yell at A16Z all you like, I don't care. (Neither do they.) But yelling at a maintainer because they took money from a VC is directing that anger in the wrong direction. The structural and societal problems that make all these different funding models problematic aren't the fault of the people trying to make a living doing open source. It's like yelling at someone for shopping at Dollar General when it's the only store they have access to. Dollar General's predatory business model absolutely sucks, as do the governmental policies that lead to food deserts, but none of that is on the shoulders of the person who needs milk and doesn't have alternatives.

The Intercept, Raw Story, and AlterNet have filed separate lawsuits against OpenAI and Microsoft, alleging copyright infringement and the removal of copyright information while training AI models. The Verge reports: The publications said ChatGPT "at least some of the time" reproduces "verbatim or nearly verbatim copyright-protected works of journalism without providing author, title, copyright or terms of use information contained in those works." According to the plaintiffs, if ChatGPT trained on material that included copyright information, the chatbot "would have learned to communicate that information when providing responses."

Raw Story and AlterNet's lawsuit goes further (PDF), saying OpenAI and Microsoft "had reason to know that ChatGPT would be less popular and generate less revenue if users believed that ChatGPT responses violated third-party copyrights." Both Microsoft and OpenAI offer legal cover to paying customers in case they get sued for violating copyright for using Copilot or ChatGPT Enterprise. The lawsuits say that OpenAI and Microsoft are aware of potential copyright infringement. As evidence, the publications point to how OpenAI offers an opt-out system so website owners can block content from its web crawlers. The New York Times also filed a lawsuit in December against OpenAI, claiming ChatGPT faithfully reproduces journalistic work. OpenAI claims the publication exploited a bug on the chatbot to regurgitate its articles.

An anonymous reader shares a report: Microsoft is already testing Windows 11 24H2, this fall's big new Windows release. The company has already demonstrated a few new features, like 80Gbps USB4 support and Sudo for Windows, and the new version could also give a significant refresh to the Windows installer for the first time since the Windows Vista days. But there's one big update you might not notice at all. Late last week, Microsoft released "servicing updates" with no new features to Windows Insiders in the Dev and Canary channels. The updates were "designed to test [Microsoft's] servicing pipeline for Windows 11." It's pretty common for Insiders to get these kinds of updates-that-exist-only-to-test-the-update-process, but the twist here is that PCs with Virtualization Based Security (VBS) enabled could apply the update without rebooting.

Sources speaking to Windows Central say this isn't a fluke -- Microsoft reportedly intends to use a Windows Server feature called hotpatching to deliver more Windows 11 security updates without requiring a reboot, making it easier to stay up to date without disrupting whatever you're doing. You'll still need to reboot "every few months" -- Microsoft's documentation says a reboot is needed roughly once every three months, though it can happen more often than that for unanticipated zero-day patches and others that can't be fixed via hotpatching. The Arm versions of Windows 11 also won't get the feature for another year or so, according to Windows Central.

OpenAI has asked a federal judge to dismiss parts of the New York Times' copyright lawsuit against it, arguing that the newspaper "hacked" its chatbot ChatGPT and other AI systems to generate misleading evidence for the case. From a report: OpenAI said in a filing in Manhattan federal court on Monday that the Times caused the technology to reproduce its material through "deceptive prompts that blatantly violate OpenAI's terms of use."

"The allegations in the Times's complaint do not meet its famously rigorous journalistic standards," OpenAI said. "The truth, which will come out in the course of this case, is that the Times paid someone to hack OpenAI's products." OpenAI did not name the "hired gun" who it said the Times used to manipulate its systems and did not accuse the newspaper of breaking any anti-hacking laws.

Alphabet's Google Cloud on Monday ramped up its criticism of Microsoft's cloud computing practices, saying its rival is seeking a monopoly that would harm the development of emerging technologies such as generative AI. From a report: "We worry about Microsoft wanting to flex their decade-long practices where they had a lot of monopoly on the on-premise software before and now they are trying to push that into cloud now," Google Cloud Vice President Amit Zavery said in an interview. "So they are creating this whole walled garden, which is completely controlled and owned by Microsoft, and customers who want to do any of this stuff, you have to go to Microsoft only," he said.

"If Microsoft cloud doesn't remain open, we will have issues and long-term problems, even in next generation technologies like AI as well, because Microsoft is forcing customers to go to Azure in many ways," Zavery said, referring to Microsoft's cloud computing platform. He urged antitrust regulators to act. "I think regulators need to provide some kind of guidance as well as maybe regulations which prevent the way Microsoft is building the Azure cloud business, not allow your on-premise monopoly to bring it into the cloud monopoly," Zavery said.

During a briefing at Mobile World Congress in Barcelona, Meghana Patwardhan, VP of Commercial Mobility at Dell Technology, told The Register that while the immediate future would consist of two worlds -- one with AI hardware and one without -- "every PC is going to be an AI PC in the longer term." From the report: In terms of new hardware, Dell used the Mobile World Congress event in Barcelona to show off new versions of its Surface-baiting Latitude 7350 convertible -- "the world's most serviceable commercial detachable," according to the company -- and its workstation-class Precision 3680 tower. Other devices in the Precision range include mobile workstations and the 3280 Compact Form Factor PC. Dell was also determined to present itself as a leader in hybrid working with the Premier Wireless ANC headset, replete with AI-based noise cancellation.

Duringt our talk, AI was never far from the lips of Dell's spokespeople as the company talked up the energy efficiency and future-proofing it saw in dedicated AI hardware, such as Neural Processing Units (NPUs) that are increasingly cropping up in CPUs. To illustrate the point, Dell boatsed about how much more efficient background blurring is on video calls when AI hardware is running compared to when it isn't. Hopefully, Microsoft will soon deliver a version of Windows capable of demonstrating a use for AI hardware that is more than hiding distractions in the background. Further reading: AI PCs To Account for Nearly 60% of All PC Shipments by 2027, IDC Says

Microsoft offered to sell its Bing search engine to Apple in 2018, Google said in a court filing earlier this month. The document, from Google's antitrust case against the U.S. Justice Department, was unsealed on Friday. From a report: In the filing earlier this month, Google argued that Microsoft pitched Apple in 2009, 2013, 2015, 2016, 2018 and 2020 about making Bing the default in Apple's Safari web browser, but each time, Apple said no, citing quality issues with Bing. "In each instance, Apple took a hard look at the relative quality of Bing versus Google and concluded that Google was the superior default choice for its Safari users. That is competition," Google wrote in the filing.

The Justice Department said in its own newly unsealed filing that Microsoft has spent almost $100 billion on Bing over 20 years. The Windows and Office software maker launched Bing in 2009, following search efforts under the MSN and Windows Live brands. Today Bing has 3% global market share, according to StatCounter. In the fourth quarter, Microsoft generated $3.2 billion from search and news advertising, while Google search and other revenue totaled $48 billion. Google said in its filing that when Microsoft reached out to Apple in 2018, emphasizing gains in Bing's quality, Microsoft offered to either sell Bing to Apple or establish a Bing-related joint venture with the company.

Microsoft has struck a deal with French AI startup Mistral as it seeks to broaden its involvement in the fast-growing industry beyond OpenAI. From a report: The US tech giant will provide the 10-month-old Paris-based company with help in bringing its AI models to market. Microsoft will also take a minor stake in Mistral, although the financial details have not been disclosed. The partnership makes Mistral the second company to provide commercial language models available on Microsoft's Azure cloud computing platform. Microsoft has already invested about $13 billion in San Francisco-based OpenAI, an alliance that is being reviewed by competition watchdogs in the US, EU and UK. Other Big Tech rivals, such as Google and Amazon, are also investing heavily in building generative AI -- software that can produce text, images and code in seconds -- which analysts believe has the capacity to shake up industries across the world. WSJ adds: On Monday, Mistral plans to announce a new AI model, called Mistral Large, that Mensch said can perform some reasoning tasks comparably with GPT-4, OpenAI's most advanced language model to date, and Gemini Ultra, Google's new model. Mensch said his new model cost less than 20 million euros, the equivalent of roughly $22 million, to train. By contrast OpenAI Chief Executive Sam Altman said last year after the release of GPT-4 that training his company's biggest models cost "much more than" $50 million to $100 million.

OpenAI, Microsoft, Nvidia, and Jeff Bezos are all part of a pack of investors in a business "developing human-like robots," reports Bloomberg, "according to people with knowledge of the situation..."

At the startup — which is named "Figure" — engineers "are working on a robot that looks and moves like a human. The company has said it hopes its machine, called Figure 01, will be able to perform dangerous jobs that are unsuitable for people and that its technology will help alleviate labor shortages." Figure is raising about $675 million in a funding round that carries a pre-money valuation of roughly $2 billion, said the people, who asked not to be identified because the matter is private. Through his firm Explore Investments LLC, Bezos has committed $100 million. Microsoft is investing $95 million, while Nvidia and an Amazon.com Inc.-affiliated fund are each providing $50 million... Other technology companies are involved as well. Intel Corp.'s venture capital arm is pouring in $25 million, and LG Innotek is providing $8.5 million. Samsung's investment group, meanwhile, committed $5 million. Backers also include venture firms Parkway Venture Capital, which is investing $100 million, and Align Ventures, which is providing $90 million...

The AI robotics industry has been busy lately. Earlier this year, OpenAI-backed Norwegian robotics startup 1X Technologies AS raised $100 million. Vancouver-based Sanctuary AI is developing a humanoid robot called Phoenix. And Tesla Inc. is working on a robot called Optimus, with Elon Musk calling it one of his most important projects. Agility Robotics, which Amazon backed in 2022, has bots in testing at one of the retailer's warehouses. Bloomberg calls the investments in Figure "part of a scramble to find new applications for artificial intelligence."

jd (Slashdot reader #1,658) writes: The Register has been running a series of articles about the evolution of Unix, from humble beginnings to the transition to Plan9. There is a short discussion of why Plan9 and its successors never really took off (despite being vastly superior to microkernels), along with the ongoing development of 9Front.
From the article: Plan 9 was in some way a second implementation of the core concepts of Unix and C, but reconsidered for a world of networked graphical workstations. It took many of the trendy ideas of late-1980s computing, both of academic theories and of the computer industry of the time, and it reinterpreted them through the jaded eyes of two great gurus, Kenneth Thompson and Dennis Ritchie (and their students) — arguably, design geniuses who saw their previous good ideas misunderstood and misinterpreted.

In Plan 9, networking is front and center. There are good reasons why this wasn't the case with Unix — it was being designed and built at the same time as local area networking was being invented. UNIX Fourth Edition, the first version written in C, was released in 1973 — the same year as the first version of Ethernet.

Plan 9 puts networking right into the heart of the design. While Unix was later used as the most common OS for standalone workstations, Plan 9 was designed for clusters of computers, some being graphical desktops and some shared servers...

Because everything really is a file, displaying a window on another machine can be as simple as making a directory and populating it with some files. You can start programs on other computers, but display the results on yours — all without any need for X11 or any visible networking at all.

This means all the Unixy stuff about telnet and rsh and ssh and X forwarding and so on just goes away. It makes X11 look very overcomplicated, and it makes Wayland look like it was invented by Microsoft.

Long-time Slashdot reader theodp writes: In 2012, Microsoft President Brad Smith unveiled Microsoft's National Talent Strategy, which called for K-12 Computer Science education for U.S. schoolchildren to address a "talent crisis [that] endangers long-term growth and prosperity". The following year, tech-backed nonprofit Code.org burst onto the scene to deliver that education to schoolchildren, with Smith and execs from tech giants Google and Amazon on its Board of Directors (and Code.org donors Bill Gates and Mark Zuckerberg as lead K-12 CS instructors).

Using a mix of paid individuals, universities and other organizations that it helped to fund, along with online self-paced courses, Code.org boasts it quickly "prepared more than 106,000 new teachers to teach CS across grades K-12" through its professional learning programs. "No computer science experience required," Code.org teases prospective K-12 teachers (as does Code.org partner Amazon Future Engineer). Code.org organized K-12 CS teacher workforce expansion workshops.

However, at least one state is taking steps to put an end to the practice of rebranding individuals as K-12 CS teachers in as little as a day, albeit with a generous 10-year loophole for currently uncertified K-12 CS teachers. "At the start of the 2024-2025 academic year," reports GovTech, "the New York State Education Department (NYSED) is honing its credential requirements for computer science teachers, though the state has yet to join the growing list of those mandating computer science instruction for high school graduation. According to the department's website, as of Sept. 1, 2024, educators who teach computer science will need either a Computer Science Certificate issued by the state Board of Regents or a Computer Science Statement of Continued Eligibility (SOCE), which may be given to instructors who don't have the specific certificate but have nonetheless taught computer science since Sept. 1, 2017....

"The NYSED website says the SOCE is a temporary measure that will be phased out after 10 years, at which point all computer science instructors will need a Computer Science Certificate."

Windows 11 users still clinging to the past are to be dragged into a bright, 23H2-shaped future by Microsoft, whether they want to or not. From a report: Microsoft has added a notification to its Release Health dashboard warning Windows 11 users that it is time for the beatings automatic upgrades to begin. "We are starting to update eligible Windows 11 devices automatically to version 23H2."

As for what eligible means, according to Microsoft, this is "Windows 11 devices that have reached or are approaching end of servicing." Support for Windows 11 21H2 came to an end last year on October 10, 2023, and version 22H2 is due to end on October 8, 2024. Win 11 23H2 itself will endure until November 11, 2025, or just after the plug gets pulled on Windows 10. The update comes shortly after Microsoft quashed the last of its compatibility holds in Windows 11 23H2, which affected customers attempting to use the Co-pilot preview with multiple monitors. Icons tended to move unexpectedly between monitors.

It's no surprise that the broader tech industry has largely moved away from physical disks to digital subscription-based models. But Microsoft's Gaming CEO Phil Spencer says Xbox isn't trying to do away with disks just yet -- even though making disk slots could become challenging in the future. From a report: "Our strategy does not hinge on people moving all-digital," Spencer said in a recent interview with Game File. "Getting rid of physical, that's not a strategic thing for us." While Spencer implied that disk slots have become somewhat old-school at this point, Xbox consoles will continue to offer both disk-compatible and diskless options if gamers still want to choose. Xbox hasn't confirmed yet whether the previously leaked diskless Xbox refresh of the Series X console is still coming, though.

"Gaming consoles themselves have kind of become the last consumer electronic device that has a drive," Spencer conceded, calling it a "real issue." Because so few manufacturers are still making physical disk slots, it's possible making consoles with them could become cost prohibitive in the future. "When you think about cogs that we're going to go put in a console -- and as you have fewer suppliers and fewer buyers -- the cost of the drive does have an impact," Spencer said.

Intel has landed Microsoft as a customer for its made-to-order chip business, marking a key win for an ambitious turnaround effort under Chief Executive Officer Pat Gelsinger. From a report: Microsoft plans to use Intel's 18A manufacturing technology to make a forthcoming chip that the software maker designed in-house, the two companies said at an event Wednesday. They didn't identify the product, but Microsoft recently announced plans for two homegrown chips: a computer processor and an artificial intelligence accelerator.

Intel has been seeking to prove it can compete in the foundry market, where companies produce custom chips for clients. It's a major shift for the semiconductor pioneer, which once had the world's most advanced chipmaking facilities and kept them to itself. These days, Intel is racing to catch up with companies like Taiwan Semiconductor Manufacturing Co., which leads the foundry industry. Microsoft, meanwhile, is looking to secure a steady supply of semiconductors to power its data-center operations -- especially as demand for AI grows. Designing its own chips also lets Microsoft fine-tune the products to its specific needs. "We need a reliable supply of the most advanced, high-performance and high-quality semiconductors," Microsoft CEO Satya Nadella said in a statement. âoeThat's why we are so excited to work with Intel."