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Microsoft

Microsoft Hiking the Price of Xbox Series X and Xbox Game Pass (theverge.com) 13

Microsoft is increasing its Xbox Series X prices in most countries in August apart from the US, Japan, Chile, Brazil, and Colombia. From a report: The Xbox maker is also increasing the monthly prices of its Xbox Game Pass and Xbox Game Pass Ultimate subscriptions for the first time next month, which will see the base Game Pass subscription for console move up to $10.99 a month from $9.99. "We've held on our prices for consoles for many years and have adjusted the prices to reflect the competitive conditions in each market," says Kari Perez, head of communications for Xbox, in a statement to The Verge. Xbox Series X console pricing will largely match the price hike Sony announced for the PS5 last year, with the Xbox Series X moving to $612 in the UK, $604 across most European markets, CAD $649.99 in Canada, and AUD $799.99 in Australia starting August 1st. The Xbox Series S pricing will not be adjusted in any markets, remaining at $299.99.
Science

Microsoft Says Its Weird New Particle Could Improve Quantum Computers (newscientist.com) 32

An anonymous reader quotes a report from New Scientist: Microsoft researchers have made a controversial claim that they have seen evidence of an elusive particle that could solve some of the biggest headaches in quantum computing, but some experts are questioning the discovery. Quantum computers process information using quantum bits, or qubits, but current iterations can be prone to error. "What the field needs is a new kind of qubit," says Chetan Nayak at Microsoft Quantum. He and his colleagues say they have taken a significant step towards building qubits from quasiparticles, which are not true particles but collective vibrations that can emerge when particles like electrons act together. The quasiparticles in question are called Majorana zero modes, which act as their own antiparticle and have a charge and energy that equate to zero. That makes them resilient to disturbances -- so they could make unprecedentedly reliable qubits -- but also makes them notoriously hard to find. The Microsoft researchers say devices they built exhibited behaviors consistent with Majorana zero modes. The main components of each device were an extremely thin semiconducting wire and a piece of superconducting aluminum.

This isn't the first time Microsoft has claimed to have found Majorana zero modes. A 2018 paper by a different group of researchers at the company was retracted from the scientific journal Nature in 2021 after it didn't hold up to scrutiny. At the time, Sergey Frolovat the University of Pittsburgh in Pennsylvania and his colleagues found that imperfections in the semiconductor wire could produce quantum effects easily mistaken for Majorana zero modes. "To see Majorana zero modes, the wire must be like a very long, very even road with no bumps. If there is any disorder in the wire, electrons can get stuck on these imperfections and assume quantum states that mimic Majorana zero modes," says Frolov. In the new experiment, the team used a more complex test called the topological gap protocol. To pass the test, a device must simultaneously show signatures of Majorana zero modes at each end of the wire, and also show that the electrons are in an energy range where a special kind of superconductivity emerges. "Rather than look for one particular simple signature of Majorana zero modes, we looked for a mosaic of signatures," says Nayak. The researchers tested this protocol on hundreds of computer simulations of devices, which considered any impurities in the wires, before using it on experimental data. Nayak says they calculated that for any device that passed the topological gap protocol, the probability of there not actually being a Majorana zero mode within it was less than 8 per cent.

Not all researchers in the field are convinced.Henry Leggat the University of Basel in Switzerland and his colleagues recently published a set of calculations showing that this test can be fooled by impurities in the wires. "The topological gap protocol as currently implemented is certainly not loophole free," he says. Frolov says that a few details imply that what seem to be Majorana zero modes would be revealed as an effect of disorder if the experiment were repeated with even more sensitive measurements. These include small differences between measurements for the left and right edges of the wire, as well as the measurements of electrons' energies -- the same energies can be indicative of emerging Majorana zero modes or of dirt trapping the electrons. Anton Akhmerovat the Delft University of Technology in the Netherlands says that for him, the new experiment is not viable evidence that Majorana zero modes have been detected until another team of researchers reproduces it. But this may be difficult as some details of how Microsoft's devices were manufactured have not been published on account of being trade secrets, he says.

Google

Google Accuses Microsoft of Anticompetitive Cloud Practices in Complaint To FTC (theinformation.com) 17

After years of publicly alleging that Microsoft used its dominant position in enterprise software to push customers toward Microsoft's cloud services, Google on Tuesday formally filed a complaint to the U.S. Federal Trade Commission, which has been examining such issues, according to a copy of the document reviewed by The Information. From the report: Microsoft used the licensing terms in its Office 365 productivity software to lock customers into separate contracts with its Azure cloud server business, Google's complaint said. Microsoft is the second largest cloud provider after Amazon, and Google is a distant third. Google previously complained about Microsoft's cloud licensing practices to European regulators. Under pressure, last year Microsoft agreed to change its licensing practices in the region to make it more affordable for Azure customers to use additional cloud providers, but the changes didn't apply to U.S. customers.
AI

Ant Developing Large Language Model Technology (bloomberg.com) 7

Jack Ma-backed Ant Group is developing large-language model technology that will power ChatGPT-style services, joining a list of Chinese companies seeking to win an edge in next-generation artificial intelligence. From a report: The project known as "Zhen Yi" is being created by a dedicated unit and will deploy in-house research. An Ant spokesperson confirmed the news which was first reported by Chinastarmarket.cn Ant is racing against companies including its affiliate Alibaba Group Holding Ltd., Baidu and SenseTime. Their efforts mirror developments in US where Alphabet's Google and Microsoft are exploring generative AI, which can create original content from poetry to art just with simple user prompts.
Microsoft

Microsoft Says Early June Disruptions To Outlook, Cloud Platform, Were Cyberattacks (apnews.com) 25

An anonymous reader shares a report: In early June, sporadic but serious service disruptions plagued Microsoft's flagship office suite -- including the Outlook email and OneDrive file-sharing apps -- and cloud computing platform. A shadowy hacktivist group claimed responsibility, saying it flooded the sites with junk traffic in distributed denial-of-service attacks. Initially reticent to name the cause, Microsoft has now disclosed that DDoS attacks by the murky upstart were indeed to blame.

But the software giant has offered few details -- and did not immediately comment on how many customers were affected and whether the impact was global. A spokeswoman confirmed that the group that calls itself Anonymous Sudan was behind the attacks. It claimed responsibility on its Telegram social media channel at the time. Some security researchers believe the group to be Russian. Microsoft's explanation in a blog post Friday evening followed a request by The Associated Press two days earlier. Slim on details, the post said the attacks "temporarily impacted availability" of some services. It said the attackers were focused on "disruption and publicity" and likely used rented cloud infrastructure and virtual private networks to bombard Microsoft servers from so-called botnets of zombie computers around the globe.

AI

Hey Alexa, What Should Students Learn About AI? (nytimes.com) 22

Long-time Slashdot reader theodp writes: While schools debate what to teach students about powerful new A.I. tools, tech giants, universities and nonprofits are intervening with free lessons," writes the NY Times reports in Hey, Alexa, What Should Students Learn About AI?
Senior Amazon executive Rohit Prasad visited a school in Boston called STEM Academy to observe an Amazon-sponsored AI lesson using Alexa, according to the article, "And he assured the Dearborn students there would soon be millions of new jobs in A.I." "We need to create the talent for the next generation," Mr. Prasad, the head scientist for Alexa, told the class. "So we are educating about A.I. at the earliest, grass-roots level."

A few miles away, Sally Kornbluth, the president of the Massachusetts Institute of Technology, was delivering a more sobering message about A.I. to students from local schools who had gathered at Boston's Kennedy Library complex for a workshop on A.I. risks and regulation. "Because A.I. is such a powerful new technology, in order for it to work well in society, it really needs some rules," Dr. Kornbluth said. "We have to make sure that what it doesn't do is cause harm."

The same-day events — one encouraging work in artificial intelligence and the other cautioning against deploying the technology too hastily — mirrored the larger debate currently raging in the United States over the promise and potential peril of A.I. Both student workshops were organized by an M.I.T. initiative on "responsible A.I." whose donors include Amazon, Google and Microsoft.

The article emphasizes that schools face a big question: Should they teach AI programming and other AI-related skills employers will seek? "Or should students learn to anticipate and mitigate A.I. harms?"

Last week, Amazon agreed to pay $25 million to settle federal charges that it had indefinitely kept children's voice recordings, violating the federal online children's privacy law. The company said it disputed the charges and denied that it had violated the law. The company noted that customers could review and delete their Alexa voice recordings. But the one-hour Amazon-led workshop did not touch on the company's data practices.
The Courts

Trial Lawyer Went After Crypto Companies. Then Someone Went After Him. (sfgate.com) 49

Trial lawyer Kyle Roche has led an interesting life, according to the New York Times. He once earned $100 million selling bitcoin. He helped win a case against Craig Wright (who claims to be Bitcoin creator Satoshi Nakamoto) through his law firm Roche Freedman. And Roche also founded a startup that lets people bet on the outcome of (civil) lawsuits, "to make access to justice more affordable."

But something very bad for his career happened in January of 2022 when two businessmen flew Roche from Miami to the U.K. to discuss an investment. When he woke up the next morning, Roche said, he felt groggy... The brain fog was odd because he didn't think he'd had all that much to drink. As he flew back to Miami a few days later, Roche couldn't shake the feeling that something was amiss.

Months passed. Then, one day last summer, Roche's world detonated. A website called Crypto Leaks posted two dozen videos of him that had been secretly recorded during his meetings with Villavicencio and Ager-Hanssen. The videos portrayed Roche and his law firm, Roche Freedman, as being in the pocket of one of their crypto clients [Ava Labs]... In other clips, Roche made it sound like his sole concern, even when representing other clients, was to promote Ava Labs' interests...

One after another, companies that Roche Freedman had sued filed motions to disqualify the firm from their cases. In October, the first of those motions succeeded: A federal judge in New York tossed Roche Freedman from a case it had filed against Tether, the operator of the world's most used "stablecoin." Within days, Roche was forced to resign from the law firm he had founded. With his career in tatters, he said, he enrolled in ethics classes and began to see a therapist.

Roche calls the recorded remarks baseless bluster to impress a prospective investor (and alleges in court there are signs of deep fake alterations). While Roche "was felled by his own loose lips and his overly cozy relationship with a client," the Times reports "he also was the victim of an elaborate international setup." On April 3, 2020, Roche Freedman filed lawsuits seeking class-action status against seven issuers of digital coins, alleging they had pumped what amounted to unregistered securities with false statements and then dumped them, leaving retail investors holding the bag... Those suits were just an opening salvo: Sixteen months later, Roche filed his biggest securities fraud case yet. It alleged that a British entrepreneur, Dominic Williams, and entities he controlled had swindled investors out of billions of dollars by aggressively promoting, and then dumping, a digital coin tied to a grandiose plan to revolutionize computing. Williams had boldly proclaimed that his Internet Computer blockchain — a decentralized network of computers powered by a digital token called ICP — would supplant the big cloud services offered by Amazon and Microsoft and become humanity's primary computing platform. But after an initial surge that briefly made it one of the most valuable cryptocurrencies, ICP had plummeted 92% — a collapse that Roche's lawsuit attributed to "massive" selling by Williams and other insiders. (Williams denied the allegations.)
The Times reports that Roche's prospective investor Ager-Hanssen, "in addition to running his venture capital firm, has long had a sideline digging up dirt on behalf of wealthy clients entangled in business disputes in Britain and Scandinavia. On multiple occasions, he has secretly recorded his targets. For example, in a 2014 interview, he recounted how he had snared the adversary of a Swedish financier with a hidden microphone and boasted that he employed former intelligence officers from the CIA, MI6 and Mossad..." Roche believes them because he thinks he knows who hired Ager-Hanssen: Williams, the British entrepreneur who was the target of Roche Freedman's biggest pump-and-dump lawsuit... On May 12, 2022, Williams wrote on Twitter that he was "coming for" his critics. That was the same day the cryptoleaks.info domain name was registered. That was the same day the cryptoleaks.info domain name was registered. Then, on June 9, 2022, the Crypto Leaks website went live. Billing itself as the defender of "the honest crypto community," it posted two reports that aligned with Williams' interests...

The first espoused a complicated theory about the ICP token crash that Williams had previously floated on Twitter. The second attacked the Times for an article it had published about the crash. Williams tweeted a link to that Crypto Leaks report, calling it "Gobsmacking." The Dfinity Foundation, a Swiss nonprofit that Williams created to oversee his blockchain, has since sued the Times for defamation in New York. The Times is seeking to dismiss the suit. The videos of Roche were the crux of Crypto Leaks' third exposé. After they were published, Williams and Dfinity filed a motion to disqualify Roche Freedman as plaintiffs' counsel in the pump-and-dump lawsuit, saying Roche's comments demonstrated "a disregard for the integrity of the judicial system...."

Last month, the judge overseeing the pump-and-dump case granted Williams' motion and disqualified Freedman Normand Friedland as plaintiffs' counsel.

China

Cringely Predicts Moore's Law Will Continue -- Because of AI (cringely.com) 35

"I predict that Generative Artificial Intelligence is going to go a long way toward keeping Moore's Law in force," writes long-time tech pundit Robert X. Cringely, "and the way this is going to happen says a lot about the chip business, global economics, and Artificial Intelligence, itself." The current el cheapo AI research frenzy is likely to subside as LLaMA ages into obsolescence and has to be replaced by something more expensive, putting Google, Microsoft and OpenAI back in control. Understand, too, that these big, established companies like the idea of LLMs costing so much to build because that makes it harder for startups to disrupt. It's a form of restraint of trade, though not illegal...

[T]here is an opportunity for vertical LLMs trained on different data — real data from industries like medicine and auto mechanics. Whoever owns this data will own these markets. What will make these models both better and cheaper is they can be built from a LLaMA base because most of that data doesn't have to change over time... Bloomberg has already done this for investment advice using its unique database of historical financial information. With an average of 50 billion nodes, these vertical models will cost only five percent as much to run as OpenAI's one billion node GPT-4...

[I]t ought to be pretty simple to apply AI to chip design, building custom chip design models to iterate into existing simulators and refine new designs that actually have a pretty good chance of being novel.

And who will be the first to leverage this chip AI? China... Look for fabless AI chip startups to spring-up around Chinese universities and for the Chinese Communist Party to put lots of money into this very cost-effective work. Because even if it's used just to slim-down and improve existing designs, that's another generation of chips China might otherwise not have had at all.

Businesses

What Happens When You Ask Alexa if Amazon is a Monopoly? (stltoday.com) 43

An anonymous reader shared this report from Bloomberg: Ask Amazon's digital assistant, "Hey, Alexa, is Amazon a monopoly?" and it will profess ignorance.

"Hmm, I don't know that one," it answers.

But ask about any of the other tech giants' business practices, and it's ready to critique them. Surfacing answers from across the internet, Alexa describes Apple as an "oligopoly" and cites Alphabet's Google as violating privacy rights, according to Bloomberg News tests of the software on three devices.... [Alexa] won't label Amazon a monopoly, but it tends to respond in the affirmative when asked the same question about Google, Meta's Facebook, Microsoft and Walmart. When Alexa is asked if Amazon has broken antitrust law, it says, "I don't have an answer to the question I just heard."

Google's Assistant and Apple's Siri, Alexa's two closest competitors, each cite news stories on government antitrust lawsuits against their companies. Siri, for the most part, offers up criticisms of the iPhone maker. But it evades at least one question about Apple's power. When asked whether Apple is a monopoly, Siri often replies, "I can't answer that, but Apple.com should be able to...."

Alexa also cites alleged privacy lapses by its rivals, bringing up a Facebook privacy settlement with the FTC and allegations that Apple's finger-scanning technology violates constitutional rights. When users ask whether Amazon violates users' privacy, Alexa sticks up for its safeguards: "Amazon builds multiple layers of privacy protections into your Alexa experience." It also links to an Amazon website with more information about Alexa's privacy settings.

Bug

Windows 11 Update Breaks Chrome for Some Antivirus Software Users (bleepingcomputer.com) 49

Wednesday BleepingComputer reported: Malwarebytes confirmed today that the Windows 11 22H2 KB5027231 cumulative update released this Patch Tuesday breaks Google Chrome on its customers' systems... While uninstalling the KB5027231 update fixes the issue, admins report that it's not possible to do so via Windows Server Update Services because of a "catastrophic error..." The Google Chrome process is actually running but is prevented from fully launching the application and loading the user interface due to the conflict.
Then Friday BleepingComputer reported that the same update "also breaks Google Chrome on systems protected by Cisco and WatchGuard EDR and antivirus solutions." "We deploy Secure Endpoint 8.1.7 to our few thousand devices, and we started getting a mountain of reports this morning that Google Chrome would not appear on the screen after attempting to open it," one admin said. "With a little trial & error, I found that killing the Secure Endpoint service or uninstalling Secure Endpoint will allow Chrome to open again..."

WatchGuard staff also confirmed on Friday that Google Chrome wouldn't open on Windows 11 after installing KB5027231 if anti-exploit protection is enabled in the company's Endpoint Security software.

Thanks to Slashdot reader boley1 for sharing the news.
Businesses

Xi Jinping Tells Bill Gates He Welcomes US AI Tech In China (reuters.com) 17

Chinese President Xi Jinping met with Bill Gates to discuss the global rise of artificial intelligence, expressing his support for U.S. companies bringing their AI technology to China. Reuters reports: Xi also discussed Microsoft's business development in China during their meeting in Beijing, one of the sources said. The comments on AI made at the meeting between Xi and Gates were not disclosed in reports of the meeting published by Chinese state media or in a Friday post by Gates reflecting on his China trip. Xi has previously said China needs to seize opportunities to use AI to drive economic development, but has also cautioned about its risks, with the country weighing up a new law on the technology as well as rules for generative AI.
XBox (Games)

Microsoft Is No Longer Making New Games For the Xbox One (engadget.com) 10

Microsoft says it is no longer making games for the Xbox One but will continue to support ongoing previous-generation titles like Minecraft and Halo Infinite. Engadget reports: "We've moved on to gen 9," Xbox Game Studios head Matt Booty told Axios, referring to the Xbox Series X/S consoles. The company also makes its games for PC. This move had to happen at some point to avoid newer and more complex games being hamstrung by the hardware limitations of the decade-old Xbox One. Still, it'll be possible for those clinging onto an Xbox One to play Series X/S titles such as Starfield and Forza Motorsport through Xbox Cloud Gaming. "That's how we're going to maintain support," Booty said.

The move away from Xbox One will free Microsoft's teams from the shackles of the previous generation. However, some third-party developers have raised concerns that the Xbox Series S, which is less powerful than the Series X, is holding them back too. Booty conceded that making sure games run well on the Series S requires "more work." Still, he noted Microsoft's studios (particularly those working on their second games for this generation of consoles) are now able to better optimize their projects for the Series S.

China

Xi Tells Gates China Is Willing To Engage in Tech Cooperation (bloomberg.com) 60

President Xi Jinping said China is willing to work with the world on technology innovation and global challenges including pandemic prevention during a meeting with American billionaire Bill Gates. From a report: "You are the first American friend I've met in Beijing this year," Xi told the Microsoft co-founder on Friday, according to state broadcaster China Central Television. "I've always said that the foundation of China-US ties lies among the people," the Chinese leader added. "We always pin our hopes on American people and hope the two peoples can continue to be friendly." China's top diplomat Wang Yi and Foreign Secretary Qin Gang attended the meeting. Xi's sit down with Gates raises expectations for the Chinese leader to meet with US Secretary of State Antony Blinken who is set to visit Beijing on a two-day trip from Sunday. That rescheduled visit aims to reset ties between the world's largest economies, after a spat over an alleged Chinese spy balloon derailed high-level exchanges earlier this year.
Microsoft

Microsoft Teams Integration Is Being Removed From Windows 11 60

Microsoft is removing its built-in Microsoft Teams client in Windows 11. "The Chat functionality will be replaced with the more flexible free version of Microsoft Teams that's also available as an app for Windows 10," reports The Verge. The changes were announced in a new Windows 11 test build this week. From the report: The original Teams integration in Windows 11, named Chat, was deeply woven into the operating system. Enabled by default, the Chat app was pinned to the taskbar and you'd have to dig into Settings to remove it. Chat offers consumers a way to use Microsoft Teams to contact friends and family. It was weirdly limited to just consumers though, making it useless for the vast majority of Microsoft Teams users that use the work version of the app. Windows 11 users could also end up with two confusing versions of Teams installed to handle work calls and personal ones.

Up until today, Microsoft had been continually adding new features to Chat inside Windows 11, with improved video calling features in October and Discord-like communities and an AI art tool earlier this month. The built-in Chat functionality in Windows 11 was based on the Microsoft Teams 2.0 client, which served as the foundation for the new Microsoft Teams app that's rolling out to businesses at the moment.
Security

US Government Agencies Hit In Global Cyberattack (cnn.com) 19

An anonymous reader quotes a report from CNN: Several US federal government agencies have been hit in a global cyberattack that exploits a vulnerability in widely used software, according to a top US cybersecurity agency. The US Cybersecurity and Infrastructure Security Agency "is providing support to several federal agencies that have experienced intrusions affecting their MOVEit applications," Eric Goldstein, the agency's executive assistant director for cybersecurity, said in a statement on Thursday to CNN, referring to the software impacted. "We are working urgently to understand impacts and ensure timely remediation." It was not immediately clear if the hackers responsible for breaching the federal agencies were a Russian-speaking ransomware group that has claimed credit for numerous other victims in the hacking campaign.

Agencies were much quicker Thursday to deny they'd been affected by the hacking than to confirm they were. The Transportation Security Administration and the State Department said they were not victims of the hack. CISA Director Jen Easterly told MSNBC on Thursday that she was "confident" that there will not be "significant impacts" to federal agencies from the hacks because of the government's defensive improvements. But the news adds to a growing tally of victims of a sprawling hacking campaign that began two weeks ago and has hit major US universities and state governments. The hacking spree mounts pressure on federal officials who have pledged to put a dent in the scourge of ransomware attacks that have hobbled schools, hospitals and local governments across the US.

The new hacking campaign shows the widespread impact that a single software flaw can have if exploited by skilled criminals. The hackers -- a well-known group whose favored malware emerged in 2019 -- in late May began exploiting a new flaw in a widely used file-transfer software known as MOVEit, appearing to target as many exposed organizations as they could. The opportunistic nature of the hack left a broad swath of organizations vulnerable to extortion. Progress, the US firm that owns the MOVEit software, has also urged victims to update their software packages and has issued security advice.

Microsoft

Microsoft Launched Bing Chatbot Despite OpenAI Warning It Wasn't Ready 23

According to a report from the Wall Street Journal, the partnership between Microsoft and OpenAI has become "awkward" due to tension and confusion. Ars Technica reports: Not only has this tension and confusion extended to Microsoft's internal AI team -- which apparently is dealing with budget cuts and limited access to OpenAI technology -- but sources said it also clouded Microsoft's controversial rollout of AI-powered Bing search last February. At that time, Bing was found to be vulnerable to prompt injection attacks revealing company secrets and providing sometimes inaccurate and truly unhinged responses to user prompts. According to WSJ, OpenAI warned Microsoft "about the perils of rushing to integrate OpenAI's technology without training it more" and "suggested Microsoft move slower on integrating its AI technology with Bing." A top concern for OpenAI was that Bing's chatbot, Sydney, might give inaccurate or unhinged responses, but this early warning seemingly was easily ignored by Microsoft. In a Wired interview published today, Microsoft CEO Satya Nadella suggested that any hiccups with Sydney at first were just part of Microsoft's plan for training the chatbot to respond to real-world prompts that couldn't be tested in a lab. "We did not launch Sydney with GPT-4 the first day I saw it, because we had to do a lot of work to build a safety harness," Nadella told Wired. "But we also knew we couldn't do all the alignment in the lab. To align an AI model with the world, you have to align it in the world and not in some simulation."

So that's partly why Microsoft rushed ahead anyway, but sources told WSJ that the rush was also partly due to Microsoft executives who had "misgivings about the timing of ChatGPT's launch last fall." Because OpenAI started ChatGPT's public testing while Microsoft was still working on integrating OpenAI tech into Bing, tension seemingly spiked between the partners, who also stood as rivals in an AI race to capture the world's attention. As ChatGPT's success grew, some Microsoft employees raised concerns that ChatGPT was stealing Bing's "thunder," WSJ reported. Others sensibly posited that Microsoft could learn valuable lessons ahead of Bing's rollout from ChatGPT's early public testing. [...] Of course, ChatGPT ultimately won the AI race, instantly attracting the fastest-growing user base in history. Meanwhile, "the new Bing," released a month later, "has yet to come close to the breakout success of ChatGPT," WSJ reported. Citing data from analytics firm YipitData, WSJ reported that ChatGPT "has nearly double the average number of daily search sessions as Bing search does."

Further tension and confusion has brewed within Microsoft's in-house AI team, which has "complained about diminished spending." Most employees are set back by a lack of "access to the inner workings" of OpenAI's technology, which is particularly painful for employees attempting to integrate that tech into various Microsoft products. There's also the awkward reality that OpenAI's and Microsoft's sales teams "sometimes pitch the same customers." Much of this "drama" amounts to typical infighting that happens any time two companies pair up, WSJ reported, but there's no ignoring the conflict inherent to both sides attempting to maintain independence while reaping maximum profits by selling access to the same technology. Despite these tensions, Nadella told Wired that OpenAI "bet on" Microsoft, and Microsoft "bet on" OpenAI. He still envisions "a good commercial partnership" between the independent companies and considered Microsoft's investment in OpenAI as "a long-term stable deal." Increasingly, it looks like one way to assuage tension is to bring the companies even closer together in partnership. WSJ noted that Nadella announced last month that the Bing search engine would soon be integrated into ChatGPT, which he said was "just the start of what we plan to do with our partners in OpenAI to bring the best of Bing to the ChatGPT experience."
Microsoft

Microsoft Now Sells Surface Replacement Parts, Including Displays, Batteries, and SSDs (theverge.com) 18

Microsoft is starting to sell replacement components for its Surface devices. The software giant now supplies replacement parts in the Microsoft Store, allowing Surface owners to replace their displays, batteries, SSDs, and more. From a report: "We are excited to offer replacement components to technically inclined consumers for out-of-warranty, self repair," says Tim McGuiggan, VP of devices services and product engineering at Microsoft. "When purchasing a replacement component, you will receive the part and relevant collateral components (such as screws if applicable)." Tools to help you repair a Microsoft Surface device are sold separately by iFixit, which Microsoft partnered with in 2021 to sell official Surface repair tools. iFixit supplies tools like battery covers to protect against punctures during repair, debonding cradles to help cut the adhesive that holds screen glass in place, and a tool to properly replace a screen.
Businesses

US Judge Temporarily Blocks Microsoft Acquisition of Activision (reuters.com) 40

A U.S. judge has granted the FTC request to temporarily block Microsoft's acquisition of Activision Blizzard, scheduling a hearing for a preliminary injunction and preventing the deal from closing until a court ruling is made. Reuters reports: U.S. District Judge Edward Davila scheduled a two-day evidentiary hearing on the FTC's request for a preliminary injunction for June 22-23 in San Francisco. Without a court order, Microsoft could have closed on the $69 billion deal as early as Friday. Davila said the temporary restraining order "is necessary to maintain the status quo while the complaint is pending (and) preserve this court's ability to order effective relief in the event it determines a preliminary injunction is warranted and preserve the FTC's ability to obtain an effective permanent remedy in the event that it prevails in its pending administrative proceeding."

Microsoft and Activision must submit legal arguments opposing a preliminary injunction by June 16; the FTC must reply on June 20. Davila said the bar on closing will remain in place until at least five days after the court rules on the preliminary injunction request. The case reflects the muscular approach to antitrust enforcement taken by the administration of U.S. President Joe Biden.

Government

Microsoft Is Bringing OpenAI's GPT-4 AI Model To US Government Agencies (bloomberg.com) 8

Microsoft will make it possible for users of its Azure Government cloud computing service, which include a variety of US agencies, to access artificial intelligence models from ChatGPT creator OpenAI. From a report: Microsoft, which is the largest investor in OpenAI and uses its technology to power its Bing chatbot, plans to announce Wednesday that Azure Government customers can now use two of OpenAI's large language models: The startup's latest and most powerful model, GPT-4, and an earlier one, GPT-3, via Microsoft's Azure OpenAI service.

The Redmond, Washington-based company plans Wednesday to release a blog post, viewed by Bloomberg, about the program, although its doesn't name specific US agencies expected to use the large language models at launch. The Defense Department, the Energy Department and NASA are among the federal government customers of Azure Government. The Defense Technical Information Center -- a part of the Defense Department that focuses on gathering and sharing military research -- will be experimenting with the OpenAI models through Microsoft's new offering, a DTIC official confirmed.

AI

Four-week-old AI Startup Raises Record $113.3 Million in European Push 23

A French start-up founded four weeks ago by a trio of former Meta and Google artificial intelligence researchers has raised $113.3 million in Europe's largest-ever seed round. From a report: Mistral AI's first round of financing values the Paris-based concern at $259 million, including the funds raised, according to people close to the company. The record amount raised highlights the growing frenzy surrounding AI and Europe's desire to create a viable alternative to Silicon Valley companies such as Microsoft-backed OpenAI and Google's DeepMind.

"There is a rising awareness of the fact that this technology is transformative and Europe needs to do something about it, both as a regulator, as a customer and an investor," said Arthur Mensch, Mistral's chief executive. The former DeepMind researcher founded the start-up with Timothee Lacroix and Guillaume Lample, who both recently left Meta after working at Facebook's parent company for the past few years. [...] Mistral has yet to develop its first product, and its first few employees started work only days ago. It plans to launch early next year a new "large language model," similar to the "generative AI" system that powers OpenAI's breakout ChatGPT app.

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