OpenAI is currently in "a tough negotiation" with Microsoft, the Financial Times reports, citing "one person close to OpenAI."

On the road to building artificial general intelligence, OpenAI hopes to unlock new funding (and launch a future IPO), according to the article, which says both sides are at work "rewriting the terms of their multibillion-dollar partnership in a high-stakes negotiation...."

Microsoft, meanwhile, wants to protect its access to OpenAI's cutting-edge AI models... [Microsoft] is a key holdout to the $260bn start-up's plans to undergo a corporate restructuring that moves the group further away from its roots as a non-profit with a mission to develop AI to "benefit humanity". A critical issue in the deliberations is how much equity in the restructured group Microsoft will receive in exchange for the more than $13bn it has invested in OpenAI to date.

According to multiple people with knowledge of the negotiations, the pair are also revising the terms of a wider contract, first drafted when Microsoft first invested $1bn into OpenAI in 2019. The contract currently runs to 2030 and covers what access Microsoft has to OpenAI's intellectual property such as models and products, as well as a revenue share from product sales. Three people with direct knowledge of the talks said Microsoft is offering to give up some of its equity stake in OpenAI's new for-profit business in exchange for accessing new technology developed beyond the 2030 cut off...

Industry insiders said a failure of OpenAI's new plan to make its business arm a public benefits corporation could prove a critical blow. That would hit OpenAI's ability to raise more cash, achieve a future float, and obtain the financial resources to take on Big Tech rivals such as Google. That has left OpenAI's future at the mercy of investors, such as Microsoft, who want to ensure they gain the benefit of its enormous growth, said Dorothy Lund, professor of law at Columbia Law School.
Lund says OpenAI's need for investors' money means they "need to keep them happy." But there also appears to be tension from how OpenAI competes with Microsoft (like targeting its potential enterprise customers with AI products). And the article notes that OpenAI also turned to Oracle (and SoftBank) for its massive AI infrastructure project Stargate. One senior Microsoft employee complained that OpenAI "says to Microsoft, 'give us money and compute and stay out of the way: be happy to be on the ride with us'. So naturally this leads to tensions. To be honest, that is a bad partner attitude, it shows arrogance."

The article's conclusion? Negotiating new deal is "critical to OpenAI's restructuring efforts and could dictate the future of a company..."

"When Rust developers think of us C++ folks, they picture a cursed bloodline," writes professional game developer Mamadou Babaei (also a *nix enthusiast who contributes to the FreeBSD Ports collection). "To them, every line of C++ we write is like playing Russian Roulette — except all six chambers are loaded with undefined behavior." But you know what? We don't need a compiler nanny. No borrow checker. No lifetimes. No ownership models. No black magic. Not even Valgrind is required. Just raw pointers, raw determination, and a bit of questionable sanity.
He's created a video on "how to hunt down memory leaks like you were born with a pointer in one hand and a debugger in the other." (It involves using a memory leak tracker — specifically, Visual Studio's _CrtDumpMemoryLeaks, which according to its documentation "dumps all the memory blocks in the debug heap when a memory leak has occurred," identifying the offending lines and pointers.)

"If that sounds unreasonably dangerous — and incredibly fun... let's dive into the deep end of the heap."

"The method is so easy, it renders Rust's memory model (lifetimes, ownership) and the borrow checker useless!" writes Slashdot reader NuLL3rr0r. Does anybody agree with him? Share your own experiences and reactions in the comments.

And how do you feel about Rust's "borrow-checking compiler nanny"?

Fast Company's "AI Decoded" newsletter makes the case that the first "killer app" for generative AI... is coding. Tools like Cursor and Windsurf can now complete software projects with minimal input or oversight from human engineers... Naveen Rao, chief AI officer at Databricks, estimates that coding accounts for half of all large language model usage today. A 2024 GitHub survey found that over 97% of developers have used AI coding tools at work, with 30% to 40% of organizations actively encouraging their adoption.... Microsoft CEO Satya Nadella recently said AI now writes up to 30% of the company's code. Google CEO Sundar Pichai echoed that sentiment, noting more than 30% of new code at Google is AI-generated.

The soaring valuations of AI coding startups underscore the momentum. Anysphere's Cursor just raised $900 million at a $9 billion valuation — up from $2.5 billion earlier this year. Meanwhile, OpenAI acquired Windsurf (formerly Codeium) for $3 billion. And the tools are improving fast. OpenAI's chief product officer, Kevin Weil, explained in a recent interview that just five months ago, the company's best model ranked around one-millionth on a well-known benchmark for competitive coders — not great, but still in the top two or three percentile. Today, OpenAI's top model, o3, ranks as the 175th best competitive coder in the world on that same test. The rapid leap in performance suggests an AI coding assistant could soon claim the number-one spot. "Forever after that point computers will be better than humans at writing code," he said...

Google DeepMind research scientist Nikolay Savinov said in a recent interview that AI coding tools will soon support 10 million-token context windows — and eventually, 100 million. With that kind of memory, an AI tool could absorb vast amounts of human instruction and even analyze an entire company's existing codebase for guidance on how to build and optimize new systems. "I imagine that we will very soon get to superhuman coding AI systems that will be totally unrivaled, the new tool for every coder in the world," Savinov said.

"The Overwatch 2 team at Blizzard has unionized," reports Kotaku: That includes nearly 200 developers across disciplines ranging from art and testing to engineering and design. Basically anyone who doesn't have someone else reporting to them. It's the second wall-to-wall union at the storied game maker since the World of Warcraft team unionized last July... Like unions at Bethesda Game Studios and Raven Software, the Overwatch Gamemakers Guild now has to bargain for its first contract, a process that Microsoft has been accused of slow-walking as negotiations with other internal game unions drag on for years.

"The biggest issue was the layoffs at the beginning of 2024," Simon Hedrick, a test analyst at Blizzard, told Kotaku... "People were gone out of nowhere and there was nothing we could do about it," he said. "What I want to protect most here is the people...." Organizing Blizzard employees stress that improving their working conditions can also lead to better games, while the opposite — layoffs, forced resignations, and uncompetitive pay can make them worse....

"We're not just a number on an Excel sheet," [said UI artist Sadie Boyd]. "We want to make games but we can't do it without a sense of security." Unionizing doesn't make a studio immune to layoffs or being shuttered, but it's the first step toward making companies have a discussion about those things with employees rather than just shadow-dropping them in an email full of platitudes. Boyd sees the Overwatch union as a tool for negotiating a range of issues, like if and how generative AI is used at Blizzard, as well as a possible source of inspiration to teams at other studios.

"Our industry is at such a turning point," she said. "I really think with the announcement of our union on Overwatch...I know that will light some fires."
The article notes that other issues included work-from-home restrictions, pay disparities and changes to Blizzard's profit-sharing program, and wanting codified protections for things like crunch policies, time off, and layoff-related severance.

Inspired by researchers who'd bribed people to use Microsoft's Bing for two weeks (and found some wanted to keep using it), a Washington Post tech columnist also tried it — and reported it "felt like quitting coffee."

"The first few days, I was jittery. I kept double searching on Google and DuckDuckGo, the non-Google web search engine I was using, to check if Google gave me better results. Sometimes it did. Mostly it didn't."

"More than two weeks into a test of whether I love Google search or if it's just a habit, I've stopped double checking. I don't have Google FOMO..." I didn't do a fancy analysis into whether my search results were better with Google or DuckDuckGo, whose technology is partly powered by Bing. The researchers found our assessment of search quality is based on vibes. And the vibes with DuckDuckGo are perfectly fine. Many dozens of readers told me about their own satisfaction with non-Google searches...

For better or worse, DuckDuckGo is becoming a bit more Google-like. Like Google, it has ads that are sometimes misleading or irrelevant. DuckDuckGo and Bing also are mimicking Google's makeover from a place that mostly pointed you to the best links online to one that never wants you to leave Google... [DuckDuckGo] shows you answers to things like sports results and AI-assisted replies, though less often than Google does. (You can turn off AI "instant answers" in DuckDuckGo.) Answers at the top of search results pages can be handy — assuming they're not wrong or scams — but they have potential trade-offs. If you stop your search without clicking to read a website about sports news or gluten intolerance, those sites could die. And the web gets worse. DuckDuckGo says that people expect instant answers from search results, and it's trying to balance those demands with keeping the web healthy. Google says AI answers help people feel more satisfied with their search results and web surfing.

DuckDuckGo has one clear advantage over Google: It collects far less of your data. DuckDuckGo doesn't save what I search...

My biggest wariness from this search experiment is like the challenge of slowing climate change: Your choices matter, but maybe not that much. Our technology has been steered by a handful of giant technology companies, and it's difficult for individuals to alter that. The judge in the company's search monopoly case said Google broke the law by making it harder for you to use anything other than Google. Its search is so dominant that companies stopped trying hard to out-innovate and win you over. (AI could upend Google search. We'll see....) Despite those challenges, using Google a bit less and smaller alternatives more can make a difference. You don't have to 100 percent quit Google.
"Your experiment confirms what we've said all along," Google responded to the Washington Post. "It's easy to find and use the search engine of your choice."

Although the Post's reporter also adds that "I'm definitely not ditching other company internet services like Google Maps, Google Photos and Gmail." They write later that " You'll have to pry YouTube out of my cold, dead hands" and "When I moved years of emails from Gmail to Proton Mail, that switch didn't stick."

Huawei has launched its first laptop running HarmonyOS instead of Windows, complete with AI features and support for over 2,000 mostly China-focused apps. The product is largely a result of U.S. sanctions that prevented U.S.-based companies like Google and Microsoft from doing business with Huawei, forcing the company to develop its own in-house solution. Liliputing reports: Early version of HarmonyOS were basically skinned version of Android, but over time Huawei has moved the two operating systems further apart and it now includes Huawei's own kernel, user interface, and other features. The version designed for laptops features a desktop-style operating system with a taskbar and dock on the bottom of the screen and support for multitasking by running multiple applications in movable, resizable windows.

Since this is 2025, of course Huawei's demos also heavily emphasize AI features: the company showed how Celia, its AI assistant, can summarize documents, help prepare presentation slides, and more. While the operating system won't support the millions of Windows applications that could run on older Huawei laptops, the company says that at launch it will support more than 2,000 applications including WPS Office (an alternative to Microsoft Office that's developed in China), and a range of Chinese social media applications.

An anonymous reader quotes a report from ZDNet: RIP, 486 processor. You've had a long run since Intel released you back in 1989. While Microsoft stopped supporting you with the release of Windows XP in 2001, Linux kept you alive and well for another 20+ years. But all good things must come to an end, and with the forthcoming release of the Linux 6.15 kernel, the 486 and the first Pentium processors will be sunsetted.

Why? Linus Torvalds wrote recently on the Linux Kernel Mailing List (LKML), "I really get the feeling that it's time to leave i486 support behind. There's zero real reason for anybody to waste one second of development effort on this kind of issue." Senior Linux kernel developer Ingo Molnar put Torvalds' remark into context, writing, "In the x86 architecture, we have various complicated hardware emulation facilities on x86-32 to support ancient 32-bit CPUs that very very few people are using with modern kernels. This compatibility glue is sometimes even causing problems that people spend time to resolve, which time could be spent on other things." "This will be the first time Linux has dropped support for a major chip family since 2012, when Linux stopped supporting the 386 family," notes ZDNet's Steven Vaughan-Nichols. "Moving forward, the minimum supported x86 CPU will now be the original Pentium (P5) or newer, requiring the presence of the Time Stamp Counter (TSC) and the CMPXCHG8B (CX8) instruction. These features are absent in the older 486 and early 586 processors, such as the IDT WinChip and AMD Elan families."

That said, you can continue running Linux on Pentium CPUs, but you'll have to "run museum kernels," as Torvalds pointed out in 2022 when he first floated the idea of ending support for 486.

A federal judge has allowed key parts of a class action lawsuit against Delta Air Lines to proceed, stemming from massive flight disruptions caused by CrowdStrike's faulty Windows update in July 2024. The Register reports: Delta blamed its reliance on Microsoft software and the CrowdStrike incident for its woes. However, according to the plaintiffs in the action (PDF), both companies offered the airline assistance, which Delta turned down. Customers of the Atlanta-based carrier affected by the delays and cancellations claim they struggled to secure refunds and compensation from the airline. The plaintiffs allege that "although Delta offered reimbursement of eligible expenses through their website and app, Delta failed to clarify that the customer would only be receiving a partial reimbursement."

"Furthermore, Delta did not disclose to its customers that acceptance of the partial reimbursement would release any legal claims the customer may have against Delta until after the customer 'click[ed] on the button to accept the partial reimbursement.'" The action concerns both US domestic and international travel. The former is covered by US Department of Transportation rules, which require airline agents to "inform customers of their right to a refund ... before making an offer for alternative transportation, travel credits, vouchers, or other compensation in lieu of refunds."

The latter claims come under the Montreal Convention, which is designed to be a single, universal treaty to govern airline liability. Delta, which estimated its operational losses at around half a billion dollars due to the outage, sought to dismiss the complaint. While the US District Judge, Mark H. Cohen, granted the airline's motion to dismiss some of the claims, he permitted others to proceed. These were Count I (breach of contract based on failure to refund) and Count XII (violation of the Montreal Convention).

After gaining attention from Neowin and DistroWatch last week, the sole maintainer behind AnduinOS 1.3 -- a Linux distribution styled to resemble Windows 11 -- decided to reveal himself. He turns out to be Anduin Xue, a Microsoft software engineer, who has been working on the project as a personal, non-commercial endeavor built on Ubuntu. Neowin reports: As a Software Engineer 2 at Microsoft (he doesn't work on Windows), Anduin Xue says he's financially stable and sees no need to commercialize AnduinOS. Explaining the financial aspects of the project, he said: "Many have asked why I don't accept donations, how I profit, and if I plan to commercialize AnduinOS. Truthfully, I haven't thoroughly considered these issues. It's not my main job, and I don't plan to rely on it for a living. Each month, I dedicate only a few hours to maintaining it. Perhaps in the future, I might consider providing enterprise solutions based on AnduinOS, but I won't compromise its original simplicity. It has always been about providing myself with a comfortably themed Ubuntu."

In our coverage of the AnduinOS 1.3 release last week, one commenter pointed out that the distro is from China. For some, this will raise issues, but Anduin Xue addressed this in his blog post, too, saying that the source code is available to the public. For this reason, he told lacing the operating system with backdoors for the Chinese government would be "irrational and easily exposed." For those worried that the distribution may be abandoned, Anduin Xue said that he intends to continue supporting it and may even maintain it full-time if sponsorship or corporate cooperation emerges.

An anonymous reader shares a report: When Microsoft announced new Surface devices earlier this week, we noted that there wasn't a lot of daylight between the starting prices of the new but lower-end devices ($799 for the 12-inch Surface Pro, $899 for the 13-inch Surface Laptop) and the starting prices of the older-but-higher-end Surfaces from last spring ($999 for both). It appears Microsoft has quietly solved this problem by discontinuing the 256GB versions of the 13.8-inch Surface Laptop 7 and the 13-inch Surface Pro 11.

Microsoft's retail pages for both devices list only 512GB and 1TB configurations, with regular prices starting at $1,199. Though not technically a price hike -- the 512GB versions of both devices also cost $1,199 before -- it does amount to an effective price increase for last year's Surface hardware, especially given that both devices have user-replaceable storage that can easily be upgraded for less than the $200 that Microsoft charged for the 256GB-to-512GB upgrade.

The upshot is that the new Surface PCs make more sense now than they did on Tuesday in relative terms, but it's only because you'll pay more to buy a Surface Pro 11 or Surface Laptop 7 than you would before. The 15-inch version of the Surface Laptop 7 still lists a 256GB configuration and a $1,299 starting price, but the 256GB models are currently out of stock.

At its Config 2025 event on Wednesday, Figma unveiled four new AI-powered tools -- Sites, Make, Buzz, and Draw, positioning itself as a full-stack design platform to rival Adobe, WordPress, and Canva. These tools enable users to build websites, generate code, create marketing content, and design vector graphics without leaving the Figma ecosystem. The Verge reports: Figma's first solution is Figma Sites, a website builder that integrates with Figma Design and allows creators to turn their projects into live, functional sites. Figma Sites provides presets for layouts, blocks, templates, and interactions that aim to make building websites less complex and time-consuming. Additional components like custom animations can also be added either using existing code or by prompting Site's AI tool to generate new interaction codes via text descriptions, such as "animate the text to fall into place like a feather." Figma Sites is rolling out in beta for users with full seat access to Figma products. Figma says that AI code generation will be available "in the coming weeks," and that a CMS that allows designers to manage site content will be launched "later this year."

Figma Make is Figma's take on AI coding tools like Google's Gemini Code Assist and Microsoft's GitHub Copilot. The prompt-to-code Figma Make tool is powered by Anthropic's Claude 3.7 model and can build working prototypes and apps based on descriptions or existing designs, such as creating a functional music player that displays a disc that spins when new tracks are played. Specific elements of working design, like text formatting and font style, can be manually edited or adjusted using additional AI prompts. Make is rolling out in beta for full seat Figma users. Figma says it's "exploring integrations with third parties and design systems" for Figma Make and may apply the tool to other apps within its design platform.

Figma Buzz is a marketing-focused design app that's rolling out in beta to all users, and makes it easier for teams to publish brand content, similar to Canva's product design platform. The tool allows Figma designers to create brand-approved templates, styles, and assets that can be used by marketers to quickly assemble emails, social media posts, advertising, and more. Figma Buzz includes generative AI tools for making and editing images using text prompts, and can source information from spreadsheets to bulk create thousands of image assets at once.

Lastly, the Figma Draw vector design app is like a simplified version of Adobe Illustrator that creatives can use to make custom visuals without leaving the Figma platform. It includes a variety of brushes, texture effects, and vector editing tools to create or adjust scalable images and logos for product design projects. Figma Draw is generally available now for full seat users as a toggle in Figma Design, with some features accessible in Sites, Slides, and Buzz. It's not quite as expansive as Adobe's wider Creative Cloud ecosystem, but Figma Draw places the two companies in direct competition for the first time since Adobe killed its own XD product design platform. It also brings some new options to the creative software industry after Adobe failed to acquire Figma for $20 billion due to pressure from competition regulators.

Stratolaunch successfully flew its uncrewed Talon-A2 prototype to hypersonic speeds twice -- once in December and again in March. "We've now demonstrated hypersonic speed, added the complexity of a full runway landing with prompt payload recovery and proven reusability," Stratolaunch President and CEO Zachary Krevor said in a statement on Monday. "Both flights were great achievements for our country, our company and our partners." Space.com reports: Microsoft co-founder Paul Allen established Stratolaunch in 2011, with the goal of air-launching satellites from a giant carrier plane called Roc, which has a wingspan of 385 feet (117 meters). That vision changed after Allen's 2018 death, however; the company is now using Roc as a platform to test hypersonic technology.

Hypersonic vehicles are highly maneuverable craft capable of flying at least five times the speed of sound. Their combination of speed and agility make them much more difficult to track and intercept than traditional ballistic missiles. The United States, China and other countries view hypersonic tech as vital for national security, and are therefore developing and testing such gear at an ever-increasing pace. Stratolaunch, Roc and the winged, rocket-powered Talon-2A are part of this evolving picture, as the two newly announced test flights show. They were both conducted for the U.S. military's Test Resource Management Center Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) program, under a partnership with the Virginia-based company Leidos.

On both occasions, Roc lifted off from California and dropped Talon-2A over the Pacific Ocean. The hypersonic vehicle then powered its way to a landing at Vandenberg Space Force Base, on California's Central Coast. "These flights were a huge success for our program and for the nation," Scott Wilson, MACH-TB program manager, said in the same statement. "The data collected from the experiments flown on the initial Talon-A flight has now been analyzed and the results are extremely positive," he added. "The opportunity for technology testing at a high rate is highly valuable as we push the pace of hypersonic testing. The MACH-TB program is pleased with the multiple flight successes while looking forward to future flight tests with Stratolaunch."

Microsoft has unveiled a substantial AI-focused update for Windows 11 and Copilot+ PCs, introducing features that leverage neural processing units across the operating system. The update centers on AI-powered helpers across core Windows apps, with an intelligent agent in Settings that can locate and adjust options via natural voice commands. Key additions include expanded Click To Do functionality, allowing users to draft Word content based on screen context, engage Reading Coach, or send details directly to Excel tables.

The Photos app gains a relight feature with support for three customizable light sources, while Paint adds object selection and text-to-sticker generation. Snipping Tool will automatically detect and crop prominent screen content, adding text extraction and color picking capabilities. System-level enhancements include an updated Start menu with phone companion integration, AI-powered actions in File Explorer for content summarization, and text generation in Notepad with new formatting options.

Most features will debut first on Windows Insider builds for Snapdragon-powered Copilot+ PCs before expanding to systems with AMD or Intel chips. Several tools, including Ask Copilot and Reading Coach, are already available to Insiders.

BrianFagioli writes: Fedora Linux is now officially available as a Windows Subsystem for Linux (WSL) distribution! That's right, folks, following prior testing, you can now run Fedora 42 natively inside Windows using WSL. As someone who considers Fedora to be my favorite Linux distribution, this is a pretty exciting development.

Installing it is simple enough. Just open up a terminal and type wsl --install FedoraLinux-42 to get started. After that, launch it with wsl -d FedoraLinux-42 and set your username. No password is required by default, and you'll automatically be part of the wheel group, meaning you can use sudo right out of the gate.

Microsoft has instituted a stringent new performance management system that places ousted employees on a two-year rehiring block list and categorizes their departures as "good attrition," Business Insider reported Tuesday, citing internal documents. The company now tracks staff departures it considers beneficial, mirroring Amazon's "unregretted attrition" metric, though no specific targets have been established yet.

Microsoft recently terminated 2,000 underperforming employees without severance and implemented a new performance improvement plan (PIP). Employees facing performance issues now must choose between entering the PIP or accepting a "Global Voluntary Separation Agreement" with 16 weeks of pay.

Further reading: Microsoft Offers Underperformers Cash To Quit.

The Open Document Format reached its 20th anniversary on May 1, marking two decades since OASIS approved the XML-based standard originally developed by Sun Microsystems from StarOffice code. Even as the format has seen adoption by several governments including the UK, India, and Brazil, plus organizations like NATO, Microsoft Office's proprietary formats remain the de facto standard.

Microsoft countered ODF by developing Office Open XML, eventually getting it standardized through Ecma International. "ODF is much more than a technical specification: it is a symbol of freedom of choice, support for interoperability and protection of users from the commercial strategies of Big Tech," said Eliane Domingos, Chair of the Document Foundation, which oversees LibreOffice -- a fork created after Oracle acquired Sun.

Microsoft officially shuttered Skype on May 5, ending the pioneering video chat service's 22-year run. The closure, announced in February, completes Skype's absorption into Microsoft Teams, the company's Slack competitor. Users opening Skype apps will now be redirected to Teams. The only surviving component is the Skype Dial Pad, which remains available within Microsoft Teams Free for subscribers to make calls to traditional phone numbers.

The once-dominant video calling platform was purchased by Microsoft for $8.5 billion in 2011, replacing the company's Windows Live Messenger. Created in 2003 by developers behind Kazaa file-sharing software, Skype became synonymous with video calling during broadband internet's expansion. Skype's decline accelerated after Microsoft's acquisition, with unpopular redesigns and competition from Zoom, which captured market share during the COVID-19 pandemic. Microsoft began phasing out Skype in 2017, starting with Skype for Business, while bundling Teams with Office applications until regulatory intervention forced their separation.

BrianFagioli writes: Microsoft has officially begun rejecting high-volume emails that don't meet its new authentication rules.

Here's the deal. If you send more than 5,000 messages per day to Outlook.com addresses (including hotmail.com and live.com) and you're not properly set up with SPF, DKIM, and DMARC, your emails may never arrive.

The highest-rated video games of 2025 are all budget-priced titles, with Metacritic top performers Clair Obscur: Expedition 33, Blue Prince, and Split Fiction costing just $50, $30, and $50 respectively. This comes as Microsoft announces certain Xbox titles will now cost $80, following Nintendo's similar price hike for Mario Kart on Switch 2.

Clair Obscur, developed by a small French studio, sold 1 million copies in its first week. Split Fiction, despite being published by EA, was created by a small Stockholm team and has reached 2 million sales. Blue Prince, a puzzle-roguelike largely created by a single developer in Los Angeles, is showing strong performance on Steam, Bloomberg reports.

All three games share key traits: they use commercially available engines, take creative risks that big-budget projects couldn't afford, and target specific player demographics rather than trying to appeal broadly. The contrast is striking -- Clair Obscur's developers celebrated reaching 1 million sales while EA declared Dragon Age: The Veilguard a failure with similar numbers, underscoring the economic realities of different development scales.

Yahoo Finance reports that Mark Zuckerberg made bold predictions for investors on Meta's earnings call this week — about advertisers. "AI has already made us better at targeting and finding the audiences that will be interested in their products than many businesses are themselves," Zuck said, "and that keeps improving..."

"If we deliver on this vision, then over the coming years, I think that the increased productivity from AI will make advertising a meaningfully larger share of global GDP than it is today..." If investors are still searching for answers to nagging questions about how massive AI investments will pay off, Zuckerberg provided the clearest reply yet: It will strengthen our core business. In fact, it is our business... On what many believe to be the cusp of an economic downturn, Meta isn't pitching its AI developments as an add-on to its operations, but as something central to its core proposition of targeted advertising...

"While Meta's investments in GenAI have spooked certain investors who continue to question the return on these investments, we saw further signs of GenAI monetization in the firm's ad business," wrote Morningstar equity analyst Malik Ahmed Khan in a note on Thursday. In a powerful showing, coming after Alphabet's own impressive results, Meta noted that a new ads recommendation model it's testing for Reels has already boosted conversion rates by 5%. And nearly one-third of advertisers were using AI creative tools in the past quarter. For Zuckerberg, the enhancements AI offers to finding the right consumers and providing measurable results strengthen the case for boosting capacity and for a revamped model of advertising's scope.

And with the company set to invest upwards of $70 billion toward its AI opportunity this year, the bet is not all about ads, of course. Zuckerberg outlined four other areas of focus for its AI efforts: business messaging, Meta AI, AI devices, and more engaging experiences. Meta's efforts can also be viewed as an ambitious play to take on its rivals across tech's legacy and emerging platforms. As John Blackledge, senior analyst at TD Cowen, said in a note on Thursday, the AI opportunities Zuckerberg outlined are about "ultimately taking on Google search, iPhone and ChatGPT all at once."
In the pre-AI world, "Businesses used to have to generate their own ad creative and define what audiences they wanted to reach," Zuckerberg told Meta's investors this week.

And by Friday's closing, Meta's stock had jumped 12.6% over its value Wednesday morning, leading Yahoo Finance to conclude that Wall Street "appears to be buying into" Zuckerberg's vision.