Hackers intercepted about 103 bank regulators' emails for more than a year, gaining access to highly sensitive financial information, Bloomberg News reported Tuesday, citing two people familiar with the matter and a draft letter to Congress. From the report: The attackers were able to monitor employee emails at the Office of the Comptroller of the Currency after breaking into an administrator's account, said the people, asking not to be identified because the information isn't public. OCC on Feb. 12 confirmed that there had been unauthorized activity on its systems after a Microsoft security team the day before had notified OCC about unusual network behavior, according to the draft letter.

The OCC is an independent bureau of the Treasury Department that regulates and supervises all national banks, federal savings associations and the federal branches and agencies of foreign banks -- together holding trillions of dollars in assets. OCC on Tuesday notified Congress about the compromise, describing it as a "major information security incident."

"The analysis concluded that the highly sensitive bank information contained in the emails and attachments is likely to result in demonstrable harm to public confidence," OCC Chief Information Officer Kristen Baldwin wrote in the draft letter to Congress that was seen by Bloomberg News. While US government agencies and officials have long been the targets of state-sponsored espionage campaigns, multiple high-profile breaches have surfaced over the past year.

Microsoft has scrapped plans to build three data center campuses in Licking County, Ohio, in a $1 billion investment pullback, the company said. The canceled developments in New Albany, Heath, and Hebron join a growing list of Microsoft data center project cancellations across the United States, Europe, Asia-Pacific and the United Kingdom.

Microsoft will retain ownership of the land and plans to eventually develop the sites at an unspecified future date. Two properties will remain available for farming in the interim.

Microsoft's AI chief Mustafa Suleyman says the company has deliberately chosen to build AI models "three or six months behind" cutting-edge developments, citing cost savings and more focused implementation. "It's cheaper to give a specific answer once you've waited for the first three or six months for the frontier to go first. We call that off-frontier," Suleyman told CNBC.

"That's actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models." Microsoft owns substantial Nvidia GPU capacity but sees no need to develop "the absolute frontier, the best model in the world first," as it would be "very, very expensive" and create unnecessary duplication, Suleyman said.

Despite its $13.75 billion investment in OpenAI, Microsoft added the startup to its list of competitors in July 2024. OpenAI subsequently announced a partnership with Oracle on its $500 billion Stargate project, departing from exclusive reliance on Microsoft's Azure cloud. "Look, it's absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft," Suleyman said, while stressing the partnership with OpenAI would continue "until 2030 at least."

"U.S. stock market futures plunged on Sunday evening," reports Yahoo Finance, "after the new U.S. tariff policy began collecting duties over the weekend..."

The EU will vote on $28 billion in retaliatory tariffs Wednesday, Reuters reports. (And those tariffs will be approved unless "a qualified majority of 15 EU members representing 65% of the EU's population oppose it. They would enter force in two stages, a smaller part on April 15 and the rest a month later.")

But France's Economy and Finance Minister has an idea: more strictly regulating how data is used by America's Big Tech companies. Politico EU reports/A>: "We may strengthen certain administrative requirements or regulate the use of data," Lombard said in an interview with Le Journal Du Dimanche. He added that another option could be to "tax certain activities," without being more specific.

A French government spokesperson already said last week that the EU's retaliation against U.S. tariffs could include "digital services that are currently not taxed." That suggestion was fiercely rejected by Ireland, which hosts the European headquarters of several U.S. Big Tech firms...

Technology is seen as a possible area for Europe to retaliate. The European Union has a €157 billion trade surplus in goods, which means it exports more than it imports, but it runs a deficit of €109 billion in services, including digital services. Big Tech giants like Apple, Microsoft, Amazon, Google and Meta dominate many parts of the market in Europe.
Amid the market turmoil, what about cryptocurrencies, often seen as a "proxy" for the level of risk felt by investors? In the 10 weeks after October 6, the price of Bitcoin skyrocketed 67% to $106,490 by December 10th. But by January 30th it had started dropping again, and now sits at $77,831 — still up 22% for the last six months, but down nearly 27% over the last 10 weeks. Yet even after all that volatility, Bitcoin suddenly fell again more than 6% on Sunday, reports Reuters, "as markets plunged amid tariff tensions. Ether, the second largest cryptocurrency, fell more than 10% on Sunday."

"Three Microsoft CEOs walk into a room..." Satya Nadella posted on X.com, "and are interviewed by Copilot!"

As part of Microsoft's 50th anniversary celebration, Microsoft CEO Nadella joined former Microsoft CEOs Bill Gates and Steve Ballmer in a funny two-minute video (also available on YouTube) in which Nadella asks Copilot for an AI-powered roast of each of them.

"All right Satya," Copilot answers. "Let's spice it up..." Copilot: Steve, we'll start with you. Your enthusiasm is legendary. But do you ever worry that your energy might short-circuit the AI? I mean, even robots need a coffee break after your pep talks.

Steve Ballmer: Come on dude! If you can't handle me, you can't handle a huge percentage of the world's population! We're counting on you!

Copilot: Ha ha, fair point Steve. Now Bill, you've got that signature thoughtful gaze. But do you ever think the AI might feel intimidated by your intense thinking face? I mean, it's like it's waiting for a blue screen moment.

Bill Gates: I hope so. I mean, it's all I've got left as the AIs get so damn intelligent. It's just that gaze and my willingness to criticize that differentiates me.

Copilot: And it's a formidable gaze indeed, Bill.

Steve Ballmer: Copilot, would you ever be willing to criticize him?

Copilot: Absolutely. Criticism is where growth happens. Now Satya, AI seems to be your best buddy — but ever worry that your deep passion for AI could one day have it running the show, leaving you to just enjoy the ride?

Satya Nadella: Well, the day AI can play like the best cricket player that I enjoy, that's the day it can run the show, as far as I'm concerned.

Copilot: Touche, Satya. Let's see if it can hit a century in cricket and then we'll talk.

This has been a blast, gentlemen. Here's to another 50 years of innovation and adventure. Cheers.

Ballmer, Nadella, and Gates: Cheers.

Bill Gates: Whatever that means to an AI. Does it drink?

It was long-time Slashdot reader uninet who argued "Apple Needs a Snow Sequoia." (That is, Apple needs an upgrade to MacOS Sequoia that's like it's earlier "Snow Leopard" upgrade to "Leopard" OS — an upgrade that's "all about how little it added and how much it took away".)

"My recent column on Apple's declining software quality hit a nerve..." he writes in a follow-up. "So why do any of us put up with software that grows increasingly buggy?"

"One word: hardware. And that's where I'd love to see someone help Linux take the next step." Apple knows how to turn out very good quality pieces of hardware and, for many purposes, stands alone. That's been largely true for the last couple of decades. The half-decade of Apple Silicon has cemented this position. At any price point Apple contends, Macs, iPads and iPhones are either without peers or at the top of the market in build quality and processing power... [I]f only there were hardware that was as good and worked together as well as Apple's, jumping ship to Linux would be awfully attractive at this juncture...

For Apple aficionados troubled by the state of MacOS, the modern GNOME desktop on Linux beckons as a more faithful implementation of the ideals of MacOS than current MacOS does. GNOME is painstakingly consistent across its different apps and exudes the minimalist philosophy with which Apple's hardware shines... Now is a perfect moment for a modern Linux push to take that wind back. What it needs, though, is to solve its remaining weakness on the hardware side. One of the giants of electronics manufacturing, tired of being stuck between the Microsoft and Apple ecosystems, would only need to decide to commit the resources necessary to solve the hardware puzzle...

ChromeOS has grown to the extent it does because there is hardware designed for it. Take that and carry it further by making it good hardware utilizing the best Linux software and you'd have something disruptive... Initially, the hardware could be "good enough" for the software, much as Apple's software today is merely "good enough" for the hardware. Iterating from there could lead to a genuine third way of computing.
They titled their piece, "I Want a Better Mac, so I'm Cheering for a Better Linux." (Wondering if Dell or Sony could be the one to supply that good hardware...) "I say this not as someone who thinks Linux will ever dominate the personal computing world, but as someone who wants to see a spark of creativity and push beyond mediocrity in it again.

"Apple needs a real competitor, one alternatives such as GNOME on Linux could actually be, if only the hardware rose to the occasion."

Microsoft has created a real-time AI-generated rendition of Quake II gameplay (playable on the web).

Friday Xbox's general manager of gaming AI posted the startling link to "an AI-generated gaming experience" at Copilot.Microsoft.com "Move, shoot, explore — and every frame is created on the fly by an AI world model, responding to player inputs in real-time. Try it here."

They started with their "Muse" videogame world models, adding "a real-time playable extension" that players can interact with through keyboard/controller actions, "essentially allowing you to play inside the model," according to a Microsoft blog post. A concerted effort by the team resulted in both planning out what data to collect (what game, how should the testers play said game, what kind of behaviours might we need to train a world model, etc), and the actual collection, preparation, and cleaning of the data required for model training. Much to our initial delight we were able to play inside the world that the model was simulating. We could wander around, move the camera, jump, crouch, shoot, and even blow-up barrels similar to the original game. Additionally, since it features in our data, we can also discover some of the secrets hidden in this level of Quake II. We can also insert images into the models' context and have those modifications persist in the scene...

We do not intend for this to fully replicate the actual experience of playing the original Quake II game. This is intended to be a research exploration of what we are able to build using current ML approaches. Think of this as playing the model as opposed to playing the game... The interactions with enemy characters is a big area for improvement in our current WHAMM model. Often, they will appear fuzzy in the images and combat with them (damage being dealt to both the enemy/player) can be incorrect.
They warn that the model "can and will forget about objects that go out of view" for longer than 0.9 seconds. "This can also be a source of fun, whereby you can defeat or spawn enemies by looking at the floor for a second and then looking back up. Or it can let you teleport around the map by looking up at the sky and then back down. These are some examples of playing the model."

This generative AI model was trained on Quake II "with just over a week of data," reports Tom's Hardware — a dramatic reduction from the seven years required for the original model launched in February.

Some context from The Verge: "You could imagine a world where from gameplay data and video that a model could learn old games and really make them portable to any platform where these models could run," said Microsoft Gaming CEO Phil Spencer in February. "We've talked about game preservation as an activity for us, and these models and their ability to learn completely how a game plays without the necessity of the original engine running on the original hardware opens up a ton of opportunity."
"Is porting a game like Gameday 98 more feasible through AI or a small team?" asks the blog Windows Central. "What costs less or even takes less time? These are questions we'll be asking and answering over the coming decade as AI continues to grow. We're in year two of the AI boom; I'm terrified of what we'll see in year 10."

"It's clear that Microsoft is now training Muse on more games than just Bleeding Edge," notes The Verge, "and it's likely we'll see more short interactive AI game experiences in Copilot Labs soon." Microsoft is also working on turning Copilot into a coach for games, allowing the AI assistant to see what you're playing and help with tips and guides. Part of that experience will be available to Windows Insiders through Copilot Vision soon.

Slashdot reader zlives shared this report from BleepingComputer: Microsoft used its AI-powered Security Copilot to discover 20 previously unknown vulnerabilities in the GRUB2, U-Boot, and Barebox open-source bootloaders.

GRUB2 (GRand Unified Bootloader) is the default boot loader for most Linux distributions, including Ubuntu, while U-Boot and Barebox are commonly used in embedded and IoT devices. Microsoft discovered eleven vulnerabilities in GRUB2, including integer and buffer overflows in filesystem parsers, command flaws, and a side-channel in cryptographic comparison. Additionally, 9 buffer overflows in parsing SquashFS, EXT4, CramFS, JFFS2, and symlinks were discovered in U-Boot and Barebox, which require physical access to exploit.

The newly discovered flaws impact devices relying on UEFI Secure Boot, and if the right conditions are met, attackers can bypass security protections to execute arbitrary code on the device. While exploiting these flaws would likely need local access to devices, previous bootkit attacks like BlackLotus achieved this through malware infections.
Miccrosoft titled its blog post "Analyzing open-source bootloaders: Finding vulnerabilities faster with AI." (And they do note that Micxrosoft disclosed the discovered vulnerabilities to the GRUB2, U-boot, and Barebox maintainers and "worked with the GRUB2 maintainers to contribute fixes... GRUB2 maintainers released security updates on February 18, 2025, and both the U-boot and Barebox maintainers released updates on February 19, 2025.")

They add that performing their initial research, using Security Copilot "saved our team approximately a week's worth of time," Microsoft writes, "that would have otherwise been spent manually reviewing the content." Through a series of prompts, we identified and refined security issues, ultimately uncovering an exploitable integer overflow vulnerability. Copilot also assisted in finding similar patterns in other files, ensuring comprehensive coverage and validation of our findings...

As AI continues to emerge as a key tool in the cybersecurity community, Microsoft emphasizes the importance of vendors and researchers maintaining their focus on information sharing. This approach ensures that AI's advantages in rapid vulnerability discovery, remediation, and accelerated security operations can effectively counter malicious actors' attempts to use AI to scale common attack tactics, techniques, and procedures (TTPs).
This week Google also announced Sec-Gemini v1, "a new experimental AI model focused on advancing cybersecurity AI frontiers."

Is OpenAI's ChatGPT violating copyrights? The New York Times sued OpenAI in December 2023. But Ars Technica summarizes OpenAI's response. The New York Times (or NYT) "should have known that ChatGPT was being trained on its articles... partly because of the newspaper's own reporting..."

OpenAI pointed to a single November 2020 article, where the NYT reported that OpenAI was analyzing a trillion words on the Internet.

But on Friday, U.S. district judge Sidney Stein disagreed, denying OpenAI's motion to dismiss the NYT's copyright claims partly based on one NYT journalist's reporting. In his opinion, Stein confirmed that it's OpenAI's burden to prove that the NYT knew that ChatGPT would potentially violate its copyrights two years prior to its release in November 2022... And OpenAI's other argument — that it was "common knowledge" that ChatGPT was trained on NYT articles in 2020 based on other reporting — also failed for similar reasons...

OpenAI may still be able to prove through discovery that the NYT knew that ChatGPT would have infringing outputs in 2020, Stein said. But at this early stage, dismissal is not appropriate, the judge concluded. The same logic follows in a related case from The Daily News, Stein ruled. Davida Brook, co-lead counsel for the NYT, suggested in a statement to Ars that the NYT counts Friday's ruling as a win. "We appreciate Judge Stein's careful consideration of these issues," Brook said. "As the opinion indicates, all of our copyright claims will continue against Microsoft and OpenAI for their widespread theft of millions of The Times's works, and we look forward to continuing to pursue them."

The New York Times is also arguing that OpenAI contributes to ChatGPT users' infringement of its articles, and OpenAI lost its bid to dismiss that claim, too. The NYT argued that by training AI models on NYT works and training ChatGPT to deliver certain outputs, without the NYT's consent, OpenAI should be liable for users who manipulate ChatGPT to regurgitate content in order to skirt the NYT's paywalls... At this stage, Stein said that the NYT has "plausibly" alleged contributory infringement, showing through more than 100 pages of examples of ChatGPT outputs and media reports showing that ChatGPT could regurgitate portions of paywalled news articles that OpenAI "possessed constructive, if not actual, knowledge of end-user infringement." Perhaps more troubling to OpenAI, the judge noted that "The Times even informed defendants 'that their tools infringed its copyrighted works,' supporting the inference that defendants possessed actual knowledge of infringement by end users."

An anonymous reader shares a report: A Microsoft employee disrupted the company's 50th anniversary event to protest its use of AI. "Shame on you," said Microsoft employee Ibtihal Aboussad, speaking directly to Microsoft AI CEO Mustafa Suleyman. "You are a war profiteer. Stop using AI for genocide. Stop using AI for genocide in our region. You have blood on your hands. All of Microsoft has blood on its hands. How dare you all celebrate when Microsoft is killing children. Shame on you all."

An anonymous reader shares a report: The gap between Windows 10 and Windows 11 continues to narrow, and Microsoft's flagship operating system is on track to finally surpass its predecessor by summer. The latest figures from Statcounter show the increase in Windows 11's market share accelerating, while Windows 10 declines.

Before Champagne corks start popping in Redmond, it is worth noting that Windows 10 still accounts for over half the market -- 54.2 percent -- and Windows 11 now accounts for 42.69 percent. However, if the current trends continue, Windows 10 should finally drop below the 50 percent mark next month and be surpassed by Windows 11 shortly after.

The cause is likely due to enterprises pushing the upgrade button rather than having to deal with extended support for Windows 10. Support for most Windows 10 versions ends on October 14, 2025, and Microsoft has shown no signs of deviating from its plan to retire the veteran operating system. [...] Whether users actually want the operating system is another matter. Windows 11 offers few compelling features that justify an upgrade and no killer application. The looming October 14 support cut-off date is likely to be the major driving factor behind the move to Windows 11.

Microsoft is testing a new Windows 11 feature that resizes taskbar icons dynamically like on macOS, with options to shrink icons when the taskbar is full or keep them small at all times. The Verge reports: If you're on the beta, under Taskbar settings - Taskbar behaviors, you can now select options under Show smaller taskbar buttons: Always, Never, or When taskbar is full. The third option will scale down icons so that they all can fit and not get hidden away in a second menu. The behavior appears to be similar to macOS where icons on the dock get smaller as more applications or minimized windows are added. Microsoft is also testing an update to the Start menu. "Now, it has a larger layout that includes the ability to hide the recommended recent apps and can show all of your apps on the page," reports The Verge.

An anonymous reader shares a report: Microsoft's business-oriented "Link" mini-desktop PC, which connects directly to the company's Windows 365 cloud service, is now available to buy for $349.99 in the US and in several other countries. Windows 365 Link, which was announced last November, is a device that is more easily manageable by IT departments than a typical computer while also reducing the needs of hands on support.

Climate startup Aspiration, which boasted a roster of celebrity backers and arranged carbon credits for Meta Platforms, Microsoft and other large companies, filed bankruptcy weeks after its co-founder was arrested on fraud charges. From a report: CTN Holdings, as the company is now known, has about $170 million in debt. The goal of the bankruptcy is to sell its assets as quickly as possible in order to repay creditors, chief restructuring officer Miles Staglik said in a court filing. The pool of potential bidders is small and the nature of the CTN's ventures will likely require more cash and "long term horizons before any potential value could be realized for creditors," Staglik said.

The bankruptcy was filed after co-founder Joseph Sanberg was charged by federal prosecutors with conspiring to defraud two investor funds of at least $145 million, according to a US Department of Justice announcement earlier this month. The charges involve his personal conduct and don't implicate CTN or its affiliates "in any criminal activity," said Staglik, a managing director at CR3 Partners that's been hired as CTN's restructuring adviser.

Despite promises of more efficient streaming, the AV1 video codec hasn't achieved widespread adoption seven years after its 2018 debut, even with backing from tech giants Netflix, Microsoft, Google, Amazon, and Meta. The Alliance for Open Media (AOMedia) claims AV1 is 30% more efficient than standards like HEVC, delivering higher-quality video at lower bandwidth while remaining royalty-free.

Major services including YouTube, Netflix, and Amazon Prime Video have embraced the technology, with Netflix encoding approximately 95% of its content using AV1. However, adoption faces significant hurdles. Many streaming platforms including Max, Peacock, and Paramount Plus haven't implemented AV1, partly due to hardware limitations. Devices require specific decoders to properly support AV1, though recent products from Apple, Nvidia, AMD, and Intel have begun including them. "In order to get its best features, you have to accept a much higher encoding complexity," Larry Pearlstein, associate professor at the College of New Jersey, told The Verge. "But there is also higher decoding complexity, and that is on the consumer end."

Microsoft has pulled back on data center projects around the world, suggesting the company is taking a harder look at its plans to build the server farms powering artificial intelligence and the cloud. From a report: The software company has recently halted talks for, or delayed development of, sites in Indonesia, the UK, Australia, Illinois, North Dakota and Wisconsin, according to people familiar with the situation. Microsoft is widely seen as a leader in commercializing AI services, largely thanks to its close partnership with OpenAI. Investors closely track Microsoft's spending plans to get a sense of long-term customer demand for cloud and AI services.

It's hard to know how much of the company's data center pullback reflects expectations of diminished demand versus temporary construction challenges, such as shortages of power and building materials. Some investors have interpreted signs of retrenchment as an indication that projected purchases of AI services don't justify Microsoft's massive outlays on server farms. Those concerns have weighed on global tech stocks in recent weeks, particularly chipmakers like Nvidia which suck up a significant share of data center budgets.

Longtime Slashdot reader theodp writes: A coalition of Washington state business leaders -- which includes Microsoft President Brad Smith and Amazon Chief Legal Officer David Zapolsky -- released a letter Wednesday urging state lawmakers to reconsider recently proposed tax and budget measures. "I actually think it's an almost unprecedented outpouring of support from across the business community," said Microsoft's Smith in an interview. In their letter, which reads in part like it could have been penned by a GenAI Marie Antoinette, the WA business leaders question whether any more spending is warranted given how poorly Washington's 4th and 8th graders compare to children in the rest of the nation on test scores. The letter also laments the increase in WA's homeless population as it celebrates WA Governor Bob Ferguson's announcement that he would not sign a proposed wealth tax.

From the letter: "We have long partnered with you in many areas, including education funding. Despite more than doubling K-12 spending and increasing teacher salaries to some of the highest rates in the nation, 4th and 8th grade assessment scores in reading and math are among the worst in the country. Similarly, we have collaborated with you to address housing and homelessness. Despite historic investments in affordable housing and homelessness prevention since 2013, Washington's homeless population has grown by 71 percent, making it the third largest in the nation after California and New York, according to HUD. These outcomes beg the question of whether more investment is needed or whether we need different policies instead."

Back in 2010, Smith teamed with then-Microsoft CEO Steve Ballmer and then-Amazon CEO Jeff Bezos to fund an effort to defeat an initiative for a WA state income that was pushed for by Bill Gates Sr. In 2023, Bezos moved out of WA state before being subjected to a 7% tax on gains of more than $250,000 from the sale of stocks and bonds, a move that reportedly saved him $1.2 billion in WA taxes on his 2024 Amazon stock sales.

To mark Microsoft's 50th anniversary, Bill Gates has released the original Altair BASIC source code he co-wrote with Paul Allen, calling it the "coolest code" he's ever written and a symbol of the company's humble beginnings. Thurrott reports: "Before there was Office or Windows 95 or Xbox or AI, there was Altair BASIC," Bill Gates writes on his Gates Notes website. "In 1975, Paul Allen and I created Microsoft because we believed in our vision of a computer on every desk and in every home. Five decades later, Microsoft continues to innovate new ways to make life easier and work more productive. Making it 50 years is a huge accomplishment, and we couldn't have done it without incredible leaders like Steve Ballmer and Satya Nadella, along with the many people who have worked at Microsoft over the years."

Today, Gates says that the 50th anniversary of Microsoft is "bittersweet," and that it feels like yesterday when he and Allen "hunched over the PDP-10 in Harvard's computer lab, writing the code that would become the first product of our new company." That code, he says, remains "the coolest code I've ever written to this day ... I still get a kick out of seeing it, even all these years later."

Microsoft is pushing businesses to shift away from perpetual Office licenses to Microsoft 365 subscriptions, citing collaboration limitations and rising IT costs associated with standalone software. "You may have started noticing limitations," Microsoft says in a post. "Your apps are stuck on your desktop, limiting productivity anytime you're away from your office. You can't easily access your files or collaborate when working remotely."

In its pitch, the Windows-maker says Microsoft 365 includes Office applications as well as security features, AI tools, and cloud storage. The post cites a Microsoft-commissioned Forrester study that claims the subscription model delivers "223% ROI over three years, with a payback period of less than six months" and "over $500,000 in benefits over three years."

Microsoft Chief Technology Officer Kevin Scott has predicted that AI will generate 95% of code within five years. Speaking on the 20VC podcast, Scott said AI would not replace software engineers but transform their role. "It doesn't mean that the AI is doing the software engineering job.... authorship is still going to be human," Scott said.

According to Scott, developers will shift from writing code directly to guiding AI through prompts and instructions. "We go from being an input master (programming languages) to a prompt master (AI orchestrator)," he said. Scott said the current AI systems have significant memory limitations, making them "awfully transactional," but predicted improvements within the next year.