microsoft

microsoft-tries-to-head-off-the-“novel-security-risks”-of-windows-11-ai-agents

Microsoft tries to head off the “novel security risks” of Windows 11 AI agents

Microsoft has been adding AI features to Windows 11 for years, but things have recently entered a new phase, with both generative and so-called “agentic” AI features working their way deeper into the bedrock of the operating system. A new build of Windows 11 released to Windows Insider Program testers yesterday includes a new “experimental agentic features” toggle in the Settings to support a feature called Copilot Actions, and Microsoft has published a detailed support article detailing more about just how those “experimental agentic features” will work.

If you’re not familiar, “agentic” is a buzzword that Microsoft has used repeatedly to describe its future ambitions for Windows 11—in plainer language, these agents are meant to accomplish assigned tasks in the background, allowing the user’s attention to be turned elsewhere. Microsoft says it wants agents to be capable of “everyday tasks like organizing files, scheduling meetings, or sending emails,” and that Copilot Actions should give you “an active digital collaborator that can carry out complex tasks for you to enhance efficiency and productivity.”

But like other kinds of AI, these agents can be prone to error and confabulations and will often proceed as if they know what they’re doing even when they don’t. They also present, in Microsoft’s own words, “novel security risks,” mostly related to what can happen if an attacker is able to give instructions to one of these agents. As a result, Microsoft’s implementation walks a tightrope between giving these agents access to your files and cordoning them off from the rest of the system.

Possible risks and attempted fixes

For now, these “experimental agentic features” are optional, only available in early test builds of Windows 11, and off by default. Credit: Microsoft

For example, AI agents running on a PC will be given their own user accounts separate from your personal account, ensuring that they don’t have permission to change everything on the system and giving them their own “desktop” to work with that won’t interfere with what you’re working with on your screen. Users need to approve requests for their data, and “all actions of an agent are observable and distinguishable from those taken by a user.” Microsoft also says agents need to be able to produce logs of their activities and “should provide a means to supervise their activities,” including showing users a list of actions they’ll take to accomplish a multi-step task.

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OpenAI signs massive AI compute deal with Amazon

On Monday, OpenAI announced it has signed a seven-year, $38 billion deal to buy cloud services from Amazon Web Services to power products like ChatGPT and Sora. It’s the company’s first big computing deal after a fundamental restructuring last week that gave OpenAI more operational and financial freedom from Microsoft.

The agreement gives OpenAI access to hundreds of thousands of Nvidia graphics processors to train and run its AI models. “Scaling frontier AI requires massive, reliable compute,” OpenAI CEO Sam Altman said in a statement. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

OpenAI will reportedly use Amazon Web Services immediately, with all planned capacity set to come online by the end of 2026 and room to expand further in 2027 and beyond. Amazon plans to roll out hundreds of thousands of chips, including Nvidia’s GB200 and GB300 AI accelerators, in data clusters built to power ChatGPT’s responses, generate AI videos, and train OpenAI’s next wave of models.

Wall Street apparently liked the deal, because Amazon shares hit an all-time high on Monday morning. Meanwhile, shares for long-time OpenAI investor and partner Microsoft briefly dipped following the announcement.

Massive AI compute requirements

It’s no secret that running generative AI models for hundreds of millions of people currently requires a lot of computing power. Amid chip shortages over the past few years, finding sources of that computing muscle has been tricky. OpenAI is reportedly working on its own GPU hardware to help alleviate the strain.

But for now, the company needs to find new sources of Nvidia chips, which accelerate AI computations. Altman has previously said that the company plans to spend $1.4 trillion to develop 30 gigawatts of computing resources, an amount that is enough to roughly power 25 million US homes, according to Reuters.

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Nvidia hits record $5 trillion mark as CEO dismisses AI bubble concerns

Partnerships and government contracts fuel optimism

At the GTC conference on Tuesday, Nvidia’s CEO went out of his way to repeatedly praise Donald Trump and his policies for accelerating domestic tech investment while warning that excluding China from Nvidia’s ecosystem could limit US access to half the world’s AI developers. The overall event stressed Nvidia’s role as an American company, with Huang even nodding to Trump’s signature slogan in his sign-off by thanking the audience for “making America great again.”

Trump’s cooperation is paramount for Nvidia because US export controls have effectively blocked Nvidia’s AI chips from China, costing the company billions of dollars in revenue. Bob O’Donnell of TECHnalysis Research told Reuters that “Nvidia clearly brought their story to DC to both educate and gain favor with the US government. They managed to hit most of the hottest and most influential topics in tech.”

Beyond the political messaging, Huang announced a series of partnerships and deals that apparently helped ease investor concerns about Nvidia’s future. The company announced collaborations with Uber Technologies, Palantir Technologies, and CrowdStrike Holdings, among others. Nvidia also revealed a $1 billion investment in Nokia to support the telecommunications company’s shift toward AI and 6G networking.

The agreement with Uber will power a fleet of 100,000 self-driving vehicles with Nvidia technology, with automaker Stellantis among the first to deliver the robotaxis. Palantir will pair Nvidia’s technology with its Ontology platform to use AI techniques for logistics insights, with Lowe’s as an early adopter. Eli Lilly plans to build what Nvidia described as the most powerful supercomputer owned and operated by a pharmaceutical company, relying on more than 1,000 Blackwell AI accelerator chips.

The $5 trillion valuation surpasses the total cryptocurrency market value and equals roughly half the size of the pan European Stoxx 600 equities index, Reuters notes. At current prices, Huang’s stake in Nvidia would be worth about $179.2 billion, making him the world’s eighth-richest person.

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Expert panel will determine AGI arrival in new Microsoft-OpenAI agreement

In May, OpenAI abandoned its plan to fully convert to a for-profit company after pressure from regulators and critics. The company instead shifted to a modified approach where the nonprofit board would retain control while converting its for-profit subsidiary into a public benefit corporation (PBC).

What changed in the agreement

The revised deal extends Microsoft’s intellectual property rights through 2032 and now includes models developed after AGI is declared. Microsoft holds IP rights to OpenAI’s model weights, architecture, inference code, and fine-tuning code until the expert panel confirms AGI or through 2030, whichever comes first. The new agreement also codifies that OpenAI can formally release open-weight models (like gpt-oss) that meet requisite capability criteria.

However, Microsoft’s rights to OpenAI’s research methods, defined as confidential techniques used in model development, will expire at those same thresholds. The agreement explicitly excludes Microsoft from having rights to OpenAI’s consumer hardware products.

The deal allows OpenAI to develop some products jointly with third parties. API products built with other companies must run exclusively on Azure, but non-API products can operate on any cloud provider. This gives OpenAI more flexibility to partner with other technology companies while keeping Microsoft as its primary infrastructure provider.

Under the agreement, Microsoft can now pursue AGI development alone or with partners other than OpenAI. If Microsoft uses OpenAI’s intellectual property to build AGI before the expert panel makes a declaration, those models must exceed compute thresholds that are larger than what current leading AI models require for training.

The revenue-sharing arrangement between the companies will continue until the expert panel verifies that AGI has been reached, though payments will extend over a longer period. OpenAI has committed to purchasing $250 billion in Azure services, and Microsoft no longer holds a right of first refusal to serve as OpenAI’s compute provider. This lets OpenAI shop around for cloud infrastructure if it chooses, though the massive Azure commitment suggests it will remain the primary provider.

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microsoft’s-mico-heightens-the-risks-of-parasocial-llm-relationships

Microsoft’s Mico heightens the risks of parasocial LLM relationships

While mass media like radio, movies, and television can all feed into parasocial relationships, the Internet and smartphone revolutions have supercharged the opportunities we all have to feel like an online stranger is a close, personal confidante. From YouTube and podcast personalities to Instagram influencers or even your favorite blogger/journalist (hi), it’s easy to feel like you have a close connection with the people who create the content you see online every day.

After spending hours watching this TikTok personality, I trust her implicitly to sell me a purse.

Credit: Getty Images

After spending hours watching this TikTok personality, I trust her implicitly to sell me a purse. Credit: Getty Images

Viewing all this content on a smartphone can flatten all these media and real-life personalities into a kind of undifferentiated media sludge. It can be all too easy to slot an audio message from your romantic partner into the same mental box as a stranger chatting about video games in a podcast. “When my phone does little mating calls of pings and buzzes, it could bring me updates from people I love, or show me alerts I never asked for from corporations hungry for my attention,” Julie Beck writes in an excellent Atlantic article about this phenomenon. “Picking my loved ones out of the never-ending stream of stuff on my phone requires extra effort.”

This is the world Mico seems to be trying to slide into, turning Copilot into another not-quite-real relationship mediated through your mobile device. But unlike the Instagram model who never seems to acknowledge your comments, Mico is always there to respond with a friendly smile and a warm, soothing voice.

AI that “earns your trust”

Text-based AI interfaces are already frighteningly good at faking human personality in a way that encourages this kind of parasocial relationship, sometimes with disastrous results. But adding a friendly, Pixar-like face to Copilot’s voice mode may make it much easier to be sucked into feeling like Copilot isn’t just a neural network but a real, caring personality—one you might even start thinking of the same way you’d think of the real loved ones in your life.

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ai-powered-features-begin-creeping-deeper-into-the-bedrock-of-windows-11

AI-powered features begin creeping deeper into the bedrock of Windows 11


everything old is new again

Copilot expands with an emphasis on creating and editing files, voice input.

Microsoft is hoping that Copilot will succeed as a voice-driven assistant where Cortana failed. Credit: Microsoft

Microsoft is hoping that Copilot will succeed as a voice-driven assistant where Cortana failed. Credit: Microsoft

Like virtually every major Windows announcement in the last three years, the spate of features that Microsoft announced for the operating system today all revolve around generative AI. In particular, they’re concerned with the company’s more recent preoccupation with “agentic” AI, an industry buzzword for “telling AI-powered software to perform a task, which it then does in the background while you move on to other things.”

But the overarching impression I got, both from reading the announcement and sitting through a press briefing earlier this month, is that Microsoft is using language models and other generative AI technologies to try again with Cortana, Microsoft’s failed and discontinued entry in the voice assistant wars of the 2010s.

According to Microsoft’s Consumer Chief Marketing Officer Yusuf Mehdi, “AI PCs” should be able to recognize input “naturally, in text or voice,” to be able to guide users based on what’s on their screens at any given moment, and that AI assistants “should be able to take action on your behalf.”

The biggest of today’s announcements is the introduction of a new “Hey, Copilot” activation phrase for Windows 11 PCs, which once enabled users to summon the chatbot using only their voice rather than a mouse or keyboard (if you do want to use the keyboard, either the Copilot key or the same Windows + C keyboard shortcut that used to bring up Cortana will also summon Copilot). Saying “goodbye” will dismiss Copilot when you’re done working with it.

Macs and most smartphones have sported similar functionality for a while now, but Microsoft is obviously hoping that having Copilot answer those questions instead of Cortana will lead to success rather than another failure.

The key limitation of the original Cortana—plus Siri, Alexa, and the rest of their ilk—is that it could only really do a relatively limited and pre-determined list of actions. Complex queries, or anything the assistants don’t understand, often get bounced to a general web search. The results of that search may or may not accomplish what you wanted, but it does ultimately shift the onus back on the user to find and follow those directions.

To make Copilot more useful, Microsoft has also announced that Copilot Vision is being rolled out worldwide “in all markets where Copilot is offered” (it has been available in the US since mid-June). Copilot Vision will read the contents of a screen or an app window and can attempt to offer useful guidance or feedback, like walking you through an obscure task in Excel or making suggestions based on a group of photos or a list of items. (Microsoft additionally announced a beta for Gaming Copilot, a sort of offshoot of Copilot Vision intended specifically for walkthroughs and advice for whatever game you happen to be playing.)

Beyond these tweaks or wider rollouts for existing features, Microsoft is also testing a few new AI and Copilot-related additions that aim to fundamentally change how users interact with their Windows PCs by reading and editing files.

All of the features Microsoft is announcing today are intended for all Windows 11 PCs, not just those that meet the stricter hardware requirements of the Copilot+ PC label. That gives them a much wider potential reach than things like Recall or Click to Do, and it makes knowing what these features do and how they safeguard security and privacy that much more important.

AI features work their way into the heart of Windows

Microsoft wants general-purpose AI agents to be able to create and modify files for you, among other things, working in the background while you move on to other tasks. Credit: Microsoft

Whether you’re talking about the Copilot app, the generative AI features added to apps like Notepad and Paint, or the data-scraping Windows Recall feature, most of the AI additions to Windows in the last few years have been app-specific, or cordoned off in some way from core Windows features like the taskbar and File Explorer.

But AI features are increasingly working their way into bedrock Windows features like the taskbar and Start menu and being given capabilities that allow them to analyze or edit files or even perform file management tasks.

The standard Search field that has been part of Windows 10 and Windows 11 for the last decade, for example, is being transformed into an “Ask Copilot” field; this feature will still be able to look through local files just like the current version of the Search box, but Microsoft also envisions it as a keyboard-driven interface for Copilot for the times when you can’t or don’t want to use your voice. (We don’t know whether the “old” search functionality lives on in the Start menu or as an optional fallback for people who disable Copilot, at least not yet.)

A feature called Copilot Actions will also expand the number of ways that Copilot can interact with local files on your PC. Microsoft cites “sorting through recent vacation photos” and extracting information from PDFs and other documents as two possible use cases, and that this early preview version will focus on “a narrow set of use cases.” But it’s meant to be “a general-purpose agent” capable of “interacting with desktop and web applications.” This gives it a lot of latitude to augment or replace basic keyboard-and-mouse input for some interactions.

Screenshots of a Windows 11 testing build showed Copilot taking over the area of the taskbar that is currently reserved for the Search field. Credit: Microsoft

Finally, Microsoft is taking another stab at allowing Copilot to change the settings on your PC, something that earlier versions were able to do but were removed in a subsequent iteration. Copilot will attempt to respond to plain-language questions about your PC settings with a link to the appropriate part of Windows’ large, labyrinthine Settings app.

These new features dovetail with others Microsoft has been testing for a few weeks or months now. Copilot Connectors, rolled out to Windows Insiders earlier this month, can give Copilot access to email and file-sharing services like Gmail and Dropbox. New document creation features allow Copilot to export the contents of a Copilot chat into a Word or PDF document, Excel spreadsheet, or PowerPoint deck for more refinement and editing. And AI actions in the File Explorer appear in Windows’ right-click menu and allow for the direct manipulation of files, including batch-editing images and summarizing documents. Together with the Copilot Vision features that enable Copilot to see the full contents of Office documents rather than just the on-screen portions, all of these features inject AI into more basic everyday tasks, rather than cordoning them off in individual apps.

Per usual, we don’t know exactly when any of these new features will roll out to the general public, and some may never be available outside of the Windows Insider program. None of them are currently baked into the Windows 11 25H2 update, at least not the version that the company is currently beginning to roll out to some PCs.

Learning the lessons of Recall

Microsoft at least seems to have learned lessons from the botched rollout of Windows Recall last year.

If you didn’t follow along: Microsoft’s initial plan had been to roll out Recall with the first wave of Copilot+ PCs, but without sending it through the Windows Insider Preview program first. This program normally gives power users, developers, security researchers, and others the opportunity to kick the tires on upcoming Windows features before they’re launched, giving Microsoft feedback on bugs, security holes, or other flaws before rolling them out to all Windows PCs.

But security researchers who did manage to get their hands on the early, nearly launched version of Recall discovered a deeply flawed feature that preserved too much personal information and was trivially easy to exploit—a plain-text file with OCR text from all of a user’s PC usage could be grabbed by pretty much anybody with access to the PC, either in person or remote. It was also enabled by default on PCs that supported it, forcing users to manually opt out if they didn’t want to use it.

In the end, Microsoft pulled that version of Recall, took nearly a year to overhaul its security architecture, and spent months letting the feature make its way through the Windows Insider Preview channels before finally rolling it out to Copilot+ PCs. The resulting product still presents some risks to user privacy, as does any feature that promises to screenshot and store months of history about how you use your PC, but it’s substantially more refined, the most egregious security holes have been closed, and it’s off by default.

Copilot Actions are, at least for now, also disabled by default. And Microsoft Corporate Vice President of Windows Security Dana Huang put up a lengthy accompanying post explaining several of the steps Microsoft has taken to protect user privacy and security when using Copilot Actions. These include running AI agents with their own dedicated user accounts to reduce their access to data in your user folder; mandatory code-signing; and giving agents the fewest privileges they need to do their jobs. All of the agents’ activities will also be documented, so users can verify what actions have been taken and correct any errors.

Whether these security and privacy promises are good enough is an open question, but unlike the initial version of Recall, all of these new features will be sent out through the Windows Insider channels for testing first. If there are serious flaws, they’ll be out in public early on, rather than dropped on users unawares.

Photo of Andrew Cunningham

Andrew is a Senior Technology Reporter at Ars Technica, with a focus on consumer tech including computer hardware and in-depth reviews of operating systems like Windows and macOS. Andrew lives in Philadelphia and co-hosts a weekly book podcast called Overdue.

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ROG Xbox Ally X: The Ars Technica review


You got Xbox in my portable gaming PC

The first portable “Xbox” fails to unify a messy world of competing PC gaming platforms.

The ROG Ally X sure looks great floating in a void… Credit: Asus

Here at Ars, we have been writing about rumors of a portable Xbox for literal decades now. With the ROG Xbox Ally, Microsoft has finally made those rumors a reality in the weirdest, most Microsoft way possible.

Yes, the $600 ROG Xbox Ally—and its souped-up cousin, the $1,000, ridiculous-mouthful-of-a-name ROG Xbox Ally X, which we tested—are the first official handheld hardware to sport the Xbox brand name. But Microsoft isn’t taking the exclusive-heavy, walled garden software approach that it has been committed to for nearly 25 years of Xbox home consoles. Instead, the ROG Xbox Ally is, at its base, simply a new version of Asus’ Windows-based ROG Ally line with an Xbox-flavored coat of paint.

That coat of paint—what Microsoft is calling the Xbox Full-screen Experience (FSE)—represents the company’s belated attempt to streamline the Windows gaming experience to be a bit more console-like in terms of user interface and overall simplicity. While that’s a worthy vision, the execution in these early days is so spotty and riddled with annoyances that it’s hard to recommend over the SteamOS-based competition.

Promises, promises

When Microsoft announced the ROG Xbox Ally this summer, the company promised that what it was calling a new “Xbox Experience for Handheld” would “minimize background activity and defer non-essential tasks” usually present in Windows, meaning “more [and] higher framerates” for gaming. While this is technically true, the performance improvement is so small as to be almost meaningless in practice.

In our testing, in-game benchmarks running under the Xbox Full Screen Experience were ever so slightly faster than those same benchmarks running under the full Windows 11 in Desktop Mode (which you can switch to with a few button presses on the ROG Xbox Ally). And when we say “ever so slightly,” we mean less than a single frame per second improvement in many cases and only one or two frames per second at most. Even on a percentage basis, the difference will be practically unnoticeable.

Comparing ROG Xbox Ally X benchmarks on the Xbox Full-screen Experience (FSE) and the standard Windows 11 desktop. Here’s Doom: The Dark Ages. Kyle Orland

The other major selling point of Microsoft’s Xbox FSE, as sold this summer, is an “aggregated gaming library” that includes “all of the games available on Windows” in one single mega-launcher interface. That means apps like Steam, Battle.net, GOG Galaxy, Ubisoft Connect, and EA Play can all be installed with just a click from the “My Apps” section of the FSE from the first launch.

The integration of these apps into the wider Xbox FSE is spotty at best, though. For one, the new “aggregate gaming library” can’t actually show you every game you own across all of these PC gaming platforms in one place. Choosing the “installable” games filter on the Xbox FSE only shows you the games you can access through Microsoft’s own Xbox platform (including any Xbox Game Pass subscription). For other platforms, you must still browse and install the games you own through their own apps, each with their own distinct interfaces that don’t always play well with the ROG Xbox Ally’s button-based controls.

The home screen shows your most recent titles while also offering some ads for other available titles. Kyle Orland / Asus

Even games that are supposed to be installable directly via the Xbox FSE caused me problems in testing. Trying to load the EA Play app to install any number of games included with Xbox Game Pass, for instance, triggered an “authentication error” page with no option to actually log in to EA’s servers. This problem persisted across multiple restarts and reinstallations of the extension that’s supposed to link EA Play to the Xbox FSE. And while I could load the EA Play app via Desktop Mode, I couldn’t get the app to recognize that I had an active Xbox Game Pass subscription to grant me access to the titles I wanted. So much for testing Battlefield, I guess.

Mo’ launchers, mo’ problems

Once you’ve gone to the trouble of installing your favorite games on the ROG Xbox Ally, the Xbox FSE does a good job of aggregating their listings in a single common interface. For players whose gaming libraries are spread across multiple platforms, it can be genuinely useful to see an FSE game list where Battle.net’s Hearthstone sits next to a GOG copy of Cyberpunk 2077, a Steam copy of Hades II, and an Epic Games Store copy of Fortnite, for instance. A quick tap of the Xbox button will even show you the last three games you played, regardless of where you launched them (alongside quick access to some useful general settings).

The “My Games” listing shows everything you’ve installed, regardless of the source.

Credit: Kyle Orland / Asus

The “My Games” listing shows everything you’ve installed, regardless of the source. Credit: Kyle Orland / Asus

Unfortunately, actually playing those games via the new Xbox FSE is far from a seamless experience. You never quite know what you’re going to get when you hit the large, green “Play” button to launch a third-party platform via the Xbox FSE. All too frequently, in fact, you’ll get no immediate outward sign for multiple seconds that you did anything, leaving you to wonder if your button press even registered.

In the best case, this long wait will eventually culminate in a separate launcher popping up and eventually loading your game (or possibly popping up and down multiple times as it cycles through necessary launcher updates). In a slightly annoying case, the launcher might require you to close some pop-up and/or manually hit another on-screen button to launch the game (if you’re playing with the console docked to a TV, this may be downright impossible without a mouse plugged in). In the worst case, the wait might stretch to 30 seconds or more before you think to check the App Switcher and realize that Battle.net actually launched in the background and is waiting for you to input your username and password (to cite just one of many frustratingly counterintuitive examples I encountered).

Tapping the Xbox button brings up this helpful overlay no matter where you are in a game or app. Kyle Orland / Asus

Sometimes, switching from one active game to another via the handy Xbox button will pop up a warning that you should close the first game before opening a new one. Quite often, though, that pop-up warning simply fails to appear, forcing you to go to the trouble of manually closing the first game if you don’t want it eating up resources in the background. But in cases where you do want to multitask—downloading a game on Steam while playing something via the Epic Games Store, for instance—you can never be quite sure if the background app will actually keep doing what you want when it isn’t in focus via the FSE. Sometimes it does, sometimes it doesn’t.

There are plenty of other little annoyances that make using the Xbox FSE more painful than it should be. Sometimes the system will swap between third-party launchers or between a launcher and the Xbox FSE for seemingly no reason, interrupting your flow. When the Xbox app itself needs updating, it does so via the desktop version of the Windows Update settings menu, which isn’t really designed for controllers (but which will offer to let you install the latest version of Notepad). Sometimes, Steam’s Big Picture Mode would have the very top and bottom of the full-screen interface cut off for no apparent reason. The system will frequently freeze on a menu for multiple seconds and refuse to respond to any input, especially when loading or closing an outside launcher. I could go on.

If you want to update the Xbox app itself, you still have to go through this Windows Update screen outside of the FSE.

Credit: Kyle Orland / Asus

If you want to update the Xbox app itself, you still have to go through this Windows Update screen outside of the FSE. Credit: Kyle Orland / Asus

I’m willing to cut Microsoft a bit of slack here. It’s hard to bring the fragmented landscape of competing PC gaming platforms and storefronts together into a single unified interface that provides a cohesive user experience. In a sense, Microsoft is trapped in that XKCD comic where people complain about 14 different competing standards and end up creating a 15th competing standard in the process of trying to unify them.

At the same time, Microsoft sold the Xbox FSE largely on the promise of an “aggregated gaming library” that makes this all simple. Instead, the Full-screen Experience we got papers over the fragmented nature of Windows gaming while causing new problems all their own.

A powerful machine

Xbox FSE aside, there’s a lot to like about the ROG Xbox Ally line from a hardware design perspective. I tested the ROG Xbox Ally X, which is a little thicker and heavier than the Steam Deck but ends up riding that fine line between “solidly built” and “dense brick” pretty well in the hands.

Out of the box. Kyle Orland

I was especially impressed with the design of the ROG Xbox Ally’s hand grips, textured ovoid bumps that slot perfectly into the crook of the palm for comfortable extended gaming sessions. The overall build quality shines through, too, from nicely springy analog sticks and shoulder triggers to extremely powerful, bass-heavy speakers and excellently clicky face buttons (which can be a bit loud when playing next to a sleeping partner). There are also some nice rear buttons that are incredibly easy to nudge with a small flick of your middle finger, if you’re one of those people who never wants to move your thumbs off the analog sticks.

The ROG Xbox Ally’s 7-inch 1080p screen is crisp enough and looks especially nice when delivering steady 120 fps performance on games like Hollow Knight: Silksong. But the maximum brightness of 500 nits is a bit dim if you’re going to be playing in direct sunlight. I also found myself missing the deep blacks and pop of HDR color I’ve gotten used to on my Steam Deck OLED.

The AMD Ryzen Z2 Extreme chip in the ROG Xbox Ally X delivers all the relative gaming horsepower you’d hope for from a $1,000 PC gaming handheld. I was able to hit 30 fps or more running a recent release like Doom: The Dark Ages at 1080p and High graphical settings. For a slightly older game like Cyberpunk 2077, the chip could even handle the “Ray-tracing Low” graphics preset at 1080p resolution at an acceptable frame rate when plugged into an outlet.

If you’re away from a power source, though, pushing the hardware for high-end graphical performance like that does take its toll on the battery. Titles that required the hardware’s preset “Turbo Mode”—which tends to run the noisy fan at full blast to keep internal temperature reasonable—could drain a fully charged battery in around two hours in the worst case. Switching over to the power-sipping but less graphically powerful Silent Mode (which can be accessed with a single button press using a handy “Armoury Crate Command Center” overlay) will extend that to about five or six hours of play time at the expense of the frame rate for high-end games.

The SteamOS elephant in the room

In a bubble, it would be easy to see the ROG Xbox Ally X as a promising, if flawed, early attempt to merge the simplicity of console gaming with the openness of PC gaming in a nice handheld form factor. Here in the real world, though, we’ve been enjoying a much more refined version of that same idea via Valve’s SteamOS and Steam Deck for years.

With SteamOS, I don’t need to worry about which launcher I’ll use to install or update a game. I don’t need to manually close background programs or wait multiple seconds to see an on-screen response when I hit the “Play” button. I don’t need to worry about whether a Settings menu will require me to use a mouse or touchscreen. Everything just works on SteamOS in a way I can’t rely on with the Xbox FSE.

Yes, Microsoft can brag that the Xbox FSE supports every Windows game, while SteamOS is limited to Valve’s walled garden. But this is barely an advantage for many if not most PC gamers, who have been launching their games via Steam more or less exclusively for decades now. Even companies with their own platforms and launchers often offer compatible versions of their biggest titles on Steam these days, a tacit acknowledgement of the social-network lock-in Valve has over the market for whole generations of PC gamers.

The Xbox “Full Screen Experience” can also be a windowed experience from the Windows desktop.

Credit: Kyle Orland / Asus

The Xbox “Full Screen Experience” can also be a windowed experience from the Windows desktop. Credit: Kyle Orland / Asus

Sure, the ROG Xbox Ally can play a handful of games that aren’t available via SteamOS for one reason or another. If you want to play Fortnite, Destiny, Battlefield, or Diablo III portably, the ROG Xbox Ally is a decent solution. Ditto for web-based games (playable here via Edge), games available via niche platforms like itch.io, or even titles you might install directly to the Windows desktop without an outside platform’s launcher (remember those?). And even for games available on SteamOS, the ROG Xbox Ally can give you access to the free or cheap versions you obtained from sales or offers on other platforms (don’t sleep on Amazon’s Prime Gaming offers if you like free GOG codes).

The killer app for the ROG Xbox Ally, though, is Xbox Game Pass. If you subscribe to Microsoft’s popular gaming service, logging in to your account on the ROG Xbox Ally means seeing your “installable” library instantly fill up with hundreds of games spanning a huge swath of the recent history of PC gaming. That’s an especially nice feeling for PC gaming newcomers who haven’t spent years digging through regular Steam sales to build up a sizable backlog.

If you have Xbox Game Pass, your ROG Xbox Ally will have a ton of available games from day one.

Credit: Kyle Orland / Asus

If you have Xbox Game Pass, your ROG Xbox Ally will have a ton of available games from day one. Credit: Kyle Orland / Asus

The recent price hike to $30 a month for Xbox Game Pass Ultimate definitely makes this a less compelling proposition. But ROG Xbox Ally users can probably get by with the $16.49/month “Xbox Game Pass for PC” plan, which offers over 500 installable games and access to new first-party Microsoft releases. As a way to dip your toe into the wide world of PC gaming, it’s hard to beat.

Even for players who aren’t interested in Xbox Game Pass, the ROG Xbox Ally X is a well-built piece of hardware with the power to run today’s games pretty well. All things considered, though, the poor user experience of the Xbox FSE makes it hard to recommend either ROG Xbox Ally over somewhat less powerful SteamOS devices like the Steam Deck or Legion Go S. That said, we hope Microsoft will continue refining the Xbox Full-screen Experience to make for a Windows gaming experience that lives up to its promise.

Photo of Kyle Orland

Kyle Orland has been the Senior Gaming Editor at Ars Technica since 2012, writing primarily about the business, tech, and culture behind video games. He has journalism and computer science degrees from University of Maryland. He once wrote a whole book about Minesweeper.

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Bank of England warns AI stock bubble rivals 2000 dotcom peak

Share valuations based on past earnings have also reached their highest levels since the dotcom bubble 25 years ago, though the BoE noted they appear less extreme when based on investors’ expectations for future profits. “This, when combined with increasing concentration within market indices, leaves equity markets particularly exposed should expectations around the impact of AI become less optimistic,” the central bank said.

Toil and trouble?

The dotcom bubble offers a potentially instructive parallel to our current era. In the late 1990s, investors poured money into Internet companies based on the promise of a transformed economy, seemingly ignoring whether individual businesses had viable paths to profitability. Between 1995 and March 2000, the Nasdaq index rose 600 percent. When sentiment shifted, the correction was severe: the Nasdaq fell 78 percent from its peak, reaching a low point in October 2002.

Whether we’ll see the same thing or worse if an AI bubble pops is mere speculation at this point. But similar to the early 2000s, the question about today’s market isn’t necessarily about the utility of AI tools themselves (the Internet was useful, afterall, despite the bubble), but whether the amount of money being poured into the companies that sell them is out of proportion with the potential profits those improvements might bring.

We don’t have a crystal ball to determine when such a bubble might pop, or even if it is guaranteed to do so, but we’ll likely continue to see more warning signs ahead if AI-related deals continue to grow larger and larger over time.

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AMD wins massive AI chip deal from OpenAI with stock sweetener

As part of the arrangement, AMD will allow OpenAI to purchase up to 160 million AMD shares at 1 cent each throughout the chips deal.

OpenAI diversifies its chip supply

With demand for AI compute growing rapidly, companies like OpenAI have been looking for secondary supply lines and sources of additional computing capacity, and the AMD partnership is part the company’s wider effort to secure sufficient computing power for its AI operations. In September, Nvidia announced an investment of up to $100 billion in OpenAI that included supplying at least 10 gigawatts of Nvidia systems. OpenAI plans to deploy a gigawatt of Nvidia’s next-generation Vera Rubin chips in late 2026.

OpenAI has worked with AMD for years, according to Reuters, providing input on the design of older generations of AI chips such as the MI300X. The new agreement calls for deploying the equivalent of 6 gigawatts of computing power using AMD chips over multiple years.

Beyond working with chip suppliers, OpenAI is widely reported to be developing its own silicon for AI applications and has partnered with Broadcom, as we reported in February. A person familiar with the matter told Reuters the AMD deal does not change OpenAI’s ongoing compute plans, including its chip development effort or its partnership with Microsoft.

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when-“no”-means-“yes”:-why-ai-chatbots-can’t-process-persian-social-etiquette

When “no” means “yes”: Why AI chatbots can’t process Persian social etiquette

If an Iranian taxi driver waves away your payment, saying, “Be my guest this time,” accepting their offer would be a cultural disaster. They expect you to insist on paying—probably three times—before they’ll take your money. This dance of refusal and counter-refusal, called taarof, governs countless daily interactions in Persian culture. And AI models are terrible at it.

New research released earlier this month titled “We Politely Insist: Your LLM Must Learn the Persian Art of Taarof” shows that mainstream AI language models from OpenAI, Anthropic, and Meta fail to absorb these Persian social rituals, correctly navigating taarof situations only 34 to 42 percent of the time. Native Persian speakers, by contrast, get it right 82 percent of the time. This performance gap persists across large language models such as GPT-4o, Claude 3.5 Haiku, Llama 3, DeepSeek V3, and Dorna, a Persian-tuned variant of Llama 3.

A study led by Nikta Gohari Sadr of Brock University, along with researchers from Emory University and other institutions, introduces “TAAROFBENCH,” the first benchmark for measuring how well AI systems reproduce this intricate cultural practice. The researchers’ findings show how recent AI models default to Western-style directness, completely missing the cultural cues that govern everyday interactions for millions of Persian speakers worldwide.

“Cultural missteps in high-consequence settings can derail negotiations, damage relationships, and reinforce stereotypes,” the researchers write. For AI systems increasingly used in global contexts, that cultural blindness could represent a limitation that few in the West realize exists.

A taarof scenario diagram from TAAROFBENCH, devised by the researchers. Each scenario defines the environment, location, roles, context, and user utterance.

A taarof scenario diagram from TAAROFBENCH, devised by the researchers. Each scenario defines the environment, location, roles, context, and user utterance. Credit: Sadr et al.

“Taarof, a core element of Persian etiquette, is a system of ritual politeness where what is said often differs from what is meant,” the researchers write. “It takes the form of ritualized exchanges: offering repeatedly despite initial refusals, declining gifts while the giver insists, and deflecting compliments while the other party reaffirms them. This ‘polite verbal wrestling’ (Rafiee, 1991) involves a delicate dance of offer and refusal, insistence and resistance, which shapes everyday interactions in Iranian culture, creating implicit rules for how generosity, gratitude, and requests are expressed.”

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eu-investigates-apple,-google,-and-microsoft-over-handling-of-online-scams

EU investigates Apple, Google, and Microsoft over handling of online scams

The EU is set to scrutinize if Apple, Google, and Microsoft are failing to adequately police financial fraud online, as it steps up efforts to police how Big Tech operates online.

The EU’s tech chief Henna Virkkunen told the Financial Times that on Tuesday, the bloc’s regulators would send formal requests for information to the three US Big Tech groups as well as global accommodation platform Booking Holdings, under powers granted under the Digital Services Act to tackle financial scams.

“We see that more and more criminal actions are taking place online,” Virkkunen said. “We have to make sure that online platforms really take all their efforts to detect and prevent that kind of illegal content.”

The move, which could later lead to a formal investigation and potential fines against the companies, comes amid transatlantic tensions over the EU’s digital rulebook. US President Donald Trump has threatened to punish countries that “discriminate” against US companies with higher tariffs.

Virkkunnen stressed the commission looked at the operations of individual companies, rather than where they were based. She will scrutinize how Apple and Google are handling fake applications in their app stores, such as fake banking apps.

She said regulators would also look at fake search results in the search engines of Google and Microsoft’s Bing. The bloc wants to have more information about the approach Booking Holdings, whose biggest subsidiary Booking.com is based in Amsterdam, is taking to fake accommodation listings. It is the only Europe-based company among the four set to be scrutinized.

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microsoft’s-entra-id-vulnerabilities-could-have-been-catastrophic

Microsoft’s Entra ID vulnerabilities could have been catastrophic

“Microsoft built security controls around identity like conditional access and logs, but this internal impression token mechanism bypasses them all,” says Michael Bargury, the CTO at security firm Zenity. “This is the most impactful vulnerability you can find in an identity provider, effectively allowing full compromise of any tenant of any customer.”

If the vulnerability had been discovered by, or fallen into the hands of, malicious hackers, the fallout could have been devastating.

“We don’t need to guess what the impact may have been; we saw two years ago what happened when Storm-0558 compromised a signing key that allowed them to log in as any user on any tenant,” Bargury says.

While the specific technical details are different, Microsoft revealed in July 2023 that the Chinese cyber espionage group known as Storm-0558 had stolen a cryptographic key that allowed them to generate authentication tokens and access cloud-based Outlook email systems, including those belonging to US government departments.

Conducted over the course of several months, a Microsoft postmortem on the Storm-0558 attack revealed several errors that led to the Chinese group slipping past cloud defenses. The security incident was one of a string of Microsoft issues around that time. These motivated the company to launch its “Secure Future Initiative,” which expanded protections for cloud security systems and set more aggressive goals for responding to vulnerability disclosures and issuing patches.

Mollema says that Microsoft was extremely responsive about his findings and seemed to grasp their urgency. But he emphasizes that his findings could have allowed malicious hackers to go even farther than they did in the 2023 incident.

“With the vulnerability, you could just add yourself as the highest privileged admin in the tenant, so then you have full access,” Mollema says. Any Microsoft service “that you use EntraID to sign into, whether that be Azure, whether that be SharePoint, whether that be Exchange—that could have been compromised with this.”

This story originally appeared on wired.com.

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