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ny-times-copyright-suit-wants-openai-to-delete-all-gpt-instances

NY Times copyright suit wants OpenAI to delete all GPT instances

Not the sincerest form of flattery —

Shows evidence that GPT-based systems will reproduce Times articles if asked.

Image of a CPU on a motherboard with

Enlarge / Microsoft is named in the suit for allegedly building the system that allowed GPT derivatives to be trained using infringing material.

In August, word leaked out that The New York Times was considering joining the growing legion of creators that are suing AI companies for misappropriating their content. The Times had reportedly been negotiating with OpenAI regarding the potential to license its material, but those talks had not gone smoothly. So, eight months after the company was reportedly considering suing, the suit has now been filed.

The Times is targeting various companies under the OpenAI umbrella, as well as Microsoft, an OpenAI partner that both uses it to power its Copilot service and helped provide the infrastructure for training the GPT Large Language Model. But the suit goes well beyond the use of copyrighted material in training, alleging that OpenAI-powered software will happily circumvent the Times’ paywall and ascribe hallucinated misinformation to the Times.

Journalism is expensive

The suit notes that The Times maintains a large staff that allows it to do things like dedicate reporters to a huge range of beats and engage in important investigative journalism, among other things. Because of those investments, the newspaper is often considered an authoritative source on many matters.

All of that costs money, and The Times earns that by limiting access to its reporting through a robust paywall. In addition, each print edition has a copyright notification, the Times’ terms of service limit the copying and use of any published material, and it can be selective about how it licenses its stories. In addition to driving revenue, these restrictions also help it to maintain its reputation as an authoritative voice by controlling how its works appear.

The suit alleges that OpenAI-developed tools undermine all of that. “By providing Times content without The Times’s permission or authorization, Defendants’ tools undermine and damage The Times’s relationship with its readers and deprive The Times of subscription, licensing, advertising, and affiliate revenue,” the suit alleges.

Part of the unauthorized use The Times alleges came during the training of various versions of GPT. Prior to GPT-3.5, information about the training dataset was made public. One of the sources used is a large collection of online material called “Common Crawl,” which the suit alleges contains information from 16 million unique records from sites published by The Times. That places the Times as the third most referenced source, behind Wikipedia and a database of US patents.

OpenAI no longer discloses as many details of the data used for training of recent GPT versions, but all indications are that full-text NY Times articles are still part of that process (Much more on that in a moment.) Expect access to training information to be a major issue during discovery if this case moves forward.

Not just training

A number of suits have been filed regarding the use of copyrighted material during training of AI systems. But the Times’ suit goes well beyond that to show how the material ingested during training can come back out during use. “Defendants’ GenAI tools can generate output that recites Times content verbatim, closely summarizes it, and mimics its expressive style, as demonstrated by scores of examples,” the suit alleges.

The suit alleges—and we were able to verify—that it’s comically easy to get GPT-powered systems to offer up content that is normally protected by the Times’ paywall. The suit shows a number of examples of GPT-4 reproducing large sections of articles nearly verbatim.

The suit includes screenshots of ChatGPT being given the title of a piece at The New York Times and asked for the first paragraph, which it delivers. Getting the ensuing text is apparently as simple as repeatedly asking for the next paragraph.

ChatGPT has apparently closed that loophole in between the preparation of that suit and the present. We entered some of the prompts shown in the suit, and were advised “I recommend checking The New York Times website or other reputable sources,” although we can’t rule out that context provided prior to that prompt could produce copyrighted material.

Ask for a paragraph, and Copilot will hand you a wall of normally paywalled text.

Ask for a paragraph, and Copilot will hand you a wall of normally paywalled text.

John Timmer

But not all loopholes have been closed. The suit also shows output from Bing Chat, since rebranded as Copilot. We were able to verify that asking for the first paragraph of a specific article at The Times caused Copilot to reproduce the first third of the article.

The suit is dismissive of attempts to justify this as a form of fair use. “Publicly, Defendants insist that their conduct is protected as ‘fair use’ because their unlicensed use of copyrighted content to train GenAI models serves a new ‘transformative’ purpose,” the suit notes. “But there is nothing ‘transformative’ about using The Times’s content without payment to create products that substitute for The Times and steal audiences away from it.”

Reputational and other damages

The hallucinations common to AI also came under fire in the suit for potentially damaging the value of the Times’ reputation, and possibly damaging human health as a side effect. “A GPT model completely fabricated that “The New York Times published an article on January 10, 2020, titled ‘Study Finds Possible Link between Orange Juice and Non-Hodgkin’s Lymphoma,’” the suit alleges. “The Times never published such an article.”

Similarly, asking about a Times article on heart-healthy foods allegedly resulted in Copilot saying it contained a list of examples (which it didn’t). When asked for the list, 80 percent of the foods on weren’t even mentioned by the original article. In another case, recommendations were ascribed to the Wirecutter when the products hadn’t even been reviewed by its staff.

As with the Times material, it’s alleged that it’s possible to get Copilot to offer up large chunks of Wirecutter articles (The Wirecutter is owned by The New York Times). But the suit notes that these article excerpts have the affiliate links stripped out of them, keeping the Wirecutter from its primary source of revenue.

The suit targets various OpenAI companies for developing the software, as well as Microsoft—the latter for both offering OpenAI-powered services, and for having developed the computing systems that enabled the copyrighted material to be ingested during training. Allegations include direct, contributory, and vicarious copyright infringement, as well as DMCA and trademark violations. Finally, it alleges “Common Law Unfair Competition By Misappropriation.”

The suit seeks nothing less than the erasure of both any GPT instances that the parties have trained using material from the Times, as well as the destruction of the datasets that were used for the training. It also asks for a permanent injunction to prevent similar conduct in the future. The Times also wants money, lots and lots of money: “statutory damages, compensatory damages, restitution, disgorgement, and any other relief that may be permitted by law or equity.”

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big-tech-is-spending-more-than-vc-firms-on-ai-startups

Big Tech is spending more than VC firms on AI startups

money cannon —

Microsoft, Google, and Amazon haved crowded out traditional Silicon Valley investors.

A string of deals by Microsoft, Google and Amazon amounted to two-thirds of the $27 billion raised by fledgling AI companies in 2023,

Enlarge / A string of deals by Microsoft, Google and Amazon amounted to two-thirds of the $27 billion raised by fledgling AI companies in 2023,

FT montage/Dreamstime

Big tech companies have vastly outspent venture capital groups with investments in generative AI startups this year, as established giants use their financial muscle to dominate the much-hyped sector.

Microsoft, Google and Amazon last year struck a series of blockbuster deals, amounting to two-thirds of the $27 billion raised by fledgling AI companies in 2023, according to new data from private market researchers PitchBook.

The huge outlay, which exploded after the launch of OpenAI’s ChatGPT in November 2022, highlights how the biggest Silicon Valley groups are crowding out traditional tech investors for the biggest deals in the industry.

The rise of generative AI—systems capable of producing humanlike video, text, image and audio in seconds—have also attracted top Silicon Valley investors. But VCs have been outmatched, having been forced to slow down their spending as they adjust to higher interest rates and falling valuations for their portfolio companies.

“Over the past year, we’ve seen the market quickly consolidate around a handful of foundation models, with large tech players coming in and pouring billions of dollars into companies like OpenAI, Cohere, Anthropic and Mistral,” said Nina Achadjian, a partner at US venture firm Index Ventures referring to some of the top AI startups.

“For traditional VCs, you had to be in early and you had to have conviction—which meant being in the know on the latest AI research and knowing which teams were spinning out of Google DeepMind, Meta and others,” she added.

Financial Times

A string of deals, such as Microsoft’s $10 billion investment in OpenAI as well as billions of dollars raised by San Francisco-based Anthropic from both Google and Amazon, helped push overall spending on AI groups to nearly three times as much as the previous record of $11 billion set two years ago.

Venture investing in tech hit record levels in 2021, as investors took advantage of ultra-low interest rates to raise and deploy vast sums across a range of industries, particularly those most disrupted by Covid-19.

Microsoft has also committed $1.3 billion to Inflection, another generative AI start-up, as it looks to steal a march on rivals such as Google and Amazon.

Building and training generative AI tools is an intensive process, requiring immense computing power and cash. As a result, start-ups have preferred to partner with Big Tech companies which can provide cloud infrastructure and access to the most powerful chips as well as dollars.

That has rapidly pushed up the valuations of private start-ups in the space, making it harder for VCs to bet on the companies at the forefront of the technology. An employee stock sale at OpenAI is seeking to value the company at $86 billion, almost treble the valuation it received earlier this year.

“Even the world’s top venture investors, with tens of billions under management, can’t compete to keep these AI companies independent and create new challengers that unseat the Big Tech incumbents,” said Patrick Murphy, founding partner at Tapestry VC, an early-stage venture capital firm.

“In this AI platform shift, most of the potentially one-in-a-million companies to appear so far have been captured by the Big Tech incumbents already.”

VCs are not absent from the market, however. Thrive Capital, Josh Kushner’s New York-based firm, is the lead investor in OpenAI’s employee stock sale, having already backed the company earlier this year. Thrive has continued to invest throughout a downturn in venture spending in 2023.

Paris-based Mistral raised around $500 million from investors including venture firms Andreessen Horowitz and General Catalyst, and chipmaker Nvidia since it was founded in May this year.

Some VCs are seeking to invest in companies building applications that are being built over so-called “foundation models” developed by OpenAI and Anthropic, in much the same way apps began being developed on mobile devices in the years after smartphones were introduced.

“There is this myth that only the foundation model companies matter,” said Sarah Guo, founder of AI-focused venture firm Conviction. “There is a huge space of still-unexplored application domains for AI, and a lot of the most valuable AI companies will be fundamentally new.”

Additional reporting by Tim Bradshaw.

© 2023 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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microsoft-releases-downloadable-tool-to-fix-phantom-hp-printer-installations

Microsoft releases downloadable tool to fix phantom HP printer installations

unprint —

Windows 10 and 11 users noticed this bug earlier this month.

The HP LaserJet M106w is one of the printer models that is mysteriously appearing for some users in Windows 10 and 11.

Enlarge / The HP LaserJet M106w is one of the printer models that is mysteriously appearing for some users in Windows 10 and 11.

HP

Earlier this month, Microsoft disclosed an odd printer bug that was affecting some users of Windows 10, Windows 11, and various Windows Server products. Affected PCs were seeing an HP printer installed, usually an HP LaserJet M101-M106, even when they weren’t actually using any kind of HP printer. This bug could overwrite the settings for whatever printer the user actually did have installed and also prompted the installation of an HP Smart printer app from the Microsoft Store.

Microsoft still hasn’t shared the root cause of the problem, though it did make it clear that the problem wasn’t HP’s fault. Now, the company has released a fix for anyone whose PC was affected by the bug, though as of this writing, it requires users to download and run a dedicated troubleshooting tool available from Microsoft’s support site.

The December 2023 Microsoft Printer Metadata Troubleshooter Tool is available for all affected Windows versions, and it will remove all references to the phantom HP LaserJet model (as long as you don’t have one installed, anyway). The tool will also remove the HP Smart app as long as you don’t have an HP printer attached and the app was installed after November 25, presumably the date that the bug began affecting systems. These steps should fix the issue for anyone without an HP printer without breaking anything for people who do use HP printers.

There are four different versions of the troubleshooter, depending on whether you have the 32- or 64-bit version of an Arm or x86 version of Windows. Microsoft will also release an additional recommended troubleshooting tool “in the coming weeks” that will fix the problem in Windows 11 upon a user’s request without requiring the download of a separate tool.

Microsoft has said that, despite the renaming and the download of the HP Smart tool, most basic printing functionality should continue to work as intended for users affected by the problem. But if your printer relies on its own external app to provide additional settings or extra functionality, you’ll need to run the troubleshooting tool (or manually uninstall the phantom HP printer and reinstall your own printer) to get things working properly again.

Listing image by Getty

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a-song-of-hype-and-fire:-the-10-biggest-ai-stories-of-2023

A song of hype and fire: The 10 biggest AI stories of 2023

An illustration of a robot accidentally setting off a mushroom cloud on a laptop computer.

Getty Images | Benj Edwards

“Here, There, and Everywhere” isn’t just a Beatles song. It’s also a phrase that recalls the spread of generative AI into the tech industry during 2023. Whether you think AI is just a fad or the dawn of a new tech revolution, it’s been impossible to deny that AI news has dominated the tech space for the past year.

We’ve seen a large cast of AI-related characters emerge that includes tech CEOs, machine learning researchers, and AI ethicists—as well as charlatans and doomsayers. From public feedback on the subject of AI, we’ve heard that it’s been difficult for non-technical people to know who to believe, what AI products (if any) to use, and whether we should fear for our lives or our jobs.

Meanwhile, in keeping with a much-lamented trend of 2022, machine learning research has not slowed down over the past year. On X, former Biden administration tech advisor Suresh Venkatasubramanian wrote, “How do people manage to keep track of ML papers? This is not a request for support in my current state of bewilderment—I’m genuinely asking what strategies seem to work to read (or “read”) what appear to be 100s of papers per day.”

To wrap up the year with a tidy bow, here’s a look back at the 10 biggest AI news stories of 2023. It was very hard to choose only 10 (in fact, we originally only intended to do seven), but since we’re not ChatGPT generating reams of text without limit, we have to stop somewhere.

Bing Chat “loses its mind”

Aurich Lawson | Getty Images

In February, Microsoft unveiled Bing Chat, a chatbot built into its languishing Bing search engine website. Microsoft created the chatbot using a more raw form of OpenAI’s GPT-4 language model but didn’t tell everyone it was GPT-4 at first. Since Microsoft used a less conditioned version of GPT-4 than the one that would be released in March, the launch was rough. The chatbot assumed a temperamental personality that could easily turn on users and attack them, tell people it was in love with them, seemingly worry about its fate, and lose its cool when confronted with an article we wrote about revealing its system prompt.

Aside from the relatively raw nature of the AI model Microsoft was using, at fault was a system where very long conversations would push the conditioning system prompt outside of its context window (like a form of short-term memory), allowing all hell to break loose through jailbreaks that people documented on Reddit. At one point, Bing Chat called me “the culprit and the enemy” for revealing some of its weaknesses. Some people thought Bing Chat was sentient, despite AI experts’ assurances to the contrary. It was a disaster in the press, but Microsoft didn’t flinch, and it ultimately reigned in some of Bing Chat’s wild proclivities and opened the bot widely to the public. Today, Bing Chat is now known as Microsoft Copilot, and it’s baked into Windows.

US Copyright Office says no to AI copyright authors

An AI-generated image that won a prize at the Colorado State Fair in 2022, later denied US copyright registration.

Enlarge / An AI-generated image that won a prize at the Colorado State Fair in 2022, later denied US copyright registration.

Jason M. Allen

In February, the US Copyright Office issued a key ruling on AI-generated art, revoking the copyright previously granted to the AI-assisted comic book “Zarya of the Dawn” in September 2022. The decision, influenced by the revelation that the images were created using the AI-powered Midjourney image generator, stated that only the text and arrangement of images and text by Kashtanova were eligible for copyright protection. It was the first hint that AI-generated imagery without human-authored elements could not be copyrighted in the United States.

This stance was further cemented in August when a US federal judge ruled that art created solely by AI cannot be copyrighted. In September, the US Copyright Office rejected the registration for an AI-generated image that won a Colorado State Fair art contest in 2022. As it stands now, it appears that purely AI-generated art (without substantial human authorship) is in the public domain in the United States. This stance could be further clarified or changed in the future by judicial rulings or legislation.

A song of hype and fire: The 10 biggest AI stories of 2023 Read More »

how-microsoft’s-cybercrime-unit-has-evolved-to-combat-increased-threats

How Microsoft’s cybercrime unit has evolved to combat increased threats

a more sophisticated DCU —

Microsoft has honed its strategy to disrupt global cybercrime and state-backed actors.

Microsoft's Cybercrime Center.

Microsoft’s Cybercrime Center.

Microsoft

Governments and the tech industry around the world have been scrambling in recent years to curb the rise of online scamming and cybercrime. Yet even with progress on digital defenses, enforcement, and deterrence, the ransomware attacks, business email compromises, and malware infections keep on coming. Over the past decade, Microsoft’s Digital Crimes Unit (DCU) has forged its own strategies, both technical and legal, to investigate scams, take down criminal infrastructure, and block malicious traffic.

The DCU is fueled, of course, by Microsoft’s massive scale and the visibility across the Internet that comes from the reach of Windows. But DCU team members repeatedly told WIRED that their work is motivated by very personal goals of protecting victims rather than a broad policy agenda or corporate mandate.

In just its latest action, the DCU announced Wednesday evening efforts to disrupt a cybercrime group that Microsoft calls Storm-1152. A middleman in the criminal ecosystem, Storm-1152 sells software services and tools like identity verification bypass mechanisms to other cybercriminals. The group has grown into the number one creator and vendor of fake Microsoft accounts—creating roughly 750 million scam accounts that the actor has sold for millions of dollars.

The DCU used legal techniques it has honed over many years related to protecting intellectual property to move against Storm-1152. The team obtained a court order from the Southern District of New York on December 7 to seize some of the criminal group’s digital infrastructure in the US and take down websites including the services 1stCAPTCHA, AnyCAPTCHA, and NoneCAPTCHA, as well as a site that sold fake Outlook accounts called Hotmailbox.me.

The strategy reflects the DCU’s evolution. A group with the name “Digital Crimes Unit” has existed at Microsoft since 2008, but the team in its current form took shape in 2013 when the old DCU merged with a Microsoft team known as the Intellectual Property Crimes Unit.

“Things have become a lot more complex,” says Peter Anaman, a DCU principal investigator. “Traditionally you would find one or two people working together. Now, when you’re looking at an attack, there are multiple players. But if we can break it down and understand the different layers that are involved it will help us be more impactful.”

The DCU’s hybrid technical and legal approach to chipping away at cybercrime is still unusual, but as the cybercriminal ecosystem has evolved—alongside its overlaps with state-backed hacking campaigns—the idea of employing creative legal strategies in cyberspace has become more mainstream. In recent years, for example, Meta-owned WhatsApp and Apple both took on the notorious spyware maker NSO Group with lawsuits.

Still, the DCU’s particular progression was the result of Microsoft’s unique dominance during the rise of the consumer Internet. As the group’s mission came into focus while dealing with threats from the late 2000s and early 2010s—like the widespread Conficker worm—the DCU’s unorthodox and aggressive approach drew criticism at times for its fallout and potential impacts on legitimate businesses and websites.

“There’s simply no other company that takes such a direct approach to taking on scammers,” WIRED wrote in a story about the DCU from October 2014. “That makes Microsoft rather effective, but also a little bit scary, observers say.”

Richard Boscovich, the DCU’s assistant general counsel and a former assistant US attorney in Florida’s Southern District, told WIRED in 2014 that it was frustrating for people within Microsoft to see malware like Conficker rampage across the web and feel like the company could improve the defenses of its products, but not do anything to directly deal with the actors behind the crimes. That dilemma spurred the DCU’s innovations and continues to do so.

“What’s impacting people? That’s what we get asked to take on, and we’ve developed a muscle to change and to take on new types of crime,” says Zoe Krumm, the DCU’s director of analytics. In the mid-2000s, Krumm says, Brad Smith, now Microsoft’s vice chair and president, was a driving force in turning the company’s attention toward the threat of email spam.

“The DCU has always been a bit of an incubation team. I remember all of a sudden, it was like, ‘We have to do something about spam.’ Brad comes to the team and he’s like, ‘OK, guys, let’s put together a strategy.’ I’ll never forget that it was just, ‘Now we’re going to focus here.’ And that has continued, whether it be moving into the malware space, whether it be tech support fraud, online child exploitation, business email compromise.”

How Microsoft’s cybercrime unit has evolved to combat increased threats Read More »

gg-microsoft!-uk-clears-$69b-activision-blizzard-deal

GG Microsoft! UK clears $69B Activision Blizzard deal

After a lengthy process of regulatory scrutiny, the biggest deal in gaming history finally has the all-clear. Today, the final hold-out in the saga, the UK’s CMA, said it had approved Microsoft’s acquisition of Activision Blizzard, after the parties had made “gamechanging” amendments to the terms. 

The antitrust watchdog stated it had been swayed by Activision’s agreement to sell its streaming rights to Ubisoft Entertainment. What this effectively means is that its blockbuster video games will not become exclusively available via streaming to Microsoft Xbox gamers following the takeover. 

“The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers,” the CMA said in a statement.

According to Statista, revenue in the cloud gaming market is projected to reach $4.34bn (€4.1bn) in 2023. It could then show an annual growth rate of 44.09%, which would result in a market volume of $18.71bn (€17.7bn) by 2027.

With the approval, Microsoft now has the opportunity to close the $69bn (€65.4bn) deal by October 18, three months after the original deadline. 

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The latest rumblings from the EU tech scene, a story from our wise ol’ founder Boris, and some questionable AI art. It’s free, every week, in your inbox. Sign up now!

CMA decidedly unhappy with Microsoft tactics 

Activision Blizzard makes household franchises such as Call of Duty, World of Warcraft, and Candy Crush. Microsoft first announced its intention to purchase the Fortune 500 video game publisher in early 2022. When the CMA blocked the deal in April this year, Microsoft said the UK was “closed for business,” and that it was the “darkest day” in its 40 years operating in the country.



The EU granted its approval in May 2023, while US regulators followed suit in July. Meanwhile, the lengthy back and forth with the UK watchdog has been one of the most publicised and contentious antitrust processes in Britain to date.



CMA chief executive Sarah Cardell said the agency had delivered a clear message to Microsoft that the deal would be blocked unless they comprehensively addressed concerns and “we stuck to our guns on that.” She further added that the CMA’s decision had been “free from political influence” and that the agency would not be “swayed by corporate lobbying.” 

“Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA,” Cardell stated, in what could be considered a less than entirely amicable tone. 

Hard to remember a more fractious affair, competition advisor says

Indeed, the CMA’s statements appear to lay down a marker that publicly litigating appeals against the agency in the press will be “seen in an exceedingly poor light in the future.” That is according to Gareth Mills, who is a partner at law firm Charles Russell Speechlys and advises on commercial dispute resolution, regulatory, and competition matters. 

“In a UK context, it’s hard to remember a more fractious affair and the comments made by the CMA’s chief executive as part of the approval makes it clear that some of Microsoft’s tactics have left a bitter taste, despite the final collaborative resolution,” Mills told TNW. 

“Ultimately, this approval allows both sides to claim a satisfactory result. Microsoft have the deal finalised and the CMA can justifiably point to the remedies offered by Microsoft to facilitate the deal’s approval as evidence that its original rejection was a correct use of its powers.”

For its part, Microsoft was somewhat more conciliatory in its comments on the approval than the CMA. Brad Smith, the tech giant’s vice chair and president, said:

“We’re grateful for the CMA’s thorough review and decision today. We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide.”

GG Microsoft! UK clears $69B Activision Blizzard deal Read More »

leaked-xbox-documents-show-xr-interest-but-no-immediate-plans

Leaked Xbox Documents Show XR Interest But No Immediate Plans

Leaked documents relating to Microsoft’s business strategy for Xbox show the company eyeing XR technology but continuing to keep it at arm’s length.

While Microsoft has previously taken considerable steps into XR with both HoloLens and the Windows Mixed Reality platform on PC, the company’s flagship gaming division, Xbox, has notably not joined the fray.

Over the years Xbox leadership has repeatedly pushed back on XR interest, saying the tech doesn’t yet have a large enough audience to warrant investment. And while it doesn’t look like we should expect anything relating to XR from Xbox in the near future, the company is at least continuing to eye the tech as a potential opportunity.

Road to VR reviewed the entirety of a trove of documents that leaked this week in connection with an ongoing Federal Trade Commission v. Microsoft court case. The documents, which reveal a significant portion of Microsoft’s long-term plans for the Xbox brand, show the company is still skeptical of XR but not discounting it in the long run.

In a mid-2022 ‘Gaming Strategy Review’ document, Xbox pointed to “AR / VR” as one of a handful of “opportunities” the company was mulling as part of its “early thoughts on [the] next generation of gaming.” In the same section the company pointed to tech like cloud gaming and ML & AI as potential areas of strategic focus.

In another section of the same document the company highlighted Windows Mixed Reality, OpenXR, WebVR, and HoloLens among many platforms and services that Xbox can leverage to build its “next gen platform for immersive apps and games.” Given the context of the document, however, it doesn’t seem that Xbox is specifically referring to XR when using the word “immersive.”

While Xbox has mentioned XR as a future opportunity, the company’s tone is still significantly skeptical that the tech has achieved a meaningful addressable audience.

In another section of the same document which overviewed Xbox’s competitors, the company pointed to Meta’s billions of dollars of investments into XR, but concluded by saying, “we view virtual reality as a niche gaming experience at this time.”

Another document from mid-2022, which overviewed the company’s long-term plans for Xbox all the way through 2030, noted that Microsoft wanted to expand its hardware portfolios to include new hardware categories, but nothing on that long-term roadmap pointed to any XR hardware.

While the leaked documents did focus on long timelines, business is always dynamic and priorities can shift quickly, so it’s important to remember that the documents are just a snapshot of Xbox’s view in mid-2022. With the more recent introduction of devices like Apple Vision Pro, it’s likely that Xbox is looking even more closely at how important XR may be to its future portfolio.

Leaked Xbox Documents Show XR Interest But No Immediate Plans Read More »

microsoft-to-supply-us-army-more-ar-combat-headsets-following-positive-field-test

Microsoft to Supply US Army More AR Combat Headsets Following Positive Field Test

Microsoft’s HoloLens-based headset built on contract for the US Army has passed an important round of field testing by soldiers. The company is now set to fulfill a larger order to be used in more rigorous testing slated to take place in 2025.

Awarded in 2019, Microsoft’s $22 billion defense contract is aiming to supply the US Army with a tactical AR headset for soldiers based on HoloLens 2 technology, or what’s called an Integrated Visual Augmentation System (IVAS),

According to Bloomberg, 20 prototype versions of the newer 1.2 IVAS headsets were field tested by two squads of solders in late August specifically to check for improvements in reliability, low-light performance and ergonomics. It was reported in early 2022 that Microsoft was bracing for negative field testing, citing concerns with low-light performance and nausea.

Taking place at Fort Drum, New York, those tests “demonstrated improvements in reliability, low light sensor performance, and form factor,” a US Army spokesperson told Bloomberg, saying further that “soldier feedback was positive.”

The Army awarded Microsoft another contract on September 5th for the 1.2 IVAS to see if the company could scale production. Its $22 billion contract indicates an upper target, and not the full amount granted to Microsoft at present.

Microsoft to Supply US Army More AR Combat Headsets Following Positive Field Test Read More »

xr-industry-giants-team-up-to-save-key-developer-tool

XR Industry Giants Team up to Save Key Developer Tool

Microsoft, Qualcomm and Magic Leap announced a partnership to “guide the evolution” of the Mixed Reality Toolkit (MRTK), a cross-platform AR/VR development framework which has now gone open-source.

MRTK was a Microsoft-driven project that provided a set of components and features used to accelerate cross-platform XR app development in the Unity game engine. The developing team behind MRTK was unfortunately disbanded, as Microsoft cut both MRTK and the AltspaceVR teams earlier this year in a wide-reaching round of layoffs.

Still, as an open-source project now, Microsoft is joining XR industry cohorts Qualcomm and Magic Leap to form their own independent organization within GitHub that aspires to transform the software into a “true multi-platform toolkit that enables greater third-party collaboration.”

“With Magic Leap joining Microsoft as equal stakeholders on the MRTK steering committee, we hope to enrich the current ecosystem and help our developer community create richer, more immersive experiences that span platforms,” Magic Leap says in a blogpost. “Additionally, our support for MRTK3 will allow for simple porting of MRTK3 apps from other OpenXR devices to our platform.”

MRTK3 already supports a wide range of platforms, either full or experimentally, including OpenXR devices like Microsoft HoloLens 2, Meta Quest, Windows Mixed Reality, SteamVR, Oculus Rift (on OpenXR), Lenovo ThinkReality A3, as well as Windows Traditional desktop. The committee says more devices are “coming soon,” one of which will likely be the Magic Leap 2 AR headset.

Meanwhile, Microsoft announced MRTK3 is on track to reach general availability to developers on the second week of September 2023. To learn more, check out Microsoft’s MRTK3 hub, which includes support info, tutorials, and more.

XR Industry Giants Team up to Save Key Developer Tool Read More »

microsoft-releases-initial-azure-cloud-rendering-support-for-quest-2-&-quest-pro

Microsoft Releases Initial Azure Cloud Rendering Support for Quest 2 & Quest Pro

Microsoft announced it’s released a public preview of Azure Remote Rendering support for Meta Quest 2 and Quest Pro, something that promises to allow devs to render complex 3D content in the cloud and stream it to those VR headsets in real-time.

Azure Remote Rendering, which already supports desktop and the company’s AR headset HoloLens 2, notably uses a hybrid rendering approach to combine remotely rendered content with locally rendered content.

Now supporting Quest 2 and Quest Pro, developers are able to integrate Microsoft’s Azure cloud rendering capabilities to do things like view large and complex models on Quest.

Microsoft says in a developer blog post that one such developer Fracture Reality has already integrated Azure Remote Rendering into its JoinXR platform, enhancing its CAD review and workflows for engineering clients.

Image courtesy Microsoft, Fracture Reality

The JoinXR model above was said to take 3.5 minutes to upload and contains 12.6 million polygons and 8K images.

While streaming XR content from the cloud isn’t a new phenomenon—Nvidia initially released its own CloudXR integration for AWS, Microsoft Azure, and Google Cloud in 2021—Microsoft offering direct integration is a hopeful sign that the company hasn’t given up on VR, and is actively looking to bring enterprise deeper into the fold.

If you’re looking to integrate Azure’s cloud rendering tech into your project, check out Microsoft’s step-by-step guide here.

Microsoft Releases Initial Azure Cloud Rendering Support for Quest 2 & Quest Pro Read More »

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Microsoft’s Meandering XR Strategy Could Lead to Another Zune Moment

At least from the outside, it appears Microsoft isn’t actively competing for a seat at the XR table, which is fairly odd coming from a company that pioneered enterprise AR while simultaneously wrangling some of its top OEM partners to make a fleet of PC VR headsets for consumers in 2017. Microsoft gained a great early start, but now the Redmond-based tech giant is positioned to play catchup, which historically hasn’t worked out that well. Could we be in for another ‘Zune moment’? If Microsoft goes in half-cocked, maybe.

Microsoft released the first-gen Zune in 2006, an MP3 player that looked to compete with Apple’s largely dominant line of iPods. By “largely dominant,” I mean Apple not only had majority market share of the product category, making it synonymous with portable music at the time, but had already produced numerous generations of iPod Classic, iPod Mini, iPod Nano and iPod Shuffle. Apple wasn’t the first to make a portable MP3 player, although it was the first to make one everyone wanted.

Now, I can hear the Zune defenders in my head, and I sympathize. Zune wasn’t terrible, and it came at a time when full-color screens in MP3 players were just becoming a thing. It had a compelling reason to exist, which is why Microsoft directly competed against iPod Touch over the course of three device generations before eventually giving up the goat in 2011 and discontinuing the third-gen Zune. Many chalk it up to poor marketing, lack of brand cache, and not enough music to choose from. Zooming out, Zune’s ultimate defeat belies a larger pattern of behavior.

Image courtesy Digital Trends

Zune didn’t generate the sort of loyal customer base that Apple had in spades because entering rapidly evolving product categories isn’t easy. By the time platforms solidify, companies that come too late are usually tasked with flipping what’s left of undecided users or attracting users away from other ecosystems with unique selling points. Even with viable hardware on your side, it’s not an easy thing to do.

To put it into perspective, Zune entered the market one year before Apple announced the first iPhone. From that moment Microsoft was forced to play catchup not only with its MP3 players, but with its widely maligned Windows Phones which came afterwards, of which there are famously few defenders. Needless to say, Apple’s iPhone is still kicking, and that iPod/iPhone success story is why Apple is largest company in the world.

Breaking the Zune Curse?

Don’t get me wrong, Microsoft has success stories. Windows is still the world’s largest PC operating system. Azure Cloud Platform competes alongside AWS and Google Cloud. There’s a reason why we call digital slideshows a PowerPoint no matter which program you use to make them, and that’s thanks to Microsoft’s ongoing dominance in the general computing space. When Microsoft gets in early and sticks it out, you don’t generally get a Zune.

To its credit, the company had the foresight to release HoloLens in 2016, a full two years before unicorn startup Magic Leap could get its first standalone AR headset out the door. Three years later it released HoloLens 2, which directly competes today against Magic Leap Two. When HoloLens 3 will arrive, or whether it’s even in the works, still isn’t clear. We’re hoping they stick it out and it doesn’t turn into a ‘Zune moment’ down the line.

The first wave of WMR headsets launched in 2017 | Image courtesy Microsoft

In 2017, Microsoft also managed to assemble a host of major OEMs to create what would be the first Windows VR headsets, which included PC VR headsets from Dell, Lenovo, Acer, HP, Samsung, and Asus. It was a good opening gambit to break up the Oculus/HTC Vive PC VR binary that had developed a year prior, although those Windows VR headsets weren’t just new hardware destined to hook into Steam content. Microsoft made its own Windows Mixed Reality Store which ultimately failed to compete with Steam for developers, which was kind of like a Zune owner somehow getting all their music from iTunes and not Zune Marketplace.

And we’re still early, although that may not be the case for long. Compared to smartphones today, the current XR landscape is toddling out of its infancy. You’d be surprised how much competition there is already, not only across multiple hardware platforms, but entire content ecosystems—something you can’t just grow over night. Currently major contenders are Meta, Sony, HTC, Valve, Pico, Pimax, and Apple starting next year. The future leaders are shaping up to be Sony, Meta and Apple, the last two moving into mixed reality (Meta Quest Pro, Meta Quest 3, Apple Vision Pro) which feature VR displays and color passthrough cameras for AR tasks, while Sony is already in their second-gen PlayStation VR. Things are changing, and Apple jumping into XR could see a host of other companies deciding they want a piece of the pie fairly soon.

Whatever the time frame, eventually the amount of money Microsoft leaves on the table is going to pile up until it can’t be ignored. That’s essentially the strategy the company has decided to take with Xbox at least, with Xbox Game Studio head Matt Booty saying in a recent Hollywood Reporter interview that VR just isn’t big enough yet.

“We have 10 games that have achieved over 10 million players life-to-date, which is a pretty big accomplishment, but that’s the kind of scale that we need to see success for the game and it’s just, it’s not quite there yet with AR, VR,” Booty told the Hollywood Reporter.

So, while we’re no closer to knowing when Microsoft will decide it’s the right time to enter into VR (or MR for that matter), the company is well equipped and funded to break the Zune curse. Whenever Microsoft chooses to compete in consumer XR, any potential failure can’t be blamed on the lack of resources. The company now boasts a vast collection of game studios it can weaponize, which includes the entire Zenimax family of studios, including Bethesda, Arkane Studios, id Software, MachineGames, Tango Gameworks, and ZeniMax Online Studios. Provided the contentious Activision Blizzard acquisition goes through, Microsoft will also own World of Warcraft, Call of Duty, and Diablo franchises. That untapped library of IP and developer talents could make whatever Microsoft decides to bring to the XR table a serious contender.

Just the same, if the megalithic Microsoft can’t overcome what must be a massive internal friction to put out something focused, timely and well-supported, whatever it makes might as well be Zune.

Microsoft’s Meandering XR Strategy Could Lead to Another Zune Moment Read More »

a-farewell-to-altspacevr

A Farewell to AltspaceVR

The social VR community was shocked and devastated to learn that AltspaceVR is shutting its doors. While it’s in the nature of emerging technology applications to come and go, many with few tears shed by fewer remaining users, this platform seems to have been taken from us in the prime of its life leaving many wondering where to go next.

The Sun Goin’ Down on AltspaceVR

On January 20, a blog post titled “AltspaceVR to Sunset the Platform on March 10, 2023” appeared at the top of the company’s homepage. An email was also sent to users.

“When AltspaceVR first launched, our vision was to create a place where people from around the world could connect and socialize in real time,” the team wrote. “It was a bold vision, and with the help of our passionate community, the platform became a place where users made lifelong memories, formed cherished friendships, found love — and even married in IRL (in real life).” 

AltspaceVR

Much of the post waxes nostalgic about the platform, which launched in 2015 and was purchased by Microsoft in 2017. The post also encouraged “the many creators and developers who are part of the AltspaceVR community to host final events and download their content.”

“The decision has not been an easy one as this is a platform many have come to love, providing a place for people to explore their identities, express themselves, and find community,” wrote the team. “It has been a privilege to help unlock passions among users.”

Why, Microsoft? Why?

The team writes that they are closing AltspaceVR to “shift our focus to support immersive experiences powered by Microsoft Mesh.” Microsoft Mesh is the company’s mixed reality platform that was announced from within AltspaceVR during Microsoft Ignite 2021. The event, featuring Alex Kipman and James Cameron, looked at the platform as a tool for humanity.

“A dream you dream alone is just a dream. A dream we dream together is called reality,” Kipman said at the time, quoting John Lennon. “We tend to think of reality and dreams as separate. But, are they?”

Since then, Microsoft has focused on Mesh as more of an enterprise tool than a collaborative dream maker. At Microsoft Ignite 2022, CEO Satya Nadella announced that Mesh would be integrating with Microsoft Teams. Nadella also presented integrations between Microsoft Teams (presumably including Mesh) with Meta’s Horizon Workrooms at Meta Connect 2022.

“We knew early on that we wanted this to be a great place to get work done and with Microsoft, we can make that happen,” Meta CEO Mark Zuckerberg said at the event.

What About Us?

Shutting down AltspaceVR to focus on an enterprise platform is a strange play seeing as virtually none of the people using it were using it for enterprise. The always-full events schedule included comedy shows, community events, support groups and spiritual meetings, and musical performances. Where will they go?

Some of the events that you may know and love from AltspaceVR are already happening across multiple immersive platforms. For example, the live VR comedy show Failed to Render began in AltspaceVR but also has a home in Horizon Worlds and VRChat. Similarly, the Polys Awards takes place in AltspaceVR but also takes place in Mozilla Hubs, ENGAGE, and others.

But, what about those experiences that are only on AltspaceVR? Like BRCvr’s Burning Man experiences? An email from the organization said that they have plans for future events in another platform, but are respectfully waiting for the book to close forever on this chapter.

“Leaving AltspaceVR is difficult for all of us who have loved building this incredible community,” BRCvr co-founder Athena Demos said in the email. “Before we announce where we plan to continue our virtual Burning Man experiences, we want to honor the incredible friendships and creative partnerships we have forged on AltspaceVR.”

Kavya Pearlman, the CEO of XR Safety Initiative – which has been hosting events, such as Metaverse Safety Week, on the platform for years – said in a tweet that she was in talks with the group’s technical partner about moving to other platforms. Nothing official has been announced.

Yep , that’s quite a sad news .. just spoke to @ChickenWaffleVR about moving @MetaSafetyWeek to alternate platforms.

I wonder why @Microsoft bought @AltspaceVR in the first place , if it was only to sunset it later on.

So sorry for the team & everyone impacted.

— Kavya Pearlman (@KavyaPearlman) January 20, 2023

The King Is Dead. Long Live the King.

AltspaceVR had no enemies but it had many competitors. When the eulogy of a blog post went live on Twitter, representatives from a number of immersive platforms spoke at the wake.

We have some sad news, Altspacers. #AltspaceVR is shutting down on March 10th.

Though we hate saying goodbye, we also feel such pride and gratitude for all the magic that happened here. ✨

Thanks for joining us on this epic adventure. #socialvr https://t.co/peCwpaaBl3

— AltspaceVR (@AltspaceVR) January 20, 2023

There was no gloating at the grave, but tweets from Somnium Space, Spatial, and Mona invited displaced worldbuilders to take their events and spaces along. While this may be an option for events and assets, it’s not a meaningful option for users.

As mentioned in the blog post, users can download their data from the platform. However, there isn’t much that can be done with it. Photographs taken within the platform can be cherished but avatars can’t be transferred. It’s possible to download profile data from users that you met on the platform, but that’s not likely to help you connect with them on other platforms.

And, what are those platforms likely to be? Where will we meet next? A couple of solutions have already been named.

Where Will We Go?

VRChat is a proven and robust platform, but isn’t necessarily friendly towards new users, particularly when it comes to avatar creation. It has more tools and options than AltspaceVR but that can make it feel unwieldy. Somnium Space is in a similar category.

Spatial is a strong contender. The lightweight and easy-to-use platform runs in-browser, which is another strong bonus. Integration with Ready Player Me also means that creating an avatar is easy and bringing one with you if you already have one is even easier. Mona is in a similar category.

Mozilla Hubs has been putting in a lot of work, but they charge for that. With the new $20/month subscription price, many casual users won’t be signing on anymore.

ENGAGE is a solid free option, though it does require an app download. The same goes for Horizon – particularly if Meta makes good on its promise to make the platform available on hardware other than Meta headsets.

VIVE has also been building out its immersive offerings, but these also tend to be clunkier than many users will want. Virbela has also shown itself a capable, robust, and user-friendly platform, though a free app download is required.

The End of an Era

This was the first immersive world I ever entered. The fact that you don’t need a headset to enter the free and easy-to-use platform made it an unparalleled introduction to VR.

From before and after I got my first headsets, I have many memories from this platform, including the first time that I really felt like I had made eye contact with someone across the country. After years in the industry, there were still times when I would put on a headset just to shoot hoops outside of my VR house. AltspaceVR will be missed.

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