microsoft

openai-weighs-“nuclear-option”-of-antitrust-complaint-against-microsoft

OpenAI weighs “nuclear option” of antitrust complaint against Microsoft

OpenAI executives have discussed filing an antitrust complaint with US regulators against Microsoft, the company’s largest investor, The Wall Street Journal reported Monday, marking a dramatic escalation in tensions between the two long-term AI partners. OpenAI, which develops ChatGPT, has reportedly considered seeking a federal regulatory review of the terms of its contract with Microsoft for potential antitrust law violations, according to people familiar with the matter.

The potential antitrust complaint would likely argue that Microsoft is using its dominant position in cloud services and contractual leverage to suppress competition, according to insiders who described it as a “nuclear option,” the WSJ reports.

The move could unravel one of the most important business partnerships in the AI industry—a relationship that started with a $1 billion investment by Microsoft in 2019 and has grown to include billions more in funding, along with Microsoft’s exclusive rights to host OpenAI models on its Azure cloud platform.

The friction centers on OpenAI’s efforts to transition from its current nonprofit structure into a public benefit corporation, a conversion that needs Microsoft’s approval to complete. The two companies have not been able to agree on details after months of negotiations, sources told Reuters. OpenAI’s existing for-profit arm would become a Delaware-based public benefit corporation under the proposed restructuring.

The companies are discussing revising the terms of Microsoft’s investment, including the future equity stake it will hold in OpenAI. According to The Information, OpenAI wants Microsoft to hold a 33 percent stake in a restructured unit in exchange for foregoing rights to future profits. The AI company also wants to modify existing clauses that give Microsoft exclusive rights to host OpenAI models in its cloud.

OpenAI weighs “nuclear option” of antitrust complaint against Microsoft Read More »

microsoft-dives-into-the-handheld-gaming-pc-wars-with-the-asus-rog-xbox-ally

Microsoft dives into the handheld gaming PC wars with the Asus ROG Xbox Ally

Back in March, we outlined six features we wanted to see on what was then just a rumored Xbox-branded, Windows-powered handheld gaming device. Today, Microsoft’s announcement of the Asus ROG Xbox Ally hardware line looks like it fulfills almost all of our wishes for Microsoft’s biggest foray into portable gaming yet.

The Windows-11-powered Xbox Ally devices promise access to “all of the games available on Windows,” including “games from Xbox, Game Pass, Battle.net, and other leading PC storefronts [read: Steam, Epic Games Store, Ubisoft Connect, etc].” But instead of having to install and boot up those games through the stock Windows interface, as you often do on handhelds like the original ROG Ally line, all these games will be available through what Microsoft is calling an “aggregated gaming library.”

Asus and Microsoft are stressing how that integrated experience can be used with games across multiple different Windows-based launchers, promising “access to games you can’t get elsewhere.” That could be seen as a subtle dig at SteamOS-powered devices like the Steam Deck, which can have significant trouble with certain titles that don’t play well with Steam and/or Linux for one reason or another. Microsoft also highlights how support apps like Discord, Twitch, and downloadable game mods will also be directly available via the Xbox Ally’s Windows backbone.

And while the Xbox Ally devices run Windows 11, they will boot to what Microsoft is calling the “Xbox Experience for Handheld,” a bespoke full-screen interface that hides the nitty-gritty of the Windows desktop by default. That gaming-focused interface will “minimize background activity and defer non-essential tasks,” meaning “more [and] higher framerates” for the games themselves, Microsoft says. A rhombus-shaped Xbox button located near the left stick will also launch an Xbox Game Bar overlay with quick access to functions like settings, performance metrics, and fast switching between titles. Microsoft also says it is working on a “Deck Verified”-style program for identifying Windows titles that “have been optimized for handhelds.”

Microsoft dives into the handheld gaming PC wars with the Asus ROG Xbox Ally Read More »

anthropic-releases-custom-ai-chatbot-for-classified-spy-work

Anthropic releases custom AI chatbot for classified spy work

On Thursday, Anthropic unveiled specialized AI models designed for US national security customers. The company released “Claude Gov” models that were built in response to direct feedback from government clients to handle operations such as strategic planning, intelligence analysis, and operational support. The custom models reportedly already serve US national security agencies, with access restricted to those working in classified environments.

The Claude Gov models differ from Anthropic’s consumer and enterprise offerings, also called Claude, in several ways. They reportedly handle classified material, “refuse less” when engaging with classified information, and are customized to handle intelligence and defense documents. The models also feature what Anthropic calls “enhanced proficiency” in languages and dialects critical to national security operations.

Anthropic says the new models underwent the same “safety testing” as all Claude models. The company has been pursuing government contracts as it seeks reliable revenue sources, partnering with Palantir and Amazon Web Services in November to sell AI tools to defense customers.

Anthropic is not the first company to offer specialized chatbot services for intelligence agencies. In 2024, Microsoft launched an isolated version of OpenAI’s GPT-4 for the US intelligence community after 18 months of work. That system, which operated on a special government-only network without Internet access, became available to about 10,000 individuals in the intelligence community for testing and answering questions.

Anthropic releases custom AI chatbot for classified spy work Read More »

amazon-fire-sticks-enable-“billions-of-dollars”-worth-of-streaming-piracy

Amazon Fire Sticks enable “billions of dollars” worth of streaming piracy

Amazon Fire Sticks are enabling “billions of dollars” worth of streaming piracy, according to a report today from Enders Analysis, a media, entertainment, and telecommunications research firm. Technologies from other media conglomerates, Microsoft, Google, and Facebook, are also enabling what the report’s authors deem an “industrial scale of theft.”

The report, “Video piracy: Big tech is clearly unwilling to address the problem,” focuses on the European market but highlights the global growth of piracy of streaming services as they increasingly acquire rights to live programs, like sporting events.

Per the BBC, the report points to the availability of multiple, simultaneous illegal streams for big events that draw tens of thousands of pirate viewers.

Enders’ report places some blame on Facebook for showing advertisements for access to illegal streams, as well as Google and Microsoft for the alleged “continued depreciation” of their digital rights management (DRM) systems, Widevine and PlayReady, respectively. Ars Technica reached out to Facebook, Google, and Microsoft for comment but didn’t receive a response before publication.

The report echoes complaints shared throughout the industry, including by the world’s largest European soccer streamer, DAZN. Streaming piracy is “almost a crisis for the sports rights industry,” DAZN’s head of global rights, Tom Burrows, said at The Financial Times’ Business of Football Summit in February. At the same event, Nick Herm, COO of Comcast-owned European telecommunication firm Sky Group, estimated that piracy was costing his company “hundreds of millions of dollars” in revenue. At the time, Enders co-founder Claire Enders said that the pirating of sporting events accounts for “about 50 percent of most markets.”

Jailbroken Fire Sticks

Friday’s Enders report named Fire Sticks as a significant contributor to streaming piracy, calling the hardware a “piracy enabler.”

Enders’ report pointed to security risks that pirate viewers face, including providing credit card information and email addresses to unknown entities, which can make people vulnerable to phishing and malware. However, reports of phishing and malware stemming from streaming piracy, which occurs through various methods besides a Fire TV Stick, seem to be rather limited.

Amazon Fire Sticks enable “billions of dollars” worth of streaming piracy Read More »

musk’s-doge-used-meta’s-llama-2—not-grok—for-gov’t-slashing,-report-says

Musk’s DOGE used Meta’s Llama 2—not Grok—for gov’t slashing, report says

Why didn’t DOGE use Grok?

It seems that Grok, Musk’s AI model, wasn’t available for DOGE’s task because it was only available as a proprietary model in January. Moving forward, DOGE may rely more frequently on Grok, Wired reported, as Microsoft announced it would start hosting xAI’s Grok 3 models in its Azure AI Foundry this week, The Verge reported, which opens the models up for more uses.

In their letter, lawmakers urged Vought to investigate Musk’s conflicts of interest, while warning of potential data breaches and declaring that AI, as DOGE had used it, was not ready for government.

“Without proper protections, feeding sensitive data into an AI system puts it into the possession of a system’s operator—a massive breach of public and employee trust and an increase in cybersecurity risks surrounding that data,” lawmakers argued. “Generative AI models also frequently make errors and show significant biases—the technology simply is not ready for use in high-risk decision-making without proper vetting, transparency, oversight, and guardrails in place.”

Although Wired’s report seems to confirm that DOGE did not send sensitive data from the “Fork in the Road” emails to an external source, lawmakers want much more vetting of AI systems to deter “the risk of sharing personally identifiable or otherwise sensitive information with the AI model deployers.”

A seeming fear is that Musk may start using his own models more, benefiting from government data his competitors cannot access, while potentially putting that data at risk of a breach. They’re hoping that DOGE will be forced to unplug all its AI systems, but Vought seems more aligned with DOGE, writing in his AI guidance for federal use that “agencies must remove barriers to innovation and provide the best value for the taxpayer.”

“While we support the federal government integrating new, approved AI technologies that can improve efficiency or efficacy, we cannot sacrifice security, privacy, and appropriate use standards when interacting with federal data,” their letter said. “We also cannot condone use of AI systems, often known for hallucinations and bias, in decisions regarding termination of federal employment or federal funding without sufficient transparency and oversight of those models—the risk of losing talent and critical research because of flawed technology or flawed uses of such technology is simply too high.”

Musk’s DOGE used Meta’s Llama 2—not Grok—for gov’t slashing, report says Read More »

desktop-survivors-98-is-more-than-just-a-retro-windows-nostalgia-trip

Desktop Survivors 98 is more than just a retro Windows nostalgia trip

That blue bar sure does take me back…

That blue bar sure does take me back…

If that kind of nostalgia were all there was to Desktop Survivors 98, it would probably not be worth much more than a 15-minute demo. But the underlying game actually takes the developing Survivors-like genre in some interesting directions.

As usual for the genre, the gameplay here centers around navigating through throngs of encroaching enemies (and their projectiles), all while herding those enemies together so your auto-firing weapons can take them out. Defeated enemies drop gems that are crucial to gaining new weapons and powers that also lean heavily on nostalgic computing gags—I particularly liked one weapon based on the “flower box” screensaver and another based on the “bouncing cards” at the end of a successful Solitaire game.

Theming aside, the main element that sets Desktop Survivors apart from its predecessors in the genre is the mouse-based controls. Your old-school mouse pointer is your character here, meaning you get to precisely dodge and dart around the screen with all the speed and accuracy you’d expect from such a flexible input device.

Once you move through these dungeons with a mouse, you won’t want to go back to a joystick.

Once you move through these dungeons with a mouse, you won’t want to go back to a joystick.

While there is a serviceable Steam Deck mode designed for analog stick-based movements, it’s a hard control paradigm to return to after experiencing the freedom and speed of mouse movements. Decades of mouse use have likely been preparing you for just this moment, training you to weave your pointer through the tight, quickly closing spaces between enemies without really having to think about it.

More of the same?

Desktop Survivors also sets itself apart by taking place on a series of single-screen battlefields rather than smoothly scrolling maps. These rooms don’t feature any significant obstacles or walls to block your movements, either, making each enemy room play kind of similarly to the ones you’ve seen before it. This also makes it a little easier to avoid many enemies simply by scrubbing your mouse pointer in a wide circle, causing the enemy horde to bunch up in comical blobs.

Desktop Survivors 98 is more than just a retro Windows nostalgia trip Read More »

in-35-years,-notepad.exe-has-gone-from-“barely-maintained”-to-“it-writes-for-you”

In 3.5 years, Notepad.exe has gone from “barely maintained” to “it writes for you”

By late 2021, major updates for Windows’ built-in Notepad text editor had been so rare for so long that a gentle redesign and a handful of new settings were rated as a major update. New updates have become much more common since then, but like the rest of Windows, recent additions have been overwhelmingly weighted in the direction of generative AI.

In November, Microsoft began testing an update that allowed users to rewrite or summarize text in Notepad using generative AI. Another preview update today takes it one step further, allowing you to write AI-generated text from scratch with basic instructions (the feature is called Write, to differentiate it from the earlier Rewrite).

Like Rewrite and Summarize, Write requires users to be signed into a Microsoft Account, because using it requires you to use your monthly allotment of Microsoft’s AI credits. Per this support page, users without a paid Microsoft 365 subscription get 15 credits per month. Subscribers with Personal and Family subscriptions get 60 credits per month instead.

Microsoft notes that all AI features in Notepad can be disabled in the app’s settings, and obviously, they won’t be available if you use a local account instead of a Microsoft Account.

Microsoft is also releasing preview updates for Paint and Snipping Tool, two other bedrock Windows apps that hadn’t seen much by way of major updates before the Windows 11 era. Paint’s features are also mostly AI-related, including a “sticker generator” and an AI-powered smart select tool “to help you isolate and edit individual elements in your image.” A new “welcome experience” screen that appears the first time you launch the app will walk you through the (again, mostly AI-related) new features Microsoft has added to Paint in the last couple of years.

In 3.5 years, Notepad.exe has gone from “barely maintained” to “it writes for you” Read More »

why-console-makers-can-legally-brick-your-game-console

Why console makers can legally brick your game console

Consoles like these may get banned from Nintendo’s online services, but they tend to still work offline.

Consoles like these may get banned from Nintendo’s online services, but they tend to still work offline. Credit: Kate Temkin / ReSwitched

“Unfortunately, ‘bricking’ personal devices to limit users’ rights and control their behavior is nothing new,” Electronic Frontier Foundation attorney Victoria Noble told Ars Technica. “It would likely take selective enforcement to rise to a problematic level [in court],” attorney Richard Hoeg said.

Last year, a collection of 17 consumer groups urged the Federal Trade Commission to take a look at the way companies use the so-called practice of “software tethering” to control a device’s hardware features after purchase. Thus far, though, the federal consumer watchdog has shown little interest in enforcing complaints against companies that do so.

“Companies should not use EULAs to strip people of rights that we normally associate with ownership, like the right to tinker with or modify their own personal devices,” Noble told Ars. “[Console] owners deserve the right to make otherwise legal modifications to their own devices without fear that a company will punish them by remotely bricking their [systems].”

The court of public opinion

In the end, these kinds of draconian bricking clauses may be doing their job even if the console makers involved don’t invoke them. “In practice, I expect this kind of thing is more about scaring people away from jailbreaking and modifying their systems and that Nintendo is unlikely to go about bricking large volumes of devices, even if they technically have the right to,” Loiterman said.

“Just because they put a remedy in the EULA doesn’t mean they will certainly use it either,” attorney Mark Methenitis said. “My suspicion is this is to go after the people who eventually succeeded in jailbreaking the original Switch and try to prevent that for the Switch 2.”

The threat of public backlash could also hold the console makers back from limiting the offline functionality of any hacked consoles. After citing public scrutiny that companies like Tesla, Keurig, and John Deere faced for limiting hardware via software updates, Methenitis said that he “would imagine Nintendo would suffer similar bad publicity if they push things too far.”

That said, legal capacities can sometimes tend to invite their own use. “If the ability is there, someone will want to ‘see how it goes.'” Hoeg said.

Why console makers can legally brick your game console Read More »

“microsoft-has-simply-given-us-no-other-option,”-signal-says-as-it-blocks-windows-recall

“Microsoft has simply given us no other option,” Signal says as it blocks Windows Recall

But the changes go only so far in limiting the risks Recall poses. As I pointed out, when Recall is turned on, it indexes Zoom meetings, emails, photos, medical conditions, and—yes—Signal conversations, not just with the user, but anyone interacting with that user, without their knowledge or consent.

Researcher Kevin Beaumont performed his own deep-dive analysis that also found that some of the new controls were lacking. For instance, Recall continued to screenshot his payment card details. It also decrypted the database with a simple fingerprint scan or PIN. And it’s unclear whether the type of sophisticated malware that routinely infects consumer and enterprise Windows users will be able to decrypt encrypted database contents.

And as Cunningham also noted, Beaumont found that Microsoft still provided no means for developers to prevent content displayed in their apps from being indexed. That left Signal developers at a disadvantage, so they had to get creative.

With no API for blocking Recall in the Windows Desktop version, Signal is instead invoking an API Microsoft provides for protecting copyrighted material. App developers can turn on the DRM setting to prevent Windows from taking screenshots of copyrighted content displayed in the app. Signal is now repurposing the API to add an extra layer of privacy.

“We hope that the AI teams building systems like Recall will think through these implications more carefully in the future,” Signal wrote Wednesday. “Apps like Signal shouldn’t have to implement ‘one weird trick’ in order to maintain the privacy and integrity of their services without proper developer tools. People who care about privacy shouldn’t be forced to sacrifice accessibility upon the altar of AI aspirations either.”

Signal’s move will lessen the chances of Recall permanently indexing private messages, but it also has its limits. The measure only provides protection when all parties to a chat—at least those using the Windows Desktop version—haven’t changed the default settings.

Microsoft officials didn’t immediately respond to an email asking why Windows provides developers with no granular control over Recall and whether the company has plans to add any.

“Microsoft has simply given us no other option,” Signal says as it blocks Windows Recall Read More »

microsoft’s-surface-lineup-reportedly-losing-another-of-its-most-interesting-designs

Microsoft’s Surface lineup reportedly losing another of its most interesting designs

Like the Surface Studio desktop, the Laptop Studio’s odd and innovative exterior was rendered less exciting by a high price and relatively underpowered interior. Before discounts, the Laptop Studio 2 starts at around $2,400 for a basic configuration with a 13th-generation Core i7 processor, 16GB of RAM, and 512GB of storage—integrated graphics and a fully loaded version with 64GB of RAM, a 2TB SSD, and a GeForce RTX 4060 GPU would normally run you over $4,300.

Though experimental Surface designs like the Book and Studio rarely delivered great value for the money, they were at least unique attempts at new kinds of PCs with extra features for designers, artists, and anyone else who could benefit from a big stylus-compatible touchscreen. Microsoft’s most influential PC design remains the Surface Pro itself, one of the few tablet PC design templates to outlast the Windows 8 era. It makes sense for Microsoft (or any PC company) to play it safe with established designs, but it does make the PC industry just a little less interesting.

Microsoft’s Surface lineup reportedly losing another of its most interesting designs Read More »

office-apps-on-windows-10-are-no-longer-tied-to-its-october-2025-end-of-support-date

Office apps on Windows 10 are no longer tied to its October 2025 end-of-support date

For most users, Windows 10 will stop receiving security updates and other official support from Microsoft on October 14, 2025, about five months from today. Until recently, Microsoft had also said that users running the Microsoft Office apps on Windows 10 would also lose support on that date, whether they were using the continually updated Microsoft 365 versions of those apps or the buy-once-own-forever versions included in Office 2021 or Office 2024.

Microsoft has recently tweaked this policy, however (as seen by The Verge). Now, Windows 10 users of the Microsoft 365 apps will still be eligible to receive software updates and support through October of 2028, “in the interest of maintaining your security while you upgrade to Windows 11.” Microsoft is taking a similar approach to Windows Defender malware definitions, which will be offered to Windows 10 users “through at least October 2028.”

The policy is a change from a few months ago, when Microsoft insisted that Office apps running on Windows 10 would become officially unsupported on October 14. The perpetually licensed versions of Office will be supported in accordance with Microsoft’s “Fixed Lifecycle Policy,” which guarantees support and security updates for a fixed number of years after a software product’s initial release. For Office 2021, this means Windows 10 users will get support through October of 2026; for Office 2024, this should extend to October of 2029.

Office apps on Windows 10 are no longer tied to its October 2025 end-of-support date Read More »

microsoft-effectively-raises-high-end-surface-prices-by-discontinuing-base-models

Microsoft effectively raises high-end Surface prices by discontinuing base models

While the Surface Pro and Laptop get price hikes that aren’t technically price hikes, some Surface accessories have had their prices directly increased. The Surface USB-C Travel Hub is now $120 instead of $100; the Surface Arc Mouse is now $90 instead of $80, and a handful of replacement parts are more expensive now than they were, according to recent Internet Wayback Machine snapshots. Generally, Surface Pen accessories and Surface Pro keyboard covers are the same price as they were before.

Microsoft also raised prices on its Xbox consoles earlier this month while warning customers that game prices could go up to $80 for some releases later this year.

If you’re quick, you can still find the 256GB Surface devices in stock at third-party retailers. For example, Best Buy will sell you a Surface Laptop 7 with a 256GB SSD for $799, $100 less than the price of the 13-inch Surface Laptop that Microsoft just announced. We’d expect these retail listings to vanish over the next few days or weeks, and we wouldn’t expect them to come back in stock once they’re gone.

Increased import tariffs imposed by the Trump administration could explain at least some of these price increases. Though PCs and smartphones are currently exempted from the worst of them (at least for now), global supply chains and shipping costs are complex enough that they could still be increasing Microsoft’s costs indirectly. For the Surface Pro and Surface Laptop, the decision to discontinue the old 256GB models also seems driven by a desire to make the new 12-inch Pro and 13-inch Laptop look like better deals than they did earlier this week. Raising the base price does help clarify the lineup; it just does so at the expense of the consumer.

Microsoft effectively raises high-end Surface prices by discontinuing base models Read More »