Microsoft cautiously adopts Grok 4 after Hitler concerns

• Microsoft reports solid cloud earnings with Windows and Xbox also up.Microsoft’s earnings last Thursday sent its stock price soaring, to the point that it briefly became the second $4 billion company. Microsoft reported its Azure revenue, which was a first in the better-than expected earnings. Azure generated revenue of more than $75 billion during the fiscal year 2025. Xbox had a great quarter as well, with revenue from content and services up 13 percent, and gaming revenue up by 10 percent. Xbox hardware continues to struggle, however, with hardware revenue down 22 percent in the last quarter. Satya Nadella deserved his $80 billion
• . Nadella defended Microsoft’s investment in cloud computing and AI data centers earlier this year when there was much doubt about the $100 billion funding behind The Stargate Project. Nadella said at the time, “I’m happy with my $80 billion.” Microsoft will spend $30 billion next quarter on its AI infrastructure, which would total $120 billion if the spending was continued each quarter. OpenAI’s GPT-5 model is now available . Microsoft-owned GitHub leaked the news about GPT-5 a few hours early. OpenAI also teased a release today during a “LIVE5TREAM”which will take place at 10AM PT / 12PM ET. You can expect to see four new variants with “enhanced agents capabilities” and GPT-5’s ability to handle “complex coding with minimal prompting.”
• Hey Microsoft: Is it ‘Xbox PC or ‘Xbox On PC’?Microsoft used to use the terms “Xbox PC” or “Xbox on PC”but it appears that the company has settled on Xbox on PC. Microsoft is using a new marketing strategy to advertise that Xbox games are available for PC on the Microsoft Xbox app. It’s also a way to compete against Steam. The Xbox on PC branding doesn’t differ much from Xbox PC. However, it is a subtle difference that makes it seem like Xbox games are available on PC without the need for Xbox PC hardware. Microsoft will still have to convince consumers that Xbox games are better than those purchased on Steam. Microsoft’s Windows XP Crocs have no joke.Microsoft created limited edition Crocs based off the classic Bliss Wallpaper. They come with Clippy shoe charms and Recycle Bin shoe ornaments. Microsoft employees can preorder them for $80 ahead of the “worldwide launch.”
• Microsoft’s AI agent can detect malware. Microsoft has announced Project Ire is an autonomous AI agent capable of analyzing and classifying malware without assistance. Project Ire, developed by Microsoft Research and Microsoft Defender Research in conjunction with Microsoft Discovery & Quantum is the first Microsoft agent to independently create a conviction case that is “strong enough” to justify automatic blocking of an APT sample. Microsoft’s plan for AI to fix the web has already been hampered by a security flaw. Researchers have found a critical flaw in the new NLWeb Protocol that Microsoft announced at Build a few months back. NLWeb provides ChatGPT-like searching for any website or application. But security researchers have found an embarrassing flaw at the same time that Microsoft is deploying this protocol to customers like Shopify Snowlake and TripAdvisor. Anyone could read sensitive data, including system configurations and OpenAI or Gemini keys. Microsoft has patched this flaw, but refuses to issue a CVE (an industry standard for classifying vulnerability).
• Microsoft releases OpenAI’s open model on Windows OpenAI released this week a free and open GPT Model that can run on PCs. Microsoft made it easy to run the lightweight gpt – oss-20b on Windows AI Foundry. The gpt-20b model requires a PC with at least 16GB VRAM. It is optimized for code execution, tool use and can be used on a laptop or PC. Microsoft says it’s “perfect for building autonomous assistants or embedding AI into real-world workflows, even in bandwidth-constrained environments.” Microsoft is also working on a macOS release.
• Nvidia is supporting GeForce drivers for Windows 10 until October 20, 2026. Microsoft will end support for Windows 10 at the end of October, but Nvidia has committed to continue releasing new GeForce Game Ready Drivers until October 2026. Microsoft will continue to offer extended security updates for consumers in the same year, ensuring Windows 10 users receive the latest optimizations of new games and applications. Bing made Google do a dance, and then stole some traffic. Microsoft’s Satya Nadella aimed to make Google dance with a Bing AI overhaul two years ago. The goal was to steal Google’s search market share. There are many signs that Microsoft has taken Google’s search share, both in the US as well as worldwide. Comscore, Statcounter and both report that Bing’s search share has increased by a small percent on desktop. This could mean Microsoft is using tricks to make Edge and Bing the default search engine. Microsoft is ending Windows 11 SE – its ChromeOS competitor. Microsoft will end support for Windows 11 SE in 2019, five years after it first launched the operating system, which was designed to compete with Google Chromebooks. Windows 11 SE was available only on devices for schools. It was designed to prevent Microsoft’s education clients from switching to ChromeOS. Microsoft is no longer as aggressive in its pursuit of Google’s low cost laptops as it was before, as the demand for Chromebooks has waned. Rare collaborated with 8BitDo to create the first wireless Xbox controller.It was a surprise to see Xbox studio Rare team up 8BitDo and not Microsoft for a special anniversary-edition Xbox controller. The official licensed controller has a gold and a blue design with many Easter eggs to celebrate Rare’s 40th anniversary. 8BitDo has also released its first wireless Xbox controller. It uses a USB dongle instead of Microsoft’s native Xbox Wireless Protocol. Microsoft’s Black Hat hacking event is back with better rewards. Microsoft’s hacking competition, Zero Day Quest is now open for registration. Nominations will be accepted until the 4th of October . This year, there are up to $5,000,000 in bounty awards. That’s an increase of $1,000,000 from last year. Microsoft offers multiplied rewards for finding the most critical bugs in products such as Azure, Copilot and Microsoft 365. Security researchers can also qualify for a live hacking competition at Microsoft’s headquarters, which will take place in spring 2026. Microsoft is bringing Xbox Copilot to Windows Game Bar. Microsoft began testing its Xbox Copilot chatbot on iOS and Android in the beginning of this year. Now, it is bringing the chatbot into the Game Bar feature in Windows 11. You can now test a new Gaming Copilot Widget for the Game Bar if you are part of the PC Preview for Xbox features. The Gaming Copilot can answer questions by taking screenshots and knows what games you are playing. It’s the first step in Microsoft’s vision to make Xbox Copilot an AI gaming coach.
• Microsoft’s 2030 vision for Windows revolves around AI Microsoft quietly launched on its Windows channel a new YouTube video series earlier this week that discussed the company’s vision of Windows in 2030. Microsoft tries to keep its consumer Copilot out of New York Times AI copyright case. Microsoft is trying to keep
• its consumer Copilotout of the New York Times AI copyright case. Microsoft tries to argue that the current version of Copilot is not suitable for consumers The New York Times has filed a copyright lawsuitand is seeking to exclude certain information from the legal discovery process . Microsoft claims that its latest version of Copilot was not available when News Plaintiffs filed complaints and is “built on a new platform with a new system architecture”. However, Copilot still uses core OpenAI models and this is exactly what lawyers from the New York Times argue. Microsoft’s data-center strategy is still on hold . Microsoft has reportedly paused data center construction and frozen leasing in the last six months. Now, Windows 11 builds have been updated to fix the Windows Vista boot sound issue . Microsoft accidentally swapped Windows 11 startup sound with Vista in recent test versions of the operating system. This has been fixed in the Latest Canary builds for Windows 11. It’s a pity, because I prefer the Vista boot tone.

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• Tom Warren