Microsoft is in a unique position as AI overtakes the tech industry. It’s one of the world’s largest cloud providers and software-as-a-service companies, while also holding valuable stakes in the two biggest AI labs, OpenAI and Anthropic. Those incentives are starting to clash as Microsoft posts blockbuster financial results. The company just reported an extremely…
On an afternoon in mid-May, dozens of Microsoft engineers and their managers gathered online and in a conference room at the company’s Redmond, Washington, headquarters to discuss Project Glasswing. The tech giant was racing to fix weaknesses in its code that a new AI model known as Mythos was uncovering at an unprecedented clip. The…
Earlier this week, Bloomberg reported that Microsoft was replacing some of OpenAI’s software with its own in-house models in an effort to cut costs. Those in-house models, known as MAI, were increasingly being used to power apps like Word and Excel, the outlet noted. The story raised an increasingly common question about the two companies,…
Microsoft has announced it has cut 4,800 jobs – roughly 2.1% of its workforce – with Xbox to bear a large number of its latest layoffs. Amy Coleman, executive vice president at Microsoft, told employees in a memo that the tech giant needed to focus on areas that can deliver for customers amid a “fast-changing…
Microsoft is eliminating 4,800 jobs, representing 2.1% of its workforce, with the company’s Xbox division losing about one-fifth of its staff in the software giant’s latest effort to cut costs in the era of artificial intelligence. “The way technology is built, deployed, and used is transforming faster than at any point in my time here,”…
Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Microsoft will cut about 4,800 jobs, around 2 per cent of its workforce, as it overhauls its Xbox division, claiming the games industry is “facing the most severe hardware crisis in its history.” The $2.9tn…
On Thursday, Microsoft announced a new operating business called Microsoft Frontier company, focused on delivering successful enterprise AI deployments with Microsoft’s existing AI tools. The project will be backed by a $2.5 billion investment from Microsoft, as well as 6,000 industry and engineering experts. In a statement announcing the venture, Microsoft’s Commercial Business CEO Judson…
After a very profitable decade on Microsoft’s board, Reid Hoffman is stepping down, the company announced Thursday. Hoffman joined the board after Microsoft bought his company LinkedIn for $26.2 billion in 2016. Hoffman was on Microsoft’s board when it invested its first $1 billion into OpenAI in 2019. Hoffman was one of OpenAI’s original investors…
Microsoft shares edged up 2% on Wednesday after the software maker reported lower-than-expected capex even as earnings and revenue topped estimates. Here’s how the company did in comparison with LSEG consensus: Earnings per share: $4.27 adjusted vs. $4.06 expectedRevenue: $82.89 billion vs. $81.39 billion expected Microsoft’s revenue grew 18% year over year in the quarter,…
On Monday, Microsoft and OpenAI announced that they have, once again, renegotiated the deal binding the two companies. Despite some opinions on X that frame it as a victory for the ChatGPT maker over the Windows giant, both sides are walking away winners. Most important, the new terms solve an issue that was hanging over…
