Microsoft outage disrupts services on earnings day

Welp, Azure crashed on Microsoft's earnings day, the cloud's weakest link exposed just as AI investments hit mind-boggling numbers. And 2.5 years into the AI era, things are still moving quickly, and there are extreme opinions on both ends of the spectrum. But Paul finally found a source for a good way to evaluate AI and figure out where it works and where it does not. It came from an unexpected place.

Windows 11

• Week D arrives with a massive Preview Update for 24H2 and 25H2 - including the new Start menu, finally
• Copy & Search, Voice typing improvements, Proactive Memory Diagnostics, more in Dev and Beta
• Copilot Vision in Copilot app updated with text input and output across all Insider channels
• Intel earnings are great unless you understand how numbers work

Microsoft 365

• Australia regulator sues Microsoft over misleading Microsoft 365 consumer pricing
• Copilot is being integrated into the People, Files, and Calendar companion apps for Microsoft 365 commercial
• On the day Microsoft will report earnings, Microsoft 365 and Azure went down. Hilarious!

AI

• OpenAI completes its transition to a for-profit owned by a non-profit
• Microsoft's stake is 27 percent. A lot has changed in the Microsoft/OpenAI partnership agreement
• WSJ finally calls out Microsoft for its lack of financial reporting transparency. Paul's been complaining about that for over a decade - Big Tech has became a shell game. These companies are managing money they don't even have and actual products and services and "real" value be damned
• Big Copilot feature dump for consumers with a human touch: Mico, Copilot Groups, memory improvements, connectors, Proactive Actions in preview, Copilot for Health, Copilot in Edge improvements, and Copilot in Windows updates from last week
• Microsoft 365 Copilot is getting App Builder and Workflow agents
• GitHub Copilot to support third-party AI agents
• Grammarly rebrands as Superhuman

Xbox and gaming

• Credible report claims Microsoft requires Xbox/Microsoft Gaming to deliver 30 percent profit margin
• That is impossible and this is clearly coming from Amy Hood and has led to the ensh*ttification of Xbox as a platform
• As Microsoft launches first gaming handhelds, all anyone wants to talk about is the next-generation Xbox console. It started with Sarah Bond last week - "very premium" console with "curated" experience
• Phil Spencer discusses it this week, who implied Windows at the heart of console
• The rumor mill churns up - Will be Windows, as we've said, will drop multiplayer paywall that debuted in 2002
• Now Satya Nadella is commenting on the next console, confirms publisher focus for this business
• Halo: Campaign Evolved is coming in 2026, new features, new Unreal Engine graphics, new PS5 compatibility
• Also, The Outer Worlds 2 is now available. Yes, on PS5 too
• Amazon relaunches Luna, and the new Amazon layoffs point to a new focus on casual gaming

Tips and picks

• Tip of the week: Understand where AI works and where AI is just a marketing term used to hype something that doesn't work
• App pick of the week: Tiny11 Builder
• RunAs Radio this week: AI for DBAs with Grant Fritchey
• Brown liquor pick of the week: Redbreast Dream Casks

These show notes have been truncated due to length. For the full show notes, visit https://twit.tv/shows/windows-weekly/episodes/956

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

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