Microsoft’s recent financial filings reveal that OpenAI incurred a significant net loss during the quarter ending September 30th. Based on Microsoft’s reported $3.1 billion loss from its OpenAI investment, calculated through equity accounting, it is estimated that OpenAI’s loss was around $11.5 billion, with potential for an even higher loss exceeding $12 billion. This calculation is derived from Microsoft’s 27% stake in OpenAI, though a previous 32.5% stake is also reported. While this loss is substantial, the article highlights the financial capacity of Big Tech, specifically Microsoft, to absorb such losses within the current AI landscape.
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The International Criminal Court (ICC) has decided to transition its internal work environment from Microsoft Office to Open Desk, a European open-source alternative. This decision follows increasing concerns about public bodies’ reliance on US tech companies, especially given the ICC’s tense relationship with the US government. The move is also in response to reported issues, such as the cancellation of the ICC chief prosecutor’s email account by Microsoft. Open Desk is developed by the German Centre for Digital Sovereignty of the Public Administration (Zendis), which is part of an EU initiative focused on developing sovereign digital infrastructure.
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As Windows 10’s end-of-support date rapidly approaches, Microsoft is making significant changes to its Extended Security Updates (ESU) program in the European Economic Area (EEA). Due to pressure from the Euroconsumers group, Microsoft will offer ESU free of charge to EEA users without requiring Windows Backup. This removes the previous requirement for users to enable Windows Backup, which involved a Microsoft Account and OneDrive. However, users in the EEA will still need to sign into their Microsoft account at least once every 60 days to continue receiving ESU updates, while users outside of the EEA will still need to either enable Windows Backup or pay for the updates.
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The investigation by The Guardian revealed Microsoft’s Azure cloud platform was used by the Israeli military’s Unit 8200 to conduct mass surveillance of Palestinian civilians. This was done in violation of Microsoft’s terms of service. Consequently, Microsoft has ceased and disabled certain services to Unit 8200, including cloud storage and AI tools, prompted by the revelations in the investigation and pressure from employees and investors. Microsoft’s Vice-chair and President, Brad Smith, informed staff of the decision, stating the company does not facilitate mass surveillance of civilians.
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Dozens of Microsoft employees recently occupied the company’s east campus in Redmond, Washington, protesting the alleged use of Microsoft software by the Israeli military in Gaza and for surveillance of Palestinians. The “No Azure for Genocide” group organized the demonstration, demanding Microsoft divest from Israel and accusing the company of enabling genocide. The protest was prompted by a lack of response from Microsoft and the recent revelation that the company’s Azure software is allegedly used to store mass surveillance data collected from Palestinians’ phone calls. After two hours of protest, the demonstrators were told to leave, with police threatening arrest for trespassing.
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After 25 years, Microsoft has closed its operations in Pakistan, citing a global restructuring towards a cloud-based, partner-led model. While no formal announcement was made, the decision is attributed to Pakistan’s economic instability and evolving political climate. Although existing services and customer agreements will be unaffected, the tech giant will continue serving Pakistani customers through regional offices and authorized resellers. This move raises concerns about the impact on Pakistan’s digital advancement, particularly given Microsoft’s past contributions to the country’s technological development and digital initiatives.
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Microsoft is replacing the iconic “Blue Screen of Death” with a “Black Screen of Death” on its Windows operating system. This change, announced in a recent blog post, streamlines the user experience during unexpected restarts. The new error message will feature condensed text against a black background, offering a percentage of the restart process. This simplified interface will be available later this summer on Windows 11 (version 24H2) devices.
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User feedback revealed significant issues with video ad playback. Common problems included slow loading, complete failure to load, freezing, and excessively loud audio. These technical difficulties negatively impacted the user experience. A range of problems were reported, highlighting the need for improved ad delivery. Further investigation into these reported issues is warranted.
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Copenhagen and Aarhus municipalities are phasing out Microsoft IT systems due to escalating costs, concerns about reliance on a near-monopoly, and geopolitical anxieties. Both cities cited potential disruptions stemming from strained US relations as a key factor in their decision. Aarhus has already partially transitioned to a German provider, realizing significant cost savings despite some employee dissatisfaction. Copenhagen plans a similar shift to a European alternative, aiming to reduce dependence on a single, US-based vendor.
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Microsoft is fully withdrawing from Russia, with its subsidiary, Microsoft Rus, initiating bankruptcy proceedings in a Moscow court. This action follows a lawsuit by Gazprombank seeking repayment for allegedly unfulfilled contract obligations totaling approximately US$1.14 million. Despite a significant revenue drop since Russia’s invasion of Ukraine, Microsoft Rus reported a net profit before filing for bankruptcy. The move marks the final stage of Microsoft’s departure from the Russian market, following the closure of its 13 Russian branches earlier this year.
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John Q. Hosedrinker