OpenAI is in discussions with Amazon about a potential investment and an agreement to use its AI chips, CNBC confirmed on Tuesday. From the report: The details are fluid and still subject to change but the investment could exceed $10 billion, according to a person familiar with the matter who asked not to be named because the talks are confidential. The discussions come after OpenAI completed a restructuring in October and formally outlined the details of its partnership with Microsoft, giving it more freedom to raise capital and partner with companies across the broader AI ecosystem.

Microsoft has invested more than $13 billion in OpenAI and backed the company since 2019, but it no longer has a right of first refusal to be OpenAI's compute provider, according to an October release. OpenAI can now also develop some products with third parties. Amazon has invested at least $8 billion into OpenAI rival Anthropic, but the e-commerce giant could be looking to expand its exposure to the booming generative AI market. Microsoft has taken a similar step and announced last month that it will invest up to $5 billion into Anthropic, while Nvidia will invest up to $10 billion in the startup.

U.S. senators are probing whether Big Tech data centers are driving up local electricity bills by socializing grid upgrade costs onto residents. Some of the tactics they're using include NDAs, shell companies, and lobbying. Ars Technica reports: In letters (PDF) to seven AI firms, Senators Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.), and Richard Blumenthal (D-Conn.) cited a study estimating that "electricity prices have increased by as much as 267 percent in the past five years" in "areas located near significant data center activity." Prices increase, senators noted, when utility companies build out extra infrastructure to meet data centers' energy demands -- which can amount to one customer suddenly consuming as much power as an entire city. They also increase when demand for local power outweighs supply. In some cases, residents are blindsided by higher bills, not even realizing a data center project was approved, because tech companies seem intent on dodging backlash and frequently do not allow terms of deals to be publicly disclosed.

AI firms "ask public officials to sign non-disclosure agreements (NDAs) preventing them from sharing information with their constituents, operate through what appear to be shell companies to mask the real owner of the data center, and require that landowners sign NDAs as part of the land sale while telling them only that a 'Fortune 100 company' is planning an 'industrial development' seemingly in an attempt to hide the very existence of the data center," senators wrote. States like Virginia with the highest concentration of data centers could see average electricity prices increase by another 25 percent by 2030, senators noted. But price increases aren't limited to the states allegedly striking shady deals with tech companies and greenlighting data center projects, they said. "Interconnected and interstate power grids can lead to a data center built in one state raising costs for residents of a neighboring state," senators reported.

Under fire for supposedly only pretending to care about keeping neighbors' costs low were Amazon, Google, Meta, Microsoft, Equinix, Digital Realty, and CoreWeave. Senators accused firms of paying "lip service," claiming that they would do everything in their power to avoid increasing residential electricity costs, while actively lobbying to pass billions in costs on to their neighbors. [...] Particularly problematic, senators emphasized, were reports that tech firms were getting discounts on energy costs as utility companies competed for their business, while prices went up for their neighbors.

An anonymous reader quotes a report from Ars Technica: Microsoft is killing off an obsolete and vulnerable encryption cipher that Windows has supported by default for 26 years following more than a decade of devastating hacks that exploited it and recently faced blistering criticism from a prominent US senator. When the software maker rolled out Active Directory in 2000, it made RC4 a sole means of securing the Windows component, which administrators use to configure and provision fellow administrator and user accounts inside large organizations. RC4, short for Rivist Cipher 4, is a nod to mathematician and cryptographer Ron Rivest of RSA Security, who developed the stream cipher in 1987. Within days of the trade-secret-protected algorithm being leaked in 1994, a researcher demonstrated a cryptographic attack that significantly weakened the security it had been believed to provide. Despite the known susceptibility, RC4 remained a staple in encryption protocols, including SSL and its successor TLS, until about a decade ago. [...]

Last week, Microsoft said it was finally deprecating RC4 and cited its susceptibility to Kerberoasting, the form of attack, known since 2014, that was the root cause of the initial intrusion into Ascension's network. "By mid-2026, we will be updating domain controller defaults for the Kerberos Key Distribution Center (KDC) on Windows Server 2008 and later to only allow AES-SHA1 encryption," Matthew Palko, a Microsoft principal program manager, wrote. "RC4 will be disabled by default and only used if a domain administrator explicitly configures an account or the KDC to use it." [...] Following next year's change, RC4 authentication will no longer function unless administrators perform the extra work to allow it. In the meantime, Palko said, it's crucial that admins identify any systems inside their networks that rely on the cipher. Despite the known vulnerabilities, RC4 remains the sole means of some third-party legacy systems for authenticating to Windows networks. These systems can often go overlooked in networks even though they are required for crucial functions.

To streamline the identification of such systems, Microsoft is making several tools available. One is an update to KDC logs that will track both requests and responses that systems make using RC4 when performing requests through Kerberos. Kerberos is an industry-wide authentication protocol for verifying the identities of users and services over a non-secure network. It's the sole means for mutual authentication to Active Directory, which hackers attacking Windows networks widely consider a Holy Grail because of the control they gain once it has been compromised. Microsoft is also introducing new PowerShell scripts to sift through security event logs to more easily pinpoint problematic RC4 usage. Microsoft said it has steadily worked over the past decade to deprecate RC4, but that the task wasn't easy. "The problem though is that it's hard to kill off a cryptographic algorithm that is present in every OS that's shipped for the last 25 years and was the default algorithm for so long, Steve Syfuhs, who runs Microsoft's Windows Authentication team, wrote on Bluesky. "See," he continued, "the problem is not that the algorithm exists. The problem is how the algorithm is chosen, and the rules governing that spanned 20 years of code changes."

Grid constraints that were once a hallmark of developing economies are now plaguing the world's richest nations, and new research from Bloomberg Economics finds that rising electricity system stress is directly hurting investment. The analysis examined all G20 countries and found that a one-standard-deviation increase in grid stress relative to a country's historical average lowers the investment share of GDP by around 0.33 percentage points -- a 1.5% to 2% hit to capital outlays.

The Netherlands is a case in point: 12,000 businesses are waiting for grid connections, congestion issues are expected to persist for a decade despite $9.4 billion in annual investments, and the country is already consuming as much electricity as was projected for 2030. ASML, the chip equipment maker whose fortunes can sway the Dutch economy, has no guarantee it will secure power for a new campus planned to employ 20,000 people.

Data centers are particularly affected. Google canceled plans near Berlin, a Frankfurt facility cannot expand until 2033, Microsoft has shifted investments from Ireland and the UK to the Nordics, and a Digital Realty Trust data center in Santa Clara that was applied for in 2019 may sit empty for years.

LG smart TV owners discovered over the weekend that a recent webOS software update had quietly installed Microsoft Copilot on their devices, and the app cannot be uninstalled. Affected users report the feature appears automatically after installing the latest webOS update on certain models, sitting alongside streaming apps like Netflix and YouTube.

LG's support documentation confirms that certain preinstalled or system apps can only be hidden, not deleted. At CES 2025, LG announced plans to integrate Copilot into webOS as part of its "AI TV" strategy, describing it as an extension of its AI Search experience. The current implementation appears to function as a shortcut to a web-based Copilot interface rather than a native application. Samsung TVs include Google's Gemini in a similar fashion. Users wanting to avoid the feature entirely are left with one option: disconnecting their TV from the internet.

id Software employees voted to form a wall-to-wall union with the CWA, covering all roles at the Doom studio. "The vote wasn't unanimous, though a majority did vote in favor of the union," notes Engadget. From the report: The union will work in conjunction with the Communications Workers of America (CWA), which is the same organization involved with parent company ZeniMax's recent unionization efforts. Microsoft, who owns ZeniMax, has already recognized this new effort, according to a statement by the CWA. It agreed to a labor neutrality agreement with the CWA and ZeniMax workers last year, paving the way for this sort of thing.

From the onset, this union will look to protect remote work for id Software employees. "Remote work isn't a perk. It's a necessity for our health, our families, and our access needs. RTO policies should not be handed down from executives with no consideration for accessibility or our well-being," said id Software Lead Services Programmer Chris Hays. He also said he looks forward to getting worker protections regarding the "responsible use of AI."

Phoebe Gates, Bill Gates' youngest daughter, has raised $30 million for the AI shopping app she built in her Stanford dorm room with classmate Sophia Kianni. The app is called Phia and is pitched as a way to simplify price comparison and secondhand shopping. "Its AI-powered search engine -- available as an app and as a browser extension for Chrome and Safari -- pulls listings from more than 40,000 retail and resale sites so users can compare prices, surface real-time deals, and determine whether an item's cost is typical, high or fair," reports the San Francisco Chronicle. The app has reached 750,000 downloads in eight months and is valued at $180 million. From the report: Gates told Elle that when she first floated the idea to her parents, they urged her to keep it as a side project -- advice she followed by enrolling in Stanford's night program after moving to New York and finishing her degree in 2024. "They were like, 'Okay, you can do this as a side thing, but you need to stay in school.' I don't think people would expect that from my family, to be honest," she said.

Her father dropped out of Harvard University in 1975 to launch Microsoft. Kianni even paused her degree temporarily "to learn, as quickly as possible, as much as we could about the industry that we would be operating in," she told Vogue. Bill Gates has not invested in the company, though he has publicly supported its mission.

Broadcom has quietly pulled VMware vSphere Foundation from parts of EMEA, pushing smaller customers toward far more expensive bundles and prompting some to consider jumping to Hyper-V or Nutanix. The Register reports: VVF is a bundle that offers compute, storage, and networking virtualization, and a platform to run containers. It's most useful in hyperconverged infrastructure and hybrid clouds, but is less capable than the Cloud Foundation (VCF) private cloud suite. Virtzilla said EMEA customers would need to check with their local dealer to see if VVF was still on sale in their country. "VVF is no longer available in some EMEA countries, but for the majority it is still available," a Broadcom spokesperson said. "Customers will have to reach out to sales reps or partners to determine availability of a given product in their region. These changes were recent."

Our initial tipster said their reseller clued them into the impending change when VMware's new fiscal year started in November. This anonymous customer told us that their hardware fleet boasts thousands of compute cores and without more affordable options, his organization was looking at their annual VMware spend leaping by 10x from around $130,000 to $1.3 million. "We're currently looking to jump ship to either Microsoft's Hyper-V or Nutanix, as we can't eat (that) increase," they told The Register. [...]

For the moment, a Broadcom spokesperson told us it has no plans to ditch VMware vSphere Standard, the basic server virtualization bundle which we're told makes up about 60 percent of the company's licenses and is a lower-cost way to access VMware's hypervisor than buying its full suite of VMware Cloud Foundation products. "We have not announced any changes to the availability of vSphere Standard in EMEA nor end of support for vSphere Standard," the spokesperson said via email. "The product remains fully available across EMEA today. However, Broadcom product availability can vary by region to align with local market requirements, customer demand, and other considerations."

Cisco's stock price touched $80.25 on Wednesday, finally eclipsing its dotcom-era peak of $80.06 set on March 27, 2000 -- when the networking giant briefly surpassed Microsoft to become the world's most valuable company. The journey back took 25 years, eight months and 13 days. The company's fundamentals improved dramatically over that period, of course. Revenues have nearly quintupled since 1999, profits have quadrupled, earnings per share have grown eightfold, and margins have remained healthy throughout. Investors who bought at the peak still lost money to inflation for a generation.

Cisco's trajectory draws obvious comparisons to Nvidia, today's dominant "picks and shovels" supplier for the AI boom. Nvidia trades at a price-to-earnings ratio above 45 and an enterprise value-to-sales ratio near 24. At its 2000 peak, Cisco traded at a P/E above 200 and EV/sales of 31.

An anonymous reader quotes a report from Reuters: U.S. Secretary of State Marco Rubio on Tuesday ordered diplomats to return to using Times New Roman font in official communications, calling his predecessor Antony Blinken's decision to adopt Calibri a "wasteful" diversity move, according to an internal department cable seen by Reuters. The department under Blinken in early January 2023 had switched to Calibri, a modern sans-serif font, saying this was a more accessible font for people with disabilities because it did not have the decorative angular features and was the default in Microsoft products.

A cable dated December 9 sent to all U.S. diplomatic posts said that typography shapes the professionalism of an official document and Calibri is informal compared to serif typefaces. "To restore decorum and professionalism to the Department's written work products and abolish yet another wasteful DEIA program, the Department is returning to Times New Roman as its standard typeface," the cable said. "This formatting standard aligns with the President's One Voice for America's Foreign Relations directive, underscoring the Department's responsibility to present a unified, professional voice in all communications," it added.

An anonymous reader quotes a report from Bloomberg: Shares of Apple were battered earlier this year as the iPhone maker faced repeated complaints about its lack of an artificial intelligence strategy. But as the AI trade faces increasing scrutiny, that hesitance has gone from a weakness to a strength -- and it's showing up in the stock market. Through the first six months of 2025, Apple was the second-worst performer among the Magnificent Seven tech giants, as its shares tumbled 18% through the end of June. That has reversed since then, with the stock soaring 35%, while AI darlings like Meta Platforms and Microsoft slid into the red and even Nvidia underperformed. The S&P 500 Index rose 10% in that time, and the tech-heavy Nasdaq 100 Index gained 13%. [...] As a result, Apple now has a $4.1 trillion market capitalization and the second biggest weight in the S&P 500, leaping over Microsoft and closing in on Nvidia. The shift reflects the market's questioning of the hundreds of billions of dollars Big Tech firms are throwing at AI development, as well as Apple's positioning to eventually benefit when the technology is ready for mass use. "It is remarkable how they have kept their heads and are in control of spending, when all of their peers have gone the other direction," said John Barr, portfolio manager of the Needham Aggressive Growth Fund.

Bill Stone, chief investment officer at Glenview Trust Company, added: "While they most certainly will incorporate more AI into the phones over time, Apple has avoided the AI arms race and the massive capex that accompanies it." His company views Apple's stock as "a bit of an anti-AI holding."

Microsoft has announced that it will raise prices on its Microsoft 365 productivity suites for businesses and government clients starting in July 2026, marking the first commercial price increase since 2022. Small business and frontline worker plans face the steepest hikes: Business Basic jumps 16.7% to $7 per user per month, while frontline worker subscriptions surge up to 33%. Enterprise plans see more modest bumps, ranging from 5.3% for E5 to 8.3% for E3. Microsoft attributed the increases to more than 1,100 new features added to the suite, including AI-driven tools and security enhancements. Copilot remains a separate $30-per-month add-on.

Microsoft announced on Tuesday its largest-ever investment in Asia -- $17.5 billion over four years starting in 2026 -- to expand cloud and AI infrastructure across India, fund skilling programs, and support ongoing operations in the country. The commitment adds to a $3 billion investment the company announced in January 2025 that is on track to be spent by the end of 2026. A new hyperscale cloud region in Hyderabad is set to go live in mid-2026 and will be Microsoft's largest in India, comprising three availability zones.

The company also plans to integrate AI into two government employment platforms -- e-Shram and the National Career Service -- that serve more than 310 million informal workers. Microsoft is doubling its India skilling target to 20 million people by 2030; since January, it has already trained 5.6 million.

Microsoft's Xbox consoles were conspicuously absent from Black Friday's winners, failing to crack the top three in U.S. sales during one of the retail calendar's most important weeks. According to Circana analyst Mat Piscatella, the PlayStation 5 captured 47% of Black Friday week console sales ending November 29, followed by the Nintendo Switch 2 at 24% and -- somewhat remarkably -- the NEX Playground, a Kinect-like Android device aimed at children, at 14%.

Microsoft ran no promotions on its consoles during the period. The Xbox Series X currently retails for $650 following this year's price increase, up from its $500 launch price in 2020. Sony, by contrast, discounted the PS5 by roughly 40% at some retailers. Piscatella noted on Bluesky that products without price promotions typically see no seasonal lift. Costco has removed Xbox consoles from its U.S. and UK websites.

Microsoft Excel, the 40-year-old spreadsheet application that helped establish personal computers as essential workplace tools and contributed to Microsoft's current valuation of nearly $4 trillion, has weathered both the rise of cloud computing and the current AI boom largely unscathed. In its most recent quarter, commercial revenue for Microsoft 365 -- the bundle including Excel, Word, and PowerPoint -- increased 17% year over year, and consumer revenue rose 28%.

The software traces its origins to a 1983 Microsoft offsite under the code name Odyssey, where engineers set out to clone Lotus 1-2-3. That program had itself cloned VisiCalc, the first computerized spreadsheet, created by Dan Bricklin for the Apple II in the late 1970s. Bricklin never patented VisiCalc. "Financially it would have been great if we'd have been able to patent it," he told Bloomberg. "And there would be a Bricklin Building at MIT, instead of a Gates Building."

Excel now counts an estimated 500 million paying users. The Pentagon pays for 2 million Microsoft 365 licenses. Google's free Sheets product, launched in 2006, captured casual use cases like potluck sign-ups but failed to dislodge Excel from enterprise work. AI chatbots present the latest challenge, but venture capitalists say nearly every AI spreadsheet startup they meet builds on top of Excel rather than replacing it.

Tech giants including Meta, Alphabet, Microsoft and Amazon have all extended the estimated useful lives of their servers and AI equipment over the past five years, sparking a debate among investors about whether these accounting changes are artificially inflating profits. Meta this year increased its depreciation timeline for most servers and network assets to 5.5 years, up from four to five years previously and as little as three years in 2020. The company said the change reduced its depreciation expense by $2.3 billion for the first nine months of 2025. Alphabet and Microsoft now use six-year periods, up from three in 2020. Amazon extended to six years by 2024 but cut back to five years this year for some servers and networking equipment.

Michael Burry, the investor portrayed in "The Big Short," called extending useful lives "one of the more common frauds of the modern era" in an article last month. Meta's total depreciation expense for the nine-month period was almost $13 billion against pretax profit exceeding $60 billion.

Linus Torvalds recently defended Windows' infamous Blue Screen of Death during a video with Linus Sebastian of Linus Tech Tips, where the two built a PC together. It's FOSS reports: In that video, Sebastian discussed Torvalds' fondness for ECC (Error Correction Code). I am using their last name because Linus will be confused with Linus. This is where Torvalds says this: "I am convinced that all the jokes about how unstable Windows is and blue screening, I guess it's not a blue screen anymore, a big percentage of those were not actually software bugs. A big percentage of those are hardware being not reliable."

Torvalds further mentioned that gamers who overclock get extra unreliability. Essentially, Torvalds believes that having ECC on the machine makes them more reliable, makes you trust your machine. Without ECC, the memory will go bad, sooner or later. He thinks that more than software bugs, often it is hardware behind Microsoft's blue screen of death. You can watch the video on YouTube (the BSOD comments occur at ~9:37).

Ancient Slashdot user Alain Williams shares a report from Al Jazeera: The Irish Council for Civil Liberties (ICCL) has announced it filed a complaint against Microsoft, accusing the global tech giant of unlawfully processing data on behalf of the Israeli military and facilitating the killings of Palestinian civilians in Gaza. In the complaint, the council asked the Data Protection Commission -- the European Union's lead data regulator for the company -- to "urgently investigate" Microsoft Ireland's processing.

"Microsoft's technology has put millions of Palestinians in danger. These are not abstract data-protection failures -- they are violations that have enabled real-world violence," Joe O'Brien, ICCL's executive director, said in a statement. "When EU infrastructure is used to enable surveillance and targeting, the Irish Data Protection Commission must step in -- and it must use its full powers to hold Microsoft to account."

After months of complaints from rights groups and Microsoft whistleblowers, the company said in September it cancelled some services to the Israeli military over concerns that it was violating Microsoft's terms of service by using cloud computing software to spy on millions of Palestinians.

joshuark shares a report from BleepingComputer: Microsoft has silently "mitigated" a high-severity Windows LNK vulnerability exploited by multiple state-backed and cybercrime hacking groups in zero-day attacks. Tracked as CVE-2025-9491, this security flaw allows attackers to hide malicious commands within Windows LNK files, which can be used to deploy malware and gain persistence on compromised devices. However, the attacks require user interaction to succeed, as they involve tricking potential victims into opening malicious Windows Shell Link (.lnk) files. Thus some element of social engineering, and user technically naive and gullibility such as thinking Windows is secure is required. [...]

As Trend Micro threat analysts discovered in March 2025, the CVE-2025-9491 was already being widely exploited by 11 state-sponsored groups and cybercrime gangs, including Evil Corp, Bitter, APT37, APT43 (also known as Kimsuky), Mustang Panda, SideWinder, RedHotel, Konni, and others. Microsoft told BleepingComputer in March that it would "consider addressing" this zero-day flaw, even though it didn't "meet the bar for immediate servicing." ACROS Security CEO and 0patch co-founder Mitja Kolsek found, Microsoft has silently changed LNK files in the November updates in an apparent effort to mitigate the CVE-2025-9491 flaw. After installing last month's updates, users can now see all characters in the Target field when opening the Properties of LNK files, not just the first 260. As the movie the Ninth Gate stated: "silentium est aurum"

Despite Windows 10 losing free support, Statcounter shows Windows 11 holding only a modest lead of 53.7% market share compared to Windows 10's 42.7%. Analysts say the slow transition reflects both hardware limitations and a lack of must-have Windows 11 features compelling organizations to refresh their fleets. The Register reports: The Register spoke to Lansweeper principal technical evangelist Esben Dochy, who noted that consumers were more likely to have devices that couldn't be upgraded or follow the "if it ain't broke, don't fix it" rule when it comes to change. He also pointed out consumers in the EU get Microsoft Extended Security Updates (ESU) for free.

For businesses, though, it's different. Dochy told us: "The primary blocker is slow change management processes. These can be slow due to bad planning, lack of resources, difficulty in execution (in highly distributed organizations) etc. "The ESU are used to be secure while those change management processes take place, but organizations will have to pay to get those ESU making it more expensive for unprepared or inefficient organizations." [...]

The challenge facing Windows 11 is that, other than the end of free support for many versions, there is no must-have feature to make enterprises break a hardware refresh cycle, particularly in a difficult economic environment. Microsoft has not released official statistics on Windows 11 adoption. However, hardware vendors have noted the sluggish pace of transition. Dell COO Jeffrey Clarke commented during an analyst call: "If you were to look at it relative to the previous OS end of support, we are 10-12 points behind at that point with Windows 11 than we were with the previous generation."