Microsoft joins AI cost-cutting trend by relying more on its own models
Microsoft is the latest Silicon Valley giant to cut back on its AI spending.
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Microsoft starts swapping OpenAI and Anthropic out for its own AI in some apps
Microsoft has begun replacing OpenAI and Anthropic models with its own AI in some product features, Bloomberg reports. The shift routes selected tasks to Microsoft’s in-house MAI models where cost or data residency favours them. The change is incremental rather than a clean break. OpenAI and Anthropic still handle most production traffic inside Copilot, with MAI […]
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Microsoft fixes storage-hogging Windows 11 folder
Microsoft is addressing a Windows 11 bug that caused a folder to take up several gigabytes of storage space. As spotted earlier by Windows Latest, Microsoft included the patch in its optional June 2026 update (KB5095093), which “improves disk space usage for the CapabilityAccessManager.db-wal file.” The CapabilityAccessManager.db-wal file is installed on Windows 11 PCs by […]
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Microsoft guts Xbox: 3,200 jobs cut and five studios divested, two of them European
Microsoft told its Xbox staff the truth in blunt terms: the business “is not healthy.” The fix? 3,200 job cuts, five studios out the door, two of them European. Xbox chief executive Asha Sharma laid it out in an official memo on Monday. She called it the most significant restructure in the division’s history. Xbox […]
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Microsoft lays off nearly 5,000 employees across Xbox, commercial sales
Microsoft cut around 4,800 roles, or 2.1% of its global workforce, on Monday — the latest in a series of layoffs that’s stoking fears of AI replacing jobs. The layoffs will hit Xbox and commercial sales the hardest.
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Microsoft is selling off four Xbox studios as part of significant gaming cuts
Microsoft is laying off 4,800 employees today, and more than 30 percent of the job losses are in the company’s Xbox division. The significant gaming cuts will affect nearly every part of Xbox and also involve four game studios being spun off to be run independently from Microsoft. Today’s layoffs, which are being described as […]
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Microsoft is laying off 4,800 employees
A year after cutting around 9,100 employees, Microsoft is making further layoffs today as it begins its new financial year. The software maker is laying off around 4,800 employees today, approximately 2.1 percent of its workforce. Most of the employees affected by today’s cuts are in Microsoft’s commercial sales business or the company’s Xbox division. […]
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Xbox is a disaster
This is The Stepback, a weekly newsletter breaking down one essential story from the tech world. For more on the bleak state of the video game industry, follow Andrew Webster. The Stepback arrives in our subscribers’ inboxes on Sunday at 8AM ET. Opt in for The Stepback here. How it started Microsoft closed out Summer […]
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The chip industry has a warning for Trump: hands off the memory market
The memory shortage has become a political problem in Washington. Now the chip industry has a message for the Trump administration: leave the market alone, or the squeeze gets worse. The warning came in a letter from SEMI, a semiconductor industry group, to senior US officials. Any attempt to fix the shortage by steering prices […]
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Microsoft launches a $2.5 billion AI deployment business with 6,000 engineers
Microsoft announced a new operating business called Microsoft Frontier company on Thursday, backed by a $2.5 billion investment and 6,000 industry and engineering experts. The venture is focused on delivering enterprise AI deployments using Microsoft’s existing tools, with early partnerships including the London Stock Exchange Group, Unilever, Land O’Lakes, and Accenture. Commercial Business CEO Judson […]
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