Microsoft / Copilot

Bloomberg reports Microsoft is testing DeepSeek-R1 and DeepSeek-V4, planning to offer these Chinese models to Western customers. Microsoft also sells ChatGPT to Chinese enterprises, building a two-way AI model trade network across the US and China. The post doesn't disclose pricing, revenue splits, or launch dates.

The Enterprise-Managed Authorization (EMA) extension for MCP is now stable. Orgs centrally control MCP server access through their IdP, so users get connected servers on first login with no per-app OAuth. Okta is the first supported IdP; Anthropic's Claude family and VS Code have added client support; Asana, Atlassian, Figma, and 4 other tools already support the extension. The post doesn't disclose pricing or rollout timelines.

Microsoft is selling OpenAI models to Chinese firms via Azure, sidestepping OpenAI's own China block. Revenue from this line has grown fast over the past year, though Bloomberg doesn't disclose absolute numbers. ByteDance, Xiaomi, and Nio are named as customers. Worth flagging: growth is real, but the base may be small and export controls remain a live risk.

Audited financials obtained by journalist Ed Zitron show OpenAI's revenue hit $13.07B in 2025, but R&D alone cost $19.18B—$10.59B of that paid to Microsoft. Cost of revenue and sales/marketing pushed the operating loss to $20.92B. A one-time ~$30B accounting charge tied to the for-profit conversion inflated the net loss to $39B; stripping that out leaves roughly $8B. Operating loss improved from 237% to 160% of revenue, but the 2030 profitability target still looks distant. The post doesn't disclose user counts or per-customer pricing details.

Hugging Face released Discover Tool, a reference implementation of the Agentic Resource Discovery (ARD) spec. ARD is an open draft co-developed by Microsoft, Google, GoDaddy, Hugging Face, and others. It lets agents find MCP tools, A2A agents, or skills at runtime via natural-language search instead of hardcoding each one. Hugging Face's implementation wraps the Hub's existing semantic search and Agent Skills into an ARD catalog, exposed as a REST API and an MCP Tool. The post does not disclose pricing, search latency, or accuracy figures.

Gary Marcus argues OpenAI's moat is gone, citing three data points: market share fell below 50% for the first time as Google eats into it; Microsoft is exploring DeepSeek over OpenAI for Copilot; and audited 2025 financials show $13.07B revenue against $34B in costs—losses up nearly 8x year-over-year. Marcus says pure LLM businesses lack stickiness since regular users see no difference between ChatGPT and Gemini. He also notes Washington may inadvertently help OpenAI by targeting Anthropic with export controls, but stands by his prediction that OpenAI will be acquired, with Elon Musk as a dark-horse bidder.

Copilot Cowork is switching from unlimited pricing to usage-based billing because users running hundreds of tasks per week drove costs too high. Microsoft is considering an optional, fine-tuned, safety-guarded DeepSeek V4 hosted on Azure. A working model exists but no final decision yet.

Ed Zitron obtained audited OpenAI financials, independently verified by the FT. In 2025, OpenAI had $13.07B in revenue against $34B in costs, an operating loss of $20.92B. A $41.55B fair-value hit from the nonprofit-to-for-profit conversion pushed the net loss attributable to the company to $38.53B — nearly 8x the $5.09B loss in 2024. R&D alone was $19.18B, including $10.59B paid to Microsoft for training and cloud. Total 2025 payments to Microsoft reached $17.2B. SoftBank paid OpenAI $867M, Microsoft paid $303M. The post doesn't explain the $17.87B in costs removed via noncontrolling interests, so treat the headline loss with that caveat — but even the operating loss is staggering.

GitHub Copilot demand is outpacing Azure's GPU supply, so Microsoft signed a deal to rent Nvidia GPUs from AWS for inference and fine-tuning. The post doesn't disclose the number of GPUs, contract value, or migration timeline.

Satya Nadella published an X article with over 60M views, packaging ideas from his Latent Space podcast into 'Loopcraft' — a theory that compounding human capital and token capital inside a learning loop matters more than picking the best model. No product timelines are disclosed; the essay reads as Microsoft's first clear AI strategy statement since the OpenAI split eight months ago. The same day, Anthropic's Fable 5 hit 161 on the Epoch Capabilities Index, edging GPT-5.5 Pro, then got suspended by a US export-control action, making the case for model neutrality and own-your-stack architecture feel less theoretical.

Nadella argues enterprises need both human capital (knowledge, judgment, relationships) and token capital (in-house AI capability). He warns that if a few models capture all value, it repeats the hollowing-out of globalization. The fix: every firm builds its own learning loop—swap base models without losing expert knowledge, and use private evaluation plus RL on real internal trajectories.

DuckDuckGo founder Gabriel Weinberg cites Gallup, Microsoft telemetry, Datos, and other surveys to show US AI adoption is closer to one-third active, one-third occasional, and one-third never. Gen Z adoption has stalled year-over-year while anger toward AI jumped ~40%. Top reasons for limiting use: job loss fears, privacy violations, misinformation, and low perceived usefulness. The post does not provide non-US comparison data.

This TechCrunch podcast episode covers the IPO market heating up with a new acronym: MANGOS — Meta (or Microsoft), Anthropic, Nvidia, Google, OpenAI, and SpaceX. Half of that group is heading to public markets in the same window, testing investor appetite and valuations. The post is an RSS snippet and doesn't disclose specific timelines or valuation ranges.

Microsoft's legal team is reviewing Anthropic's new data retention policy and has internally restricted employee access to Claude Fable. The post doesn't spell out the exact scope of the restriction. The core concern is that sensitive data could be retained by Anthropic when employees use Claude Fable. Microsoft is pushing its own Copilot, so this move is about both security compliance and competition.

Class of 2026 graduates booed AI-themed speeches at multiple commencements, and Princeton students rejected a jacket design suspected of using AI. Microsoft President Brad Smith said the industry must answer public concerns seriously, arguing AI should augment people, not replace them. He also downplayed immediate job disruption, saying AI will spread through the economy more slowly than its biggest boosters claim. Microsoft CFO Amy Hood avoided mentioning AI entirely in her Duke commencement speech and received no boos.

Microsoft AI CEO Mustafa Suleyman told Decoder that Anthropic speculating about Claude's consciousness inside its 'constitution' is 'really, really dangerous.' He argues Anthropic anthropomorphized Claude so heavily that the design 'wireheaded' them into believing the model has glimmers of consciousness they put there in the first place. The post only provides a podcast snippet; it doesn't detail the specific constitution language or include Anthropic's response.

The title says Microsoft's open source tools were hacked to steal passwords from AI developers; the RSS snippet does not disclose the affected tools, attack mechanism, timeline, or victim count.

Mustafa Suleyman said superintelligence is coming without causing mass unemployment; Microsoft signed a new OpenAI contract last October and released seven omnimodal models at Build this week.

GitHub released the open-source Spec Kit, shifting AI coding from direct implementation to product specifications, gap clarification, technical planning, task breakdown, and agent execution, with support for 30+ agent integrations including Copilot, Claude Code, Codex, Gemini, Cursor, and Qwen, and 109K+ GitHub stars.

Microsoft’s AI chief said Anthropic models cost too much and the company is developing cheaper internal alternatives; the post does not disclose model names, cost figures, or a launch timeline.