Microsoft AI News & Updates

Microsoft AI Chief Opposes AI Consciousness Research While Other Tech Giants Embrace AI Welfare Studies

Microsoft's AI CEO Mustafa Suleyman argues that studying AI consciousness and welfare is "premature and dangerous," claiming it exacerbates human problems like unhealthy chatbot attachments and creates unnecessary societal divisions. This puts him at odds with Anthropic, OpenAI, and Google DeepMind, which are actively hiring researchers and developing programs to study AI welfare, consciousness, and potential rights for AI systems.

Microsoft Negotiates Continued Access to OpenAI Technology Post-AGI Achievement

Microsoft is in advanced negotiations with OpenAI to secure ongoing access to the company's technology even after OpenAI declares it has achieved AGI, which would normally terminate their current partnership agreement. The talks are part of OpenAI's broader transition from a non-profit structure to a fully commercial enterprise, with Microsoft seeking a 30%+ equity stake in the restructured company. The agreement would remove a major obstacle to OpenAI's commercialization while ensuring Microsoft retains its strategic AI advantage beyond 2030 or the AGI milestone.

OpenAI Signs $200M Defense Contract, Raising Questions About Microsoft Partnership

OpenAI has secured a $200 million deal with the U.S. Department of Defense, potentially straining its relationship with Microsoft. The deal reflects Silicon Valley's growing military partnerships and calls for an AI "arms race" among industry leaders.

OpenAI-Microsoft Partnership Shows Signs of Strain Over IP Control and Market Competition

OpenAI and Microsoft's partnership is experiencing significant tension, with OpenAI executives considering accusations of anticompetitive behavior and seeking federal regulatory review of their contract. The conflict centers around OpenAI's desire to loosen Microsoft's control over its intellectual property and computing resources, particularly regarding the $3 billion Windsurf acquisition, while still needing Microsoft's approval for its for-profit conversion.

Microsoft Integrates OpenAI's Sora Video Generation Model into Bing for Free Access

Microsoft has integrated OpenAI's Sora video generation model into its Bing app, offering users the ability to create AI-generated videos from text prompts for free. This marks the first time Sora has been made available without payment, though users are limited to ten free videos before needing to use Microsoft Rewards points. The feature currently supports only five-second vertical videos with lengthy generation times.

Microsoft's Engineering Layoffs Coincide with AI-Assisted Coding Adoption

Microsoft's recent 2,000-person layoff in Washington state disproportionately affected software engineers, who made up over 40% of those cut. This comes shortly after CEO Satya Nadella revealed that AI now writes up to 30% of the company's code, though Microsoft declined to comment on whether the layoffs were related to AI-assisted coding.

Microsoft's WizardLM Research Team Joins Tencent's Hunyuan AI Division

A Beijing-based Microsoft AI research group called WizardLM has left Microsoft to join Tencent's Hunyuan AI development organization. The team has already released a Hunyuan-branded model claimed to outperform Google's open models, continuing their work after a controversial incident where Microsoft pulled their previously released WizardLM-2 models from the web due to missing toxicity testing.

OpenAI and Microsoft Renegotiating Partnership Terms Amid Corporate Restructuring

OpenAI is reportedly in difficult negotiations with Microsoft regarding its planned corporate restructuring, which would maintain nonprofit board control while converting its business arm to a for-profit public benefit corporation. According to sources cited by the Financial Times, Microsoft is seeking to finalize its equity stake in the new entity, with discussions also covering extended access to OpenAI technology beyond the current 2030 agreement limit.

Microsoft Adopts Google's Agent2Agent Protocol for AI Communication

Microsoft has announced support for Google's Agent2Agent (A2A) protocol in its Azure AI Foundry and Copilot Studio platforms. The A2A protocol enables AI agents from different providers to communicate and collaborate across clouds, apps, and services, allowing developers to build complex multi-agent workflows while maintaining governance standards.

Microsoft Launches Powerful Small-Scale Reasoning Models in Phi 4 Series

Microsoft has introduced three new open AI models in its Phi 4 family: Phi 4 mini reasoning, Phi 4 reasoning, and Phi 4 reasoning plus. These models specialize in reasoning capabilities, with the most advanced version achieving performance comparable to much larger models like OpenAI's o3-mini and approaching DeepSeek's 671 billion parameter R1 model despite being substantially smaller.