An anonymous reader quotes a report from TechCrunch: Microsoft has changed its policy to ban U.S. police departments from using generative AI through the Azure OpenAI Service, the company's fully managed, enterprise-focused wrapper around OpenAI technologies. Language added Wednesday to the terms of service for Azure OpenAI Service prohibits integrations with Azure OpenAI Service from being used "by or for" police departments in the U.S., including integrations with OpenAI's text- and speech-analyzing models. A separate new bullet point covers "any law enforcement globally," and explicitly bars the use of "real-time facial recognition technology" on mobile cameras, like body cameras and dashcams, to attempt to identify a person in "uncontrolled, in-the-wild" environments. [...]

The new terms leave wiggle room for Microsoft. The complete ban on Azure OpenAI Service usage pertains only to U.S., not international, police. And it doesn't cover facial recognition performed with stationary cameras in controlled environments, like a back office (although the terms prohibit any use of facial recognition by U.S. police). That tracks with Microsoft's and close partner OpenAI's recent approach to AI-related law enforcement and defense contracts. Last week, taser company Axon announced a new tool that uses AI built on OpenAI's GPT-4 Turbo model to transcribe audio from body cameras and automatically turn it into a police report. It's unclear if Microsoft's updated policy is in response to Axon's product launch.

Microsoft is fully rolling out passkey support for all consumer accounts today. From a report: After enabling them in Windows 11 last year, Microsoft account owners can also now generate passkeys across Windows, Android, and iOS. This makes it effortless to sign in to a Microsoft account without having to type a password in every time.

An anonymous reader quotes a report from Reuters: Microsoft said on Thursday it will invest $2.2 billion over the next four years in Malaysia to expand cloud and artificial intelligence (AI) services in the company's latest push to promote its generative AI technology in Asia. The investment, the largest in Microsoft's 32-year history in Malaysia, will include building cloud and AI infrastructure, creating AI-skilling opportunities for 200,000 people, and supporting the country's developers, the company said.

Microsoft will also work with the Malaysian government to establish a national AI Centre of Excellence and enhance the nation's cybersecurity capabilities, the company said in a statement. Prime Minister Anwar Ibrahim, who met Nadella on Thursday, said the investment supported Malaysia's efforts in developing its AI capabilities. Microsoft is trying to expand its support for the development of AI globally. Nadella this week announced a $1.7 billion investment in neighboring Indonesia and said Microsoft would open its first regional data centre in Thailand. "We want to make sure we have world class infrastructure right here in the country so that every organization and start-up can benefit," Microsoft Chief Executive Satya Nadella said during a visit to Kuala Lumpur.

Microsoft has confirmed that the April 2024 Windows security updates break VPN connections across client and server platforms. From a report: The company explains on the Windows health dashboard that "Windows devices might face VPN connection failures after installing the April 2024 security update or the April 2024 non-security preview update."

"We are investigating user reports, and we will provide more information in the coming days," Redmond added. The list of affected Windows versions includes Windows 11, Windows 10, and Windows Server 2008 and later.

Windows 11's market share dropped in April 2024, falling below 26% after reaching an all-time high of 28.16% in February. According to Statcounter, Windows 11 lost 0.97 points, while Windows 10 gained 0.96 points, crossing the 70% mark for the first time since September 2023. Neowin adds: Some argue that Windows 11 still offers little to no benefits for upgrading, especially in light of Microsoft killing some of the system's unique features, such as Windows Subsystem for Android. Add to that the ever-increasing number of ads, some of which are quite shameless, and you get an operating system that has a hard time winning hearts and minds, and retaining its customers.

Microsoft's motivation for investing heavily and partnering with OpenAI came from a sense of falling badly behind Google, according to an internal email released Tuesday as part of the Justice Department's antitrust case against the search giant. Bloomberg: The Windows software maker's chief technology officer, Kevin Scott, was "very, very worried" when he looked at the AI model-training capability gap between Alphabet's efforts and Microsoft's, he wrote in a 2019 message to Chief Executive Officer Satya Nadella and co-founder Bill Gates. The exchange shows how the company's top executives privately acknowledged they lacked the infrastructure and development speed to catch up to the likes of OpenAI and Google's DeepMind.

[...] Scott, who also serves as executive vice president of artificial intelligence at Microsoft, observed that Google's search product had improved on competitive metrics because of the Alphabet company's advancements in AI. The Microsoft executive wrote that he made a mistake by dismissing some of the earlier AI efforts of its competitors. "We are multiple years behind the competition in terms of machine learning scale," Scott said in the email. Significant portions of the message, titled 'Thoughts on OpenAI,' remain redacted. Nadella endorsed Scott's email, forwarding it to Chief Financial Officer Amy Hood and saying it explains "why I want us to do this."

theodp writes: Reports of the death of Bill Gates' influence at Microsoft have been greatly exaggerated: "Publicly, [Bill] Gates has been almost entirely out of the picture at Microsoft since 2021, following allegations that he had behaved inappropriately toward female employees. In fact, Business Insider has learned, Gates has been quietly orchestrating much of Microsoft's AI revolution from behind the scenes. Current and former executives say Gates remains intimately involved in the company's operations -- advising on strategy, reviewing products, recruiting high-level executives, and nurturing Microsoft's crucial relationship with Sam Altman, the cofounder and CEO of OpenAI.

In early 2023, when Microsoft debuted a version of its search engine Bing turbocharged by the same technology as ChatGPT, throwing down the gauntlet against competitors like Google, Gates, executives said, was pivotal in setting the plan in motion. While Nadella might be the public face of the company's AI success [...] Gates has been the man behind the curtain."[...] "Today, Gates remains close with Altman, who visits his home a few times a year, and OpenAI seeks his counsel on developments. There's a 'tight coupling' between Gates and OpenAI, a person familiar with the relationship said. 'Sam and Bill are good friends. OpenAI takes his opinion and consult overall seriously.' OpenAI spokesperson Kayla Wood confirmed OpenAI continues to meet with Gates."

Eight prominent U.S. newspapers owned by investment giant Alden Global Capital are suing OpenAI and Microsoft for copyright infringement, in a complaint filed Tuesday in the Southern District of New York. From a report: Until now, the Times was the only major newspaper to take legal action against AI firms for copyright infringement. Many other news publishers, including the Financial Times, the Associated Press and Axel Springer, have instead opted to strike paid deals with AI companies for millions of dollars annually, undermining the Times' argument that it should be compensated billions of dollars in damages.

The lawsuit is being filed on behalf of some of the most prominent regional daily newspapers in the Alden portfolio, including the New York Daily News, Chicago Tribune, Orlando Sentinel, South Florida Sun Sentinel, San Jose Mercury News, Denver Post, Orange County Register and St. Paul Pioneer Press.

If 2023 was the tech industry's year of the A.I. chatbot, 2024 is turning out to be the year of A.I. plumbing. From a report: It may not sound as exciting, but tens of billions of dollars are quickly being spent on behind-the-scenes technology for the industry's A.I. boom. Companies from Amazon to Meta are revamping their data centers to support artificial intelligence. They are investing in huge new facilities, while even places like Saudi Arabia are racing to build supercomputers to handle A.I. Nearly everyone with a foot in tech or giant piles of money, it seems, is jumping into a spending frenzy that some believe could last for years.

Microsoft, Meta, and Google's parent company, Alphabet, disclosed this week that they had spent more than $32 billion combined on data centers and other capital expenses in just the first three months of the year. The companies all said in calls with investors that they had no plans to slow down their A.I. spending. In the clearest sign of how A.I. has become a story about building a massive technology infrastructure, Meta said on Wednesday that it needed to spend billions more on the chips and data centers for A.I. than it had previously signaled. "I think it makes sense to go for it, and we're going to," Mark Zuckerberg, Meta's chief executive, said in a call with investors.

The eye-popping spending reflects an old parable in Silicon Valley: The people who made the biggest fortunes in California's gold rush weren't the miners -- they were the people selling the shovels. No doubt Nvidia, whose chip sales have more than tripled over the last year, is the most obvious A.I. winner. The money being thrown at technology to support artificial intelligence is also a reminder of spending patterns of the dot-com boom of the 1990s. For all of the excitement around web browsers and newfangled e-commerce websites, the companies making the real money were software giants like Microsoft and Oracle, the chipmaker Intel, and Cisco Systems, which made the gear that connected those new computer networks together. But cloud computing has added a new wrinkle: Since most start-ups and even big companies from other industries contract with cloud computing providers to host their networks, the tech industry's biggest companies are spending big now in hopes of luring customers.

An anonymous reader shared this report from the Associated Press: Tech giant Cisco Systems on Wednesday joined Microsoft and IBM in signing onto a Vatican-sponsored pledge to ensure artificial intelligence is developed and used ethically and to benefit the common good... The pledge outlines key pillars of ethical and responsible use of AI. It emphasizes that AI systems must be designed, used and regulated to serve and protect the dignity of all human beings, without discrimination, and their environments. It highlights principles of transparency, inclusion, responsibility, impartiality and security as necessary to guide all AI developments.

The document was unveiled and signed at a Vatican conference on Feb. 28, 2020... Pope Francis has called for an international treaty to ensure AI is developed and used ethically, devoting his annual peace message this year to the topic.

"Kremlin-backed hackers have been exploiting a critical Microsoft vulnerability for four years," Ars Technica reported this week, "in attacks that targeted a vast array of organizations with a previously undocumented tool, the software maker disclosed Monday.

"When Microsoft patched the vulnerability in October 2022 — at least two years after it came under attack by the Russian hackers — the company made no mention that it was under active exploitation." As of publication, the company's advisory still made no mention of the in-the-wild targeting. Windows users frequently prioritize the installation of patches based on whether a vulnerability is likely to be exploited in real-world attacks.

Exploiting CVE-2022-38028, as the vulnerability is tracked, allows attackers to gain system privileges, the highest available in Windows, when combined with a separate exploit. Exploiting the flaw, which carries a 7.8 severity rating out of a possible 10, requires low existing privileges and little complexity. It resides in the Windows print spooler, a printer-management component that has harbored previous critical zero-days. Microsoft said at the time that it learned of the vulnerability from the US National Security Agency... Since as early as April 2019, Forest Blizzard has been exploiting CVE-2022-38028 in attacks that, once system privileges are acquired, use a previously undocumented tool that Microsoft calls GooseEgg. The post-exploitation malware elevates privileges within a compromised system and goes on to provide a simple interface for installing additional pieces of malware that also run with system privileges. This additional malware, which includes credential stealers and tools for moving laterally through a compromised network, can be customized for each target.

"While a simple launcher application, GooseEgg is capable of spawning other applications specified at the command line with elevated permissions, allowing threat actors to support any follow-on objectives such as remote code execution, installing a backdoor, and moving laterally through compromised networks," Microsoft officials wrote.
Thanks to Slashdot reader echo123 for sharing the news.

In its third-quarter earnings call on Thursday, Microsoft reported a 30% drop in Xbox console sales, after reporting a 30% drop last April. "It blamed the nosedive on a 'lower volume of consoles sold' during the start of 2024," reports Kotaku. From the report: In February, Grand Theft Auto VI parent company Take-Two claimed in a presentation to investors that there were roughly 77 million "gen 9" consoles in people's homes. It didn't take fans long to do the math and speculate that Microsoft had only sold around 25 million Xbox Series X/S consoles to-date. That puts it ahead of the GameCube but behind the Nintendo 64, at least for now. Given the results this quarter as well, it doesn't seem like Game Pass and Starfield have moved the needle much. Maybe that will change once Call of Duty, which Microsoft acquired last fall along with the rest of Activision Blizzard, finally makes its way to Game Pass. Diablo IV only just arrived on the Netflix-like subscription platform this month. But given the fact that the fate of Xbox Series X/S appears to be locked in at this point, it's easy to see why Microsoft is looking at other places it can put its games.

Sea of Thieves, the last of four games in this initial volley to come to PS5, dominated the PlayStation Store's top sellers list last week on pre-orders alone. CEO Satya Nadella specifically called this out during a call with investors, noting that Microsoft had more games in the top 25 best sellers on PS5 than any other publisher. "We are committed to meeting players where they are by bringing great games to more people on more devices," he said. If players there continue to flock to the live-service pirate sim, it's not hard to imagine Microsoft bringing another batch of its first-party exclusives to the rival platform. Whether that means more recent blockbusters like Starfield or the upcoming Indiana Jones game will someday make the journey remains to be seen.

Tobias Mann reports via The Register: Canadian systems builder 45 Drives is perhaps best known for the dense multi-drive storage systems employed by the likes of Backblaze and others, but over the last year the biz has expanded its line-up to virtualization kit, and now low-power clients and workstations aimed at enterprises and home enthusiasts alike. 45 Drives' Home Client marks a departure from the relatively large rack-mount chassis it normally builds. Founder Doug Milburn told The Register the mini PC is something of a passion project that was born out of a desire to build a better home theater PC.

Housed within a custom passively cooled chassis built in-house by 45 Drive's parent company Protocase, is a quad-core, non-hyperthreaded Intel Alder Lake-generation N97 processor capable of boosting to 3.6GHz, your choice of either 8GB or 16GB of memory, and 250GB of flash storage. The decision to go with a 12-gen N-series was motivated in part by 45 Drives' internal workloads, Milburn explains, adding that to run PowerPoint or Salesforce just doesn't require that much horsepower. However, 45 Drives doesn't just see this as a low-power PC. Despite its name, the box will be sold under both its enterprise and home brands. In home lab environments, these small form factor x86 and Arm PCs have become incredibly popular for everything from lightweight virtualization and container hosts to firewalls and routers. [...]

In terms of software, 45 Drives says it will offer a number of operating system images for customers to choose from at the time of purchase, and Linux will be a first-class citizen on these devices. It's safe to say that Milburn isn't a big fan of Microsoft these days. "We run many hundreds of Microsoft workstations here, but we're kind of moving away from it," he said. "With Microsoft, it's a control thing; it's forced updates; it's a way of life with them." Milburn also isn't a fan of Microsoft's registration requirements and online telemetry. "We want control over what all our computers do. We want no traffic on our network that's out of here," he said. As a result, Milburn says 45 Drives is increasingly relying on Linux, and that not only applies to its internal machines but its products as well. Having said that, we're told that 45 Drives recognizes that Linux may not be appropriate for everyone and will offer Windows licenses at an additional cost. And, these both being x86 machines, there's nothing stopping you from loading your preferred distro or operating system on them after they've shipped. These workstations aren't exactly cheap. They start at $1,099 without the dedicated GPU. "The HL15 will set you back $799-$910 for the bare chassis if you opted for the PSU or not," adds The Register. "Meanwhile, a pre-configured system would run you $1,999 before factoring in drives."

An anonymous reader shares a report: With Windows 11 24H2 all geared up to have AI-intensive applications, Microsoft has added a code that will warn you if your PC does not meet the hardware requirements, according to code dug up by Twitter/X sleuth Albacore. The warning will be displayed as a watermark so you know that you cannot use certain AI-powered built-in apps because of an unsupported CPU.

Sam Altman of OpenAI and the chief executives of Nvidia, Microsoft and Alphabet are among technology-industry leaders joining a new federal advisory board focused on the secure use of AI within U.S. critical infrastructure, in the Biden administration's latest effort to fill a regulatory vacuum over the rapidly proliferating technology. From a report: The Artificial Intelligence Safety and Security Board is part of a government push to protect the economy, public health and vital industries from being harmed by AI-powered threats, U.S. officials said. Working with the Department of Homeland Security, it will develop recommendations for power-grid operators, transportation-service providers and manufacturing plants, among others, on how to use AI while bulletproofing their systems against potential disruptions that could be caused by advances in the technology.

In addition to Nvidia's Jensen Huang, Microsoft's Satya Nadella, Alphabet's Sundar Pichai and other leaders in AI and technology, the panel of nearly two dozen consists of academics, civil-rights leaders and top executives at companies that work within a federally recognized critical-infrastructure sector, including Kathy Warden, chief executive of Northrop Grumman, and Delta Air Lines Chief Executive Ed Bastian. Other members are public officials, such as Maryland Gov. Wes Moore and Seattle Mayor Bruce Harrell, both Democrats.

Microsoft releases one of the most popular versions of MS-DOS as open source today. stikves shares a post:Ten years ago, Microsoft released the source for MS-DOS 1.25 and 2.0 to the Computer History Museum, and then later republished them for reference purposes. This code holds an important place in history and is a fascinating read of an operating system that was written entirely in 8086 assembly code nearly 45 years ago.

Today, in partnership with IBM and in the spirit of open innovation, we're releasing the source code to MS-DOS 4.00 under the MIT license. There's a somewhat complex and fascinating history behind the 4.0 versions of DOS, as Microsoft partnered with IBM for portions of the code but also created a branch of DOS called Multitasking DOS that did not see a wide release.

An anonymous reader quotes a report from Wired: Network security appliances like firewalls are meant to keep hackers out. Instead, digital intruders are increasingly targeting them as the weak link that lets them pillage the very systems those devices are meant to protect. In the case of one hacking campaign over recent months, Cisco is now revealing that its firewalls served as beachheads for sophisticated hackers penetrating multiple government networks around the world. On Wednesday, Cisco warned that its so-called Adaptive Security Appliances -- devices that integrate a firewall and VPN with other security features -- had been targeted by state-sponsored spies who exploited two zero-day vulnerabilities in the networking giant's gear to compromise government targets globally in a hacking campaign it's calling ArcaneDoor.

The hackers behind the intrusions, which Cisco's security division Talos is calling UAT4356 and which Microsoft researchers who contributed to the investigation have named STORM-1849, couldn't be clearly tied to any previous intrusion incidents the companies had tracked. Based on the group's espionage focus and sophistication, however, Cisco says the hacking appeared to be state-sponsored. "This actor utilized bespoke tooling that demonstrated a clear focus on espionage and an in-depth knowledge of the devices that they targeted, hallmarks of a sophisticated state-sponsored actor," a blog post from Cisco's Talos researchers reads. Cisco declined to say which country it believed to be responsible for the intrusions, but sources familiar with the investigation tell WIRED the campaign appears to be aligned with China's state interests.

Cisco says the hacking campaign began as early as November 2023, with the majority of intrusions taking place between December and early January of this year, when it learned of the first victim. "The investigation that followed identified additional victims, all of which involved government networks globally," the company's report reads. In those intrusions, the hackers exploited two newly discovered vulnerabilities in Cisco's ASA products. One, which it's calling Line Dancer, let the hackers run their own malicious code in the memory of the network appliances, allowing them to issue commands to the devices, including the ability to spy on network traffic and steal data. A second vulnerability, which Cisco is calling Line Runner, would allow the hackers' malware to maintain its access to the target devices even when they were rebooted or updated. It's not yet clear if the vulnerabilities served as the initial access points to the victim networks, or how the hackers might have otherwise gained access before exploiting the Cisco appliances. Cisco advises that customers apply its new software updates to patch both vulnerabilities.

A separate advisory (PDF) from the UK's National Cybersecurity Center notes that physically unplugging an ASA device does disrupt the hackers' access. "A hard reboot by pulling the power plug from the Cisco ASA has been confirmed to prevent Line Runner from re-installing itself," the advisory reads.

Similar to the way Google makes its mobile OS Android open source, Meta announced it is opening up its Quest headset's operating system to rival device makers. Reuters reports: The move will allow partner companies to build their headsets using Meta Horizon OS, a rebranded operating system that brings capabilities like gesture recognition, passthrough, scene understanding and spatial anchors to the devices that run on it, the company said in a blog post. The social media company said partners Asus and Lenovo would use the operating system to build devices tailored for particular activities. Meta is also using it to make a limited edition version of the Quest headset "inspired by" Microsoft's Xbox gaming console, according to the company's statement. [...]

In a video posted on Zuckerberg's Instagram account, he previewed examples of specialized headsets partners might make: a lightweight device with sweat-wicking materials for exercise, an immersive high-resolution one for entertainment and another equipped with sensation-inducing haptics for gaming. Meta said in its blog post that ASUS' Republic of Gamers is developing a gaming headset and Lenovo is working on an MR device for productivity, learning, and entertainment using the Horizon OS. Zuckerberg said it may take a few years for these devices to launch. [...] Meta said the Meta Horizon OS includes Horizon Store, renamed from Quest Store, to download apps and experiences. The platform will work with a mobile companion app now called Meta Horizon app. While Google is reportedly working on an Android platform for VR and MR devices, Meta has called on Google to bring the Play Store to Quest, saying: "Because we don't restrict users to titles from our own app store, there are multiple ways to access great content on Meta Horizon OS, including popular gaming services like Xbox Game Pass Ultimate, or through Steam Link or our Air Link system for wirelessly streaming PC software to headsets. And we encourage the Google Play 2D app store to come to Meta Horizon OS, where it can operate with the same economic model it does on other platforms."

"Should Google bring the Play Store to Horizon OS, Meta says Google would be able to operate it on the 'same economic model' as it does on Android," notes 9to5Google. "In theory, that could actually represent a better payout for developers compared to what's been reported for Meta's store, but Meta does specifically say '2D app store,' implying VR/XR apps wouldn't be in the Play Store on Horizon OS."

According to the Wall Street Journal, a deal for IBM to acquire HashiCorp could materialize in the next few days. Shares of HashiCorp jumped almost 20% on the news.

UPDATE 4/24/24: IBM has confirmed the deal valued at $6.4 billion. "IBM will pay $35 per share for HashiCorp, a 42.6% premium to Monday's closing price," reports Reuters. "The acquisition will be funded by cash on hand and will add to adjusted core profit within the first full year of closing, expected by the end of 2024." HashiCorp's shares continued to surge Tuesday on the news. CNBC reports: Developers use HashiCorp's software to set up and manage infrastructure in public clouds that companies such as Amazon and Microsoft operate. Organizations also pay HashiCorp for managing security credentials. Founded in 2012, HashiCorp went public on Nasdaq in 2021. The company generated a net loss of nearly $191 million on $583 million in revenue in the fiscal year ending Jan. 31, according to its annual report. In December, Mitchell Hashimoto, co-founder of HashiCorp, whose family name is reflected in the company name, announced that he was leaving.

Revenue jumped almost 23% during that period, compared with 2% for IBM in 2023. IBM executives pointed to a difficult economic climate during a conference call with analysts in January. The hardware, software and consulting provider reports earnings on Wednesday. Cisco held $9 million in HashiCorp shares at the end of March, according to a regulatory filing. Cisco held early acquisition talks with HashiCorp, according to a 2019 report.

Just as Google, Samsung and Microsoft continue to push their efforts with generative AI on PCs and mobile devices, Apple is moving to join the party with OpenELM, a new family of open source large language models (LLMs) that can run entirely on a single device rather than having to connect to cloud servers. From a report: Released a few hours ago on AI code community Hugging Face, OpenELM consists of small models designed to perform efficiently at text generation tasks. There are eight OpenELM models in total -- four pre-trained and four instruction-tuned -- covering different parameter sizes between 270 million and 3 billion parameters (referring to the connections between artificial neurons in an LLM, and more parameters typically denote greater performance and more capabilities, though not always).

[...] Apple is offering the weights of its OpenELM models under what it deems a "sample code license," along with different checkpoints from training, stats on how the models perform as well as instructions for pre-training, evaluation, instruction tuning and parameter-efficient fine tuning. The sample code license does not prohibit commercial usage or modification, only mandating that "if you redistribute the Apple Software in its entirety and without modifications, you must retain this notice and the following text and disclaimers in all such redistributions of the Apple Software." The company further notes that the models "are made available without any safety guarantees. Consequently, there exists the possibility of these models producing outputs that are inaccurate, harmful, biased, or objectionable in response to user prompts."