Tag: Microsoft

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Corporate

OpenAI, Microsoft reset partnership terms

OpenAI and Microsoft have updated the terms of their high-profile partnership, signalling a new chapter in one of the most influential relationships in the artificial intelligence industry.

The revised agreement gives both companies greater flexibility at a time when the global AI race is accelerating and demand for computing power is rising sharply.

Microsoft will continue as a major cloud partner for OpenAI, but it will no longer be the exclusive provider of infrastructure. That means OpenAI can now work with other cloud companies when needed, helping it secure more capacity to train and run advanced AI systems.

For OpenAI, this is an important shift. Since the success of ChatGPT, the company has grown rapidly and needs huge amounts of computing resources to support users, developers and businesses around the world.

The new structure may help OpenAI expand faster while reducing dependence on a single partner.

For Microsoft, the reset allows it to maintain close ties with OpenAI while also creating more room to develop its own AI strategy.

Microsoft has already integrated OpenAI technology into products such as Copilot, Azure services and workplace software, making the partnership central to its recent AI push.

The companies have also reportedly adjusted financial arrangements and removed earlier clauses tied to future advanced AI scenarios, simplifying what had become a complex long-term relationship.

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1 Minute-Read

Meta, Microsoft cut jobs in AI shift

Meta and Microsoft have announced job cuts as they shift focus toward artificial intelligence and restructuring. Meta plans to reduce about 8,000 jobs, around 10% of its workforce, while also closing several unfilled roles to improve efficiency.

Microsoft is offering voluntary buyouts to nearly 7% of its US employees as part of internal restructuring, mainly targeting senior staff. Both companies are increasing spending on AI infrastructure, data centres and new technologies.

The decision reflects a wider trend in Big Tech, where firms are cutting costs while aggressively investing in AI development.

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Technology

Windows 11 updates get user-friendly makeover

Microsoft is making Windows 11 updates less disruptive by giving users more control over when updates are installed and when their computers restart.

The changes come after years of complaints from users who said forced updates often interrupted work, meetings, gaming sessions and important tasks.

Under the new system, users will be able to pause updates for longer periods and extend those pauses when needed. This means people can choose a more convenient time to install updates instead of being pushed into immediate downloads.

Microsoft is also improving restart options. Even when updates are waiting, users will be able to shut down or restart their computers without being forced to install updates right away.

Another useful change is during the setup of a new PC. Users will now have the option to skip updates during the initial setup process and complete them later, helping them start using the device faster.

The company is also working on smarter update delivery so multiple updates can be combined, reducing the number of restarts required.

Microsoft said the changes are based on customer feedback and are designed to make Windows smoother to use while still keeping devices secure and up to date.

The features are currently being tested with Windows Insider users and are expected to roll out to more users in upcoming Windows 11 updates.

Tech experts said the move reflects a more user-friendly approach from Microsoft. Instead of forcing updates at inconvenient times, the company now appears focused on giving people flexibility while maintaining system security.

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Corporate

Microsoft launches voluntary retirement scheme for US employees

Microsoft has introduced its first-ever voluntary retirement (buyout) programme in its 51-year history, offering eligible US employees an option to leave the company with a financial package. The move is expected to affect up to 7% of Microsoft’s US workforce, or roughly 8,000–8,750 employees.

According to internal communications, the programme is aimed at employees at the senior director level and below whose age and years of service combined equal 70 or more. For example, an employee aged 55 with 15 years at the company would qualify. Certain roles, including some sales positions, are excluded.

The company said the initiative is intended to give long-serving employees a voluntary and supported exit option, rather than relying on traditional layoffs. Eligible staff and managers will receive full details in early May.

The move comes at a time when Microsoft, like several other major tech firms, is undergoing structural changes driven by heavy investment in artificial intelligence and cloud infrastructure. The company has been spending billions to expand data centre capacity and AI capabilities, while also tightening operational costs elsewhere.

In recent years, Microsoft has already gone through multiple rounds of job cuts. This new buyout programme is seen as another step in reorganising its workforce to better align with long-term strategic priorities, especially AI-focused growth.

At the same time, Microsoft is also adjusting its compensation structure, including changes to how stock awards are distributed and giving managers more flexibility in rewarding performance.

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Technology

Microsoft to end Outlook Lite app

Microsoft has decided to discontinue its Outlook Lite, with the service set to shut down on May 25, 2026, as part of its broader strategy to streamline products.

Outlook Lite was built as a low-resource alternative for emerging markets, offering essential email features with minimal data usage. Its discontinuation signals a shift toward a unified app ecosystem centred around the main Outlook Mobile platform.

Microsoft has been gradually phasing out the app, including halting new downloads and encouraging existing users to migrate. Post shutdown, the Lite app will no longer support any functionality.

The company says the transition will not affect user data, as all information remains cloud-based and accessible via the primary app. The move highlights Microsoft’s focus on enhancing performance, security, and feature integration through a single, standardised application.

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Leaders

Microsoft executive VP Rajesh Jha to retire in July

Microsoft has announced that senior executive Rajesh Jha will retire in July 2026, ending a long career of more than three decades at the technology company. His departure will also lead to several leadership changes within the organisation.

Jha currently serves as Executive Vice President of Microsoft’s Experiences and Devices division. The unit manages some of the company’s most widely used products, including the Windows operating system, Microsoft 365 applications such as Word, Excel and Teams, and the Surface range of devices.

According to the company, Jha will step down from his role on July 1. After retiring, he is expected to stay on for a short period in an advisory role to help ensure a smooth leadership transition.

Jha joined Microsoft over 30 years ago and worked his way up through different roles in engineering and product development. During his time at the company, he played an important role in building and expanding several key products. He helped lead the development of enterprise tools such as Exchange and SharePoint and later worked on transforming the Office software suite into the cloud-based Microsoft 365 platform used by millions of people worldwide.

In recent years, Jha also helped drive the integration of artificial intelligence features into Microsoft’s productivity products, which has become a major focus for the company.

Following his retirement announcement, Microsoft said it will reorganise parts of its leadership structure. Instead of appointing a direct replacement for Jha, some senior executives will report directly to CEO Satya Nadella.

These include leaders responsible for Windows, Surface devices, LinkedIn, Microsoft 365 and other key products. The company has also promoted several executives to new roles as part of the restructuring.

Nadella praised Jha’s contributions, saying he played a major role in shaping Microsoft’s products and helping the company grow over the years.

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Technology

Microsoft teams up with Anthropic to expand Copilot AI

Microsoft has partnered with artificial intelligence startup Anthropic to strengthen its workplace AI assistant Microsoft Copilot. The collaboration is part of Microsoft’s efforts to develop more advanced AI systems that can perform tasks independently for users.

Under the partnership, Microsoft will introduce a new feature called Copilot Cowork, which will use Anthropic’s AI technology to help automate everyday work activities. The tool is designed to handle tasks such as analysing data, organising documents, preparing presentations and managing spreadsheets.

The new system focuses on the development of AI agents, software tools that can complete tasks automatically instead of simply responding to questions. These AI agents are expected to assist employees in handling routine work and improving productivity.

Anthropic is known for developing advanced AI models such as Claude, which are capable of handling complex instructions and building applications. By integrating these models into Copilot, Microsoft aims to expand the capabilities of its workplace AI tools.

The feature will initially be tested with a limited group of users before being rolled out more widely. Microsoft said the service will run through its cloud systems and include strong security controls to protect enterprise data.

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Leaders

Asha Sharma appointed CEO of Microsoft Gaming

Asha Sharma has been appointed Executive Vice President and CEO of Microsoft Gaming, the company announced on February 20, 2026. Reporting directly to CEO Satya Nadella, Sharma will lead Xbox, Xbox Game Studios, Activision Blizzard, Bethesda, King and Microsoft’s wider gaming efforts. The move follows Phil Spencer’s decision to step back from day-to-day leadership; Spencer will remain in an advisory capacity through the summer to support the transition.

Sharma arrives with experience scaling consumer platforms and operations, including senior roles at Instacart and Meta. Microsoft highlighted her track record building large ecosystems and reaching broad audiences as a key reason for the hire, saying those skills will help grow the company’s platform, content and community across console, PC and mobile. The gaming organization she inherits includes nearly 40 internal studios and a portfolio of well-known franchises that reach hundreds of millions of players.

As part of the leadership reshuffle, Matt Booty has been promoted to Executive Vice President and Chief Content Officer and will report to Sharma. Booty will continue to oversee studio operations and creative strategy, focusing on content development, studio investment and the company’s long-term creative roadmap. Microsoft framed the changes as a planned succession designed to maintain momentum across hardware, cloud services and content while preparing for the next phase of growth in gaming.

In her first public statement as incoming CEO, Sharma set out three priorities: invest in great games, renew focus on Xbox and its core fans, and shape the future of play by supporting creative teams and building platforms and tools that let developers reach players across devices. She stressed the importance of protecting creative craft and cautioned against short-term monetization approaches that could erode player trust.

Microsoft thanked Phil Spencer for his decades of service and for guiding the business through major expansions and acquisitions that reshaped its gaming strategy. The company said the leadership change positions Microsoft to accelerate studio investment, expand content offerings and deepen engagement with players worldwide as gaming continues to evolve across devices and cloud services.

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Technology

Microsoft sees Copilot AI boom, costs worry investors

Microsoft CEO Satya Nadella defended the company’s ambitious AI strategy during the latest earnings call, highlighting strong growth in its Copilot AI products even as some investors voiced caution over rising costs and slower cloud performance.

For the quarter ending December 2025, Microsoft reported revenue of $81.3 billion and a 21 % increase in net income, driven primarily by cloud sales. Despite these strong results, Microsoft shares fell, as Wall Street focused on the company’s massive capital expenditures for AI infrastructure and data centres, alongside slightly softer growth in Azure and Microsoft 365 revenues than expected.

Nadella emphasised that demand for AI far exceeds current capacity, framing heavy spending as an investment in future growth. He reported that daily usage of Copilot AI products has nearly tripled year-over-year. Microsoft 365 Copilot now boasts 15 million paid seats, while GitHub Copilot has 4.7 million paid subscribers, reflecting strong adoption across both corporate and developer environments.

Beyond office productivity tools, Nadella highlighted specialised AI applications, such as Dragon Copilot for healthcare, which has been used in millions of patient encounters. This demonstrates Microsoft’s strategy to expand AI adoption across multiple sectors, not just within its core software suite.

Despite these positive usage trends, some investors remain cautious. Analysts note that while AI adoption is strong, Azure’s growth pace has slowed slightly, and the cost of building AI infrastructure may pressure margins if adoption growth does not keep pace.

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Beyond

Trump pushes Microsoft on data centre costs

US President Donald Trump has directed Microsoft to ensure its rapidly expanding artificial intelligence (AI) data centres do not raise electricity costs for Americans. Speaking on January 13, 2026, Trump emphasized that large technology companies must bear their own energy expenses instead of passing them onto residential households. He called on Microsoft to take “major steps” to prevent utility price hikes linked to its operations.

In response, Microsoft announced its “Community‑First AI Infrastructure” initiative, designed to address energy, environmental, and community concerns related to its data facilities. The initiative includes several commitments: the company will pay full electricity costs, ensure water usage is minimized and replenished, hire locally for construction and operational jobs, pay full property taxes without seeking incentives, and invest in community AI education and training through schools, colleges, and libraries.

The announcement comes amid growing public and political scrutiny. Residents in several states have criticized data centre projects for driving up utility bills, consuming large amounts of water, and putting pressure on local infrastructure. Some projects, including a planned Microsoft facility in Wisconsin, were paused after local opposition and activist campaigns.

Microsoft also said it will coordinate with utility companies and state regulators to fund necessary grid upgrades through commercial rates, ensuring that residential customers are not affected. Officials stressed that the program is designed to provide economic, educational, and environmental benefits to host communities while supporting the company’s AI expansion.

Analysts say the move reflects broader concerns about balancing AI innovation with community and environmental protection. As data centres grow to meet the increasing demand for AI services, tech companies are under closer scrutiny to ensure they do not negatively impact local residents or ecosystems.

Trump’s intervention marks a rare public instance of a U.S. president directly influencing corporate operations in the tech sector. The announcement is seen as a signal to other tech firms that they may face similar accountability demands, particularly as AI technology expands rapidly and its infrastructure footprint grows.

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