Technologies

Windows Copilot Puts AI in the Heart of Microsoft’s Most Important Software

Some of the most important screen real estate in the world is getting a chatbot that can adjust PC settings, perform searches and suggest music.

With a tool called Windows Copilot, Microsoft has begun building an AI chat interface straight into its single most important software product, the company said Tuesday. The tool will perform tasks like summarizing documents, suggesting music, offering tech support for your PC and answering questions you might ask a search engine or AI chatbot.

This newest of Microsoft’s AI tools is scheduled to arrive in a preview version of Windows via an icon in the task bar that looks like a loop of blue ribbon. Clicking it opens a chat interface sidebar where you can type questions or prompts like «enable dark mode» and click buttons to take actions. Microsoft will begin testing the feature in June, said Yusuf Mehdi, Microsoft’s marketing chief for consumer products.

It’s a major new step in Microsoft’s embrace of artificial intelligence technology. Previously the company had built AI into its Bing search engine and Edge web browser, but Windows is used by millions more people and for many more hours a day.

«We are bringing the Copilot to the biggest canvas of all, Windows,» CEO Satya Nadella said at the company’s Microsoft Build developer conference. The arrival of AI chat interfaces is as important to computing progress as other major moments, like the arrival of the internet or the iPhone, he said.

And the change reflects a growing seriousness in modern AI. Google has begun building AI directly into search, Gmail, Docs and other key services used by billions of people. Adobe on Tuesday released a beta version of Photoshop that uses AI to generate new imagery. AI remains experimental, but no longer is AI on the periphery of the world’s biggest tech products.

Watch this: See Everything Announced at Microsoft Build 2023

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Microsoft also is building its Copilot technology into its Office suite of productivity tools.

Google has taken a different approach with its AI, restricting its more freewheeling chatbot technology to its Bard chatbot and adding more factual, literal tools to search, Gmail and other mainstream tools.

Mehdi thinks that’s a mistake, though. Indeed, he hopes Google keeps the functions separate because that’ll help Microsoft’s prospects, he said.

«Customers have told us they’re not a separate thing. They think it’s all integrated,» Mehdi said in an interview. «The ability to be able to ask any question from where you are, to get searchlike answers, that’s a powerful thing for customers.»

He’s also excited to see it help with a profound user interface problem common in the tech world: helping nonexperts just figure out how to do useful things like snap an app window to one side of their laptop’s screen.

«The number one feature of Windows that people have loved is snap. Even then, people still have trouble knowing how to do it,» Mehdi said. «But if you can now say, ‘Hey, snap a couple of windows for me,’ and the PC can do it, that’s a massive unlock for people.»

Microsoft added AI-boosted search results and an AI chatbot to its Bing search engine in February. It relies on OpenAI, an artificial intelligence powerhouse in which Microsoft has invested, for the core language processing technology. Thanks in part to the feature, Bing usage crossed the threshold of 100 million people per day, Mehdi said, though he wouldn’t reveal the pace of the growth.

Also at Build, Microsoft announced it’s making plugin technology available to Bing and Windows Copilot so developers can integrate their own software. That’ll let you tap into those apps using Microsoft’s AI interfaces.

And Microsoft announced that OpenAI is using Bing search engine data to help improve its ChatGPT chatbot. Search engines can be used to «ground» generative AI tools that can often make up incorrect information.

Editors’ note: CNET is using an AI engine to create some personal finance explainers that are edited and fact-checked by our editors. For more, see this post.

Watch this: Windows 11 Gets AI Copilot

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Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know