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Amid a flurry of hype, Microsoft reorganizes ENTIRE Dev team around AI

erek

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"Microsoft CEO Satya Nadella has announced a dramatic restructuring of the company's engineering organization, which is pivoting the company's focus to developing the tools that will underpin agentic AI.

Dubbed "CoreAI - Platform and Tools,""

--
"Microsoft is planning job cuts and focusing more on underperforming employees
The moves are part of a broader change in Microsoft's approach, which includes taking a harder look at low performers, sources told BI."

Source: https://arstechnica.com/gadgets/202...rosoft-reorganizes-entire-dev-team-around-ai/
 
i really wish they would slow down on this shit. half of whats already out doesnt work properly and is programmed by idiots.
But at the same time, I would really like it if Microsoft updated most of their add-ons and plugins for O365 to make better use of Copilot.
Powerword Automate and Dynamics with Copilot support would be huge.
But think on the OS level itself, so much of the hardware in most computers sits idle most of the time, making better use of it for all tasks would be a massive win for everybody.

And think of all the bad and outdated documentation Microsoft likely has all over its projects, having an AI trained to dig through code bases to point out flaws or inefficiencies like Nvidia is doing for their drivers, there are lots of ways that Microsoft could use AI to do all the things that the human employees should do but ultimately don't or can't.

Project and code documentation is one of the things that always gets forgotten despite the intentions of the developers and it always bites somebody in the ass at some point, and searching for optimizations or redundancies? Windows 11 has some 50 million lines of code, but that isn't something a human team is searching through because in the time it would take them to do it a thousand changes for patches or updates would have invalidated the entire effort. And the amount of contextual knowledge any one person on that team would require to properly do the job would make putting them on the job a waste of resources.
 
"A week after announcing performance-based job cuts similar to those at Meta, Microsoft said it also plans to pause hiring in part of its consulting unit. CNBC reports"

"The memo also instructs employees to not expense travel for any internal meetings and use remote sessions instead. Additionally, executives will have to authorize trips to customers' sites to ensure spending is being used on the right customers, Danois wrote. Additionally, the group will cut its marketing and non-billable external resource spend by 35%, the memo says.Further reading: Companies Deploy AI To Curb Hiring as 'Cost Avoidance' Gains Ground"
 
"A week after announcing performance-based job cuts similar to those at Meta, Microsoft said it also plans to pause hiring in part of its consulting unit. CNBC reports"

"The memo also instructs employees to not expense travel for any internal meetings and use remote sessions instead. Additionally, executives will have to authorize trips to customers' sites to ensure spending is being used on the right customers, Danois wrote. Additionally, the group will cut its marketing and non-billable external resource spend by 35%, the memo says.Further reading: Companies Deploy AI To Curb Hiring as 'Cost Avoidance' Gains Ground"
I’ve had a few of them visit me in recent years and even in the meetings that resulted in increased licenses the annual fees that increased will likely take more than a few years just to break even on the flights for them to get here let alone the on boarding and training they provided.

If their onsite sales teams are blowing that for remote sites like me then I have to assume they are doing far worse elsewhere.
 
Actually, what would be hilarious is if Microsoft AI fixes Windows 11 so that it's basically Windows 10, and the higher ups get so angry at the changes that they try to turn off the AI, but they get laid off, instead, and Windows 11 with the AI changes get so popular, everyone on Windows 10 upgrades.
 
But at the same time, I would really like it if Microsoft updated most of their add-ons and plugins for O365 to make better use of Copilot.
Powerword Automate and Dynamics with Copilot support would be huge.
But think on the OS level itself, so much of the hardware in most computers sits idle most of the time, making better use of it for all tasks would be a massive win for everybody.

And think of all the bad and outdated documentation Microsoft likely has all over its projects, having an AI trained to dig through code bases to point out flaws or inefficiencies like Nvidia is doing for their drivers, there are lots of ways that Microsoft could use AI to do all the things that the human employees should do but ultimately don't or can't.

Project and code documentation is one of the things that always gets forgotten despite the intentions of the developers and it always bites somebody in the ass at some point, and searching for optimizations or redundancies? Windows 11 has some 50 million lines of code, but that isn't something a human team is searching through because in the time it would take them to do it a thousand changes for patches or updates would have invalidated the entire effort. And the amount of contextual knowledge any one person on that team would require to properly do the job would make putting them on the job a waste of resources.
Only problem with all that is the US needs to build at least 100 nuclear power plants nationwide to support all that.
 
So they're putting most of their eggs in one basket... that'll either go really well for them or really bad. My guess is bad.
I don't think it's necessarily even whether they go all-in with something, as Microsoft has tried in the past to focus on broad market tech like phone OSes, search, chat and even tablets and failed to become dominant (or even for the products to survive).

They have certain strengths but idk if it's culturally or what but even with huge resources they haven't pulled off what smaller companies have. Maybe their AI push will be different.
 
Only problem with all that is the US needs to build at least 100 nuclear power plants nationwide to support all that.
I heard they're reviving block 1 of the Three Mile Island plant, which is pretty cool (unironically).
More reactors should yield more Uranium mining/processing which should yield more feasibility for even more reactors.

More power should yield a nice long blockchain, ending with a neato lightshow once someone fucks up! (ironically)
 
For those unaware, Copilot was trained on all public GitHub repositories ignoring their licenses, including those that explicitly require attribution or even source disclosure for all derivatives.

ZvTcHzWEmA.png
 
For those unaware, Copilot was trained on all public GitHub repositories ignoring their licenses, including those that explicitly require attribution or even source disclosure for all derivatives.

View attachment 703966
If it ends up in court, I feel like it would be a huge stretch to make MS liable. Personally, I hate all intellectual property laws. Markets exist for limited resources. Unlimited fungible things like ideas being treated as scarce strictly by law is absurd.
 
To no surprise, after a week, the humans on the dev team were let go for efficiency reasons.
 
I don't think it's necessarily even whether they go all-in with something, as Microsoft has tried in the past to focus on broad market tech like phone OSes, search, chat and even tablets and failed to become dominant (or even for the products to survive).

They have certain strengths but idk if it's culturally or what but even with huge resources they haven't pulled off what smaller companies have. Maybe their AI push will be different.

Microsoft's advantages in artificial intelligence evaporate — Google Gemini surges ahead, and OpenAI declares "code red" situation​

News
By Jez Corden published 3 hours ago
Microsoft was an early success story in AI, with one of the most savvy start-up investments in tech history. However, those advantages have rapidly eroded as Google surges ahead.

The last couple of weeks have seen Google Gemini surge ahead. The latest Google models, namely Gemini 3, have OpenAI's ChatGPT-5 beaten in many performance tests. ChatGPT and by extension, the ChatGPT-powered Microsoft Copilot on the backfoot. Google's new Nano Banana Pro image generation tools are also running rings around DALLE and other competitors too. OpenAI is reportedly in panic mode.


Reported early this morning by The Information and corroborated by WSJ and Business Insider, OpenAI CEO Sam Altman has reportedly shelved plans to bake ads into ChatGPT to focus on beating Google Gemini.

Altman shared a memo with staff reportedly, warning that Google Gemini represented a serious existential threat to the entire company. To that end, OpenAI has cancelled planned marketing campaigns, ad experiments, agentic features, and other monetization layers to focus on improving its models. Altman reportedly said that growth could slow to the "single digits" through 2026, as it doubles down on investing in leapfrogging a resurgent Google.

Just last week, HSBC and others offered a bleak outlook on OpenAI's business model, as it bleeds out cash like a wounded animal, with even optimistic analyses suggest it will need hundreds of billions to stay afloat.

OpenAI had been setting aside cash specifically to grow its monetization layers, which is arguably desperately needs if it plans to service the $1.4 trillion (with a T) in compute commitments it has made to companies like Oracle and Softbank over the next decade.

Analysis: I hate to bring up Windows Phone again ... but ...​

The inability for Nokia and Windows to operate smoothly together meant competitors could more easily forge ahead, polishing the software stack and baking in interoperability that locked users into entire ecosystems. For whatever reason, Microsoft CEO Satya Nadella has always neglected the physical aspect of Microsoft's ecosystem, forgetting that, you know, users need an actual endpoint to interact with its products. It's hard to not draw parallels between Nokia and Microsoft and OpenAI and Microsoft — which both rely upon and seemingly work against each other.

OpenAI and Microsoft aren't working directly together to bring features directly to users. OpenAI is barely supporting Windows, opting instead to support Mac first inexplicably. Microsoft's own AI tools are half-baked at best, irritating at worst. Microsoft has no control over the defaults on iPhone or Android, meaning its tools will never see use on mobile, and by extension, won't be able to harvest the necessary data to improve either.

https://www.windowscentral.com/arti...-ahead-and-openai-declares-code-red-situation
 
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Microsoft's advantages in artificial intelligence evaporate — Google Gemini surges ahead, and OpenAI declares "code red" situation​

News
By Jez Corden published 3 hours ago
Microsoft was an early success story in AI, with one of the most savvy start-up investments in tech history. However, those advantages have rapidly eroded as Google surges ahead.

The last couple of weeks have seen Google Gemini surge ahead. The latest Google models, namely Gemini 3, have OpenAI's ChatGPT-5 beaten in many performance tests. ChatGPT and by extension, the ChatGPT-powered Microsoft Copilot on the backfoot. Google's new Nano Banana Pro image generation tools are also running rings around DALLE and other competitors too. OpenAI is reportedly in panic mode.


Reported early this morning by The Information and corroborated by WSJ and Business Insider, OpenAI CEO Sam Altman has reportedly shelved plans to bake ads into ChatGPT to focus on beating Google Gemini.



Analysis: I hate to bring up Windows Phone again ... but ...​

The inability for Nokia and Windows to operate smoothly together meant competitors could more easily forge ahead, polishing the software stack and baking in interoperability that locked users into entire ecosystems. For whatever reason, Microsoft CEO Satya Nadella has always neglected the physical aspect of Microsoft's ecosystem, forgetting that, you know, users need an actual endpoint to interact with its products. It's hard to not draw parallels between Nokia and Microsoft and OpenAI and Microsoft — which both rely upon and seemingly work against each other.

OpenAI and Microsoft aren't working directly together to bring features directly to users. OpenAI is barely supporting Windows, opting instead to support Mac first inexplicably. Microsoft's own AI tools are half-baked at best, irritating at worst. Microsoft has no control over the defaults on iPhone or Android, meaning its tools will never see use on mobile, and by extension, won't be able to harvest the necessary data to improve either.

https://www.windowscentral.com/arti...-ahead-and-openai-declares-code-red-situation
I think you mean irritating at best and very actively harmful at worst. My first "meaningful" interaction with CoPilot was very early this morning when considering where to buy a 5090 and whether to use the edge browser from some cashback (first on-purpose time using Edge). The simple question of asking CoPilot how much cash back would I get for using Edge and the Cashback program to purchase a 5090 from Best Buy returned no accurate information for the dollar amount. CoPilot in Edge couldn't even properly tell me about other features of Edge and Microsoft.
 
chatGPT model capacity versus gemini 3 (they are extremelly close) is the least of the problems with Microsoft AI experience, Cursor is not more working directly with AI model provider than Microsoft is for sure, yet it is beating it with a Microsoft based code fork and it is not like MIcrosoft can realistically re-renter the phone game
 
The best thing they can do with AI is help find certain settings because they keep moving these around all the time. There is a use for AI just not in the OS itself.
 
They have to do something to justify the massive AI spending, which has yet to get remotely close to paying for itself.
 
They have to do something to justify the massive AI spending, which has yet to get remotely close to paying for itself.
MIcrosoft AI spending seem to be on track to way more than pay for itself, that why they beat records in their last quarters...

Microsoft Annual Operating Income
(Millions of US $)
2025$128,528
2024$109,433
2023$88,523
2022$83,383

They are more an infrastructure provider, with a 40% year-over-year growth pace because of all the demand for it. The people buying from Microsoft all that compute that could be a different story.
 
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