Microsoft has announced its new Azure HBv5 virtual machines, featuring unique custom hardware made by AMD. CEO Satya Nadella made the announcement during Microsoft Ignite, introducing a custom-designed AMD processor solution that achieves remarkable performance metrics. The new HBv5 virtual machines deliver an extraordinary 6.9 TB/s of memory bandwidth, utilizing four specialized AMD processors equipped with HBM3 technology. This represents an eightfold improvement over existing cloud alternatives and a staggering 20-fold increase compared to previous Azure HBv3 configurations. Each HBv5 virtual machine boasts impressive specifications, including up to 352 AMD EPYC "Zen4" CPU cores capable of reaching 4 GHz peak frequencies. The system provides users with 400-450 GB of HBM3 RAM and features doubled Infinity Fabric bandwidth compared to any previous AMD EPYC server platform. Given that each VM had four CPUs, this yields 88 Zen 4 cores per CPU socket, with 9 GB of memory per core.

The architecture includes 800 Gb/s of NVIDIA Quantum-2 InfiniBand connectivity and 14 TB of local NVMe SSD storage. The development marks a strategic shift in addressing memory performance limitations, which Microsoft identifies as a critical bottleneck in HPC applications. This custom design particularly benefits sectors requiring intensive computational resources, including automotive design, aerospace simulation, weather modeling, and energy research. While the CPU appears custom-designed for Microsoft's needs, it bears similarities to previously rumored AMD processors, suggesting a possible connection to the speculated MI300C chip architecture. The system's design choices, including disabled SMT and single-tenant configuration, clearly focus on optimizing performance for specific HPC workloads. If readers can recall, Intel also made customized Xeons for AWS and their needs, which is normal in the hyperscaler space, given they drive most of the revenue.

Microsoft Corp. today announced the following results for the quarter ended September 30, 2024, as compared to the corresponding period of last fiscal year:

• Revenue was $65.6 billion and increased 16%
• Operating income was $30.6 billion and increased 14%
• Net income was $24.7 billion and increased 11% (up 10% in constant currency)
• Diluted earnings per share was $3.30 and increased 10%

"AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process," said Satya Nadella, chairman and chief executive officer of Microsoft. "We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage."

Intel Corp. (INTC) and AMD (NASDAQ: AMD) today announced the creation of an x86 ecosystem advisory group bringing together technology leaders to shape the future of the world's most widely used computing architecture. x86 is uniquely positioned to meet customers' emerging needs by delivering superior performance and seamless interoperability across hardware and software platforms. The group will focus on identifying new ways to expand the x86 ecosystem by enabling compatibility across platforms, simplifying software development, and providing developers with a platform to identify architectural needs and features to create innovative and scalable solutions for the future.

For over four decades, x86 has served as the bedrock of modern computing, establishing itself as the preferred architecture in data centers and PCs worldwide. In today's evolving landscape - characterized by dynamic AI workloads, custom chiplets, and advancements in 3D packaging and system architectures - the importance of a robust and expanding x86 ecosystem is more crucial than ever.

At GTC on Monday, Microsoft Corp. and NVIDIA expanded their longstanding collaboration with powerful new integrations that leverage the latest NVIDIA generative AI and Omniverse technologies across Microsoft Azure, Azure AI services, Microsoft Fabric and Microsoft 365.

"Together with NVIDIA, we are making the promise of AI real, helping to drive new benefits and productivity gains for people and organizations everywhere," said Satya Nadella, Chairman and CEO, Microsoft. "From bringing the GB200 Grace Blackwell processor to Azure, to new integrations between DGX Cloud and Microsoft Fabric, the announcements we are making today will ensure customers have the most comprehensive platforms and tools across every layer of the Copilot stack, from silicon to software, to build their own breakthrough AI capability."

"AI is transforming our daily lives - opening up a world of new opportunities," said Jensen Huang, founder and CEO of NVIDIA. "Through our collaboration with Microsoft, we're building a future that unlocks the promise of AI for customers, helping them deliver innovative solutions to the world."

Over the past few days, the OpenAI drama has continued to give more details about the relationship between OpenAI's board, employees, and even the executive layer of the company. As we have covered previously, the OpenAI board on last Friday, November 17, fired the company's CEO, Sam Altman. Over the weekend, Mr. Altman was approached by Microsoft CEO Satya Nadella and offered to lead the AI unit within the Redmond giant; however, the employment was not yet finalized. Today, we learned that Sam Altman has reached an agreement with the board to return to OpenAI along with Greg Brockman and many other OpenAI employees.

After starting a wave of posts on the X/Twitter platform saying, "OpenAI is nothing without its people," the employees of OpenAI signed a letter requesting the board to bring back Sam Altman. With the deal now happening, employees are expected to continue working for OpenAI under Sam Altman's leadership. The new initial board of OpenAI is composed of Bret Taylor (Chair), Larry Summers, and Adam D'Angelo. Sam Altman said in a post on X: "i love openai, and everything i've done over the past few days has been in service of keeping this team and its mission together. when i decided to join msft on sun evening, it was clear that was the best path for me and the team. with the new board and w satya's support, i'm looking forward to returning to openai, and building on our strong partnership with msft." While Microsoft CEO Satya Nadella added "We are encouraged by the changes to the OpenAI board. We believe this is a first essential step on a path to more stable, well-informed, and effective governance. Sam, Greg, and I have talked and agreed they have a key role to play along with the OAI leadership team in ensuring OAI continues to thrive and build on its mission. We look forward to building on our strong partnership and delivering the value of this next generation of AI to our customers and partners."

On Friday, the AI world was caught by storm as the board of directors of OpenAI, the maker of ChatGPT and other AI software, fired its CEO, Sam Altman. According to multiple sources reporting the state of OpenAI, Sam Altman was stunned by the board's decision of his removal, where the company published a public statement with many remarks, primarily informing the public that "Mr. Altman's departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI."

After Sam Altman's leave, Greg Brockman, president and co-founder of OpenAI, announced that he was also leaving the company. Satya Nadella, CEO of Microsoft, and other investors have stepped in to lead negotiations between the OpenAI board and Sam Altman to return to his position as the CEO of the non-profit company. However, according to The Information, Sam Altman will not be returning as the CEO, and instead, Emmett Shear will be appointed as the interim CEO of OpenAI. It is also reported that the departure of Sam Altman is now being followed by three senior researchers, Jakub Pachocki, Aleksander Madry, and Szymon Sidor, who have left the company to follow Sam Altman's next adventure. They wanted to go back to OpenAI if Mr. Altman would return; however, with Emmett Shear now being appointed as interim CEO, the company is in shambles with its senior staff employment in question.Update 15:30 UTC: Sam Altman has joined Microsoft alongside Greg Brockman to lead Microsoft's advanced AI research efforts; additionally with hundreds of OpenAI staff wanting to do projects under Sam Altman's lead. Apparently there are 700 members of staff, and 505 of them plan to follow Mr. Altman and Mr. Brockman under Microsoft's wing.

Panos Panay, Microsoft's chief product officer—where he has lead development on Windows (since 2020) and the company's Surface device product line (from the start)—is leaving the American multinational technology corporation. He made it official on X this afternoon: "After 19 incredible years at Microsoft, I've decided to turn the page and write the next chapter. I'm forever grateful for my time at Microsoft and the amazing people I had the honor to make products with." In an email sent to employees, Rajesh Jha (vice president of experience and devices) said: "After nearly 20 years at the company, Panos Panay has decided to leave Microsoft. Panos has had an incredible impact on our products and culture as well as the broader devices ecosystem. Under Panos' leadership, the team created the iconic Surface brand with loved products. More recently, as the leader of Windows, the team has brought amazing services and experiences to hundreds of millions with Windows 11 on innovative devices including those from our OEM partners. He will be missed, and I am personally very grateful for his many contributions over the years. Please join me in wishing him well."

A press release regarding the high-level departure was released to media outlets not long ago—Microsoft CEO Satya Nadella had some kind words: "Thank you, Panos, for your impact on our products, culture, company, and industry over the past two decades. I'm grateful for your leadership, support, and all you've done for Microsoft and our customers and partners. We remain steadfast and convicted in our strategy, and Yusuf Mehdi will take lead on our Windows and Surface businesses and products externally." Mehdi is the current Corporate Vice President & Consumer Chief Marketing Officer, perhaps best known for producing a lot of his company's big artificial intelligence announcements. Microsoft is expected to reveal a bunch of next-gen Surface models later this week—will the new boss be in attendance?

Microsoft Corp. today announced the following results for the quarter ended June 30, 2023, as compared to the corresponding period of last fiscal year:

• Revenue was $56.2 billion and increased 8% (up 10% in constant currency)
• Operating income was $24.3 billion and increased 18% (up 21% in constant currency)
• Net income was $20.1 billion and increased 20% (up 23% in constant currency)
• Diluted earnings per share was $2.69 and increased 21% (up 23% in constant currency)

"Organizations are asking not only how - but how fast - they can apply this next generation of AI to address the biggest opportunities and challenges they face - safely and responsibly," said Satya Nadella, chairman and chief executive officer of Microsoft. "We remain focused on leading the new AI platform shift, helping customers use the Microsoft Cloud to get the most value out of their digital spend, and driving operating leverage."

Today, we are announcing the third phase of our long-term partnership with OpenAI through a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world.

This agreement follows our previous investments in 2019 and 2021. It extends our ongoing collaboration across AI supercomputing and research and enables each of us to independently commercialize the resulting advanced AI technologies.

Amidst the global economic downturns, Microsoft is reportedly joining other tech giants in reducing the amount of the company's working staff. According to Sky News, citing its sources, Microsoft will lay off as many as 5% of its workers. The company's massive team of over 220,000 employees will affect a large group estimated to be close to 11,000 people. In addition, Sky News' Wall Street Analyst source suggests that the people familiar with the matter would not be surprised if the reported figure is higher. If finalized, the decision is expected to be made official by Microsoft's chairman and CEO, Satya Nadella, on January 24.

The company's current market capitalization is $1.79 trillion, making it one of the world's most valuable companies. However, more than the investment in expanding Azure cloud services is needed to offset the stagnating consumer segment where Microsoft dominates with its Windows and Office services, so the company is forced to cut a part of its workforce. We don't have exact details on which segment is getting the highest deduction in staff; however, we expect to hear more at the company's Q4 2022 results call on January 24.

Microsoft Corp. today announced the following results for the quarter ended June 30, 2022, as compared to the corresponding period of last fiscal year:

• Revenue was $51.9 billion and increased 12% (up 16% in constant currency)
• Operating income was $20.5 billion and increased 8% (up 14% in constant currency)
• Net income was $16.7 billion and increased 2% (up 7% in constant currency)
• Diluted earnings per share was $2.23 and increased 3% (up 8% in constant currency)

"We see real opportunity to help every customer in every industry use digital technology to overcome today's challenges and emerge stronger," said Satya Nadella, chairman and chief executive officer of Microsoft. "No company is better positioned than Microsoft to help organizations deliver on their digital imperative - so they can do more with less."

Microsoft CEO Satya Nadella took to the Build Conference to announce "an imminent announcement" on the "next generation of Windows". The Microsoft CEO said that we should be expecting news on a revamped Windows experience that aims to be "one of the most significant updates to Windows of the past decade to unlock greater economic opportunity for developers and creators". There was no word on when we can expect such an announcement - or even available deployment of such version of windows - but considering this was done during the Build Conference, it makes sense that we actually won't be hearing about this until after the end of the Conference.

It's expected that this "next generation of Windows" comes with a revamped Windows store experience - which we already know Microsoft was prioritizing as of late. At the same time, the new version of windows could possess a radical new interface aesthetic redesign, pushing it more into the digital render space we've been slowly walking towards. Whatever this update actually encompasses, according to Satya Nadella, we won't have to wait too long for it. Look after the break for the excerpt on the release of this "new Windows".

Sony Corporation (Sony) and Microsoft Corp. (Microsoft) announced on Thursday that the two companies will partner on new innovations to enhance customer experiences in their direct-to-consumer entertainment platforms and AI solutions.

Under the memorandum of understanding signed by the parties, the two companies will explore joint development of future cloud solutions in Microsoft Azure to support their respective game and content-streaming services. In addition, the two companies will explore the use of current Microsoft Azure datacenter-based solutions for Sony's game and content-streaming services. By working together, the companies aim to deliver more enhanced entertainment experiences for their worldwide customers. These efforts will also include building better development platforms for the content creator community.

Microsoft launched Xbox Game Pass in June 2017. This video game subscription service allows users to install and play Xbox games (not just Xbox One ones, there are titles from the Xbox 360 and even the original Xbox) , with over 230 games currently available, a number that is constantly growing. Often called 'The Netflix of video games', the service has been improving its offering, but now the project will go beyond it's initial focus. Satya Nadella, Microsoft CEO, announced during an investor meeting that Xbox Game Pass will come to PCs soon.

Nadella gave no further details, so we still don't know what games will be included on that service or the subscription price (currently $9.99/month), but the announcement is promising and another sign that the company is moving forward to expand their reach and, of course, their earnings. On the latest earnings release (FY19 Q1) Microsoft pointed out how gaming revenue "increased 44% with Xbox software and services revenue growth of 36% mainly from third-party title strength". This move could make that growth go even higher, and it joins other recent announcements that could improve Microsoft's role in this market.

Microsoft Corp. today announced the following results for the quarter ended September 30, 2018, as compared to the corresponding period of last fiscal year:

• Revenue was $29.1 billion and increased 19%
• Operating income was $10.0 billion and increased 29%
• Net income was $8.8 billion and increased 34%
• Diluted earnings per share was $1.14 and increased 36%

"We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation," said Satya Nadella, chief executive officer of Microsoft. "We're excited to help our customers build the digital capability they need to thrive and grow, with a business model that is fundamentally aligned to their success."

Microsoft at its Build conference today announced one of the better use cases for AI yet: to empower those with disabilities. Dubbed the AI for Accessibility Initiative, this Microsoft program will see $25 million dollars being deployed across five years to further research and development to specifically target challenges faced by people with disabilities in three key areas: human connection, employment and modern life. The $25 million budget will be used by Microsoft as seed grants for developers, universities, institutions and other Microsoft partners, with the Redmond-based Microsoft pledging to also further invest - and scale up - development for key promising ideas that are birthed from this project. The AI bit comes from its implementation in inclusive design scenarios, scaling it up through platforms, services, and different solutions.

Further, Microsoft will help partners include accessibility solutions on their products, which could allow for a base model for accessibility technologies on families of products. Microsoft President Brad Smith said there are about a billion people around the world with some kind of disability, either temporary or permanent, and it's for these people, and those that will come after, that Microsoft is committing to this investment.