microsoft

report:-sam-altman-seeking-trillions-for-ai-chip-fabrication-from-uae,-others

Report: Sam Altman seeking trillions for AI chip fabrication from UAE, others

chips ahoy —

WSJ: Audacious $5-$7 trillion investment would aim to expand global AI chip supply.

WASHINGTON, DC - JANUARY 11: OpenAI Chief Executive Officer Sam Altman walks on the House side of the U.S. Capitol on January 11, 2024 in Washington, DC. Meanwhile, House Freedom Caucus members who left a meeting in the Speakers office say that they were talking to the Speaker about abandoning the spending agreement that Johnson announced earlier in the week. (Photo by Kent Nishimura/Getty Images)

Enlarge / OpenAI Chief Executive Officer Sam Altman walks on the House side of the US Capitol on January 11, 2024, in Washington, DC. (Photo by Kent Nishimura/Getty Images)

Getty Images

On Thursday, The Wall Street Journal reported that OpenAI CEO Sam Altman is in talks with investors to raise as much as $5 trillion to $7 trillion for AI chip manufacturing, according to people familiar with the matter. The funding seeks to address the scarcity of graphics processing units (GPUs) crucial for training and running large language models like those that power ChatGPT, Microsoft Copilot, and Google Gemini.

The high dollar amount reflects the huge amount of capital necessary to spin up new semiconductor manufacturing capability. “As part of the talks, Altman is pitching a partnership between OpenAI, various investors, chip makers and power providers, which together would put up money to build chip foundries that would then be run by existing chip makers,” writes the Wall Street Journal in its report. “OpenAI would agree to be a significant customer of the new factories.”

To hit these ambitious targets—which are larger than the entire semiconductor industry’s current $527 billion global sales combined—Altman has reportedly met with a range of potential investors worldwide, including sovereign wealth funds and government entities, notably the United Arab Emirates, SoftBank CEO Masayoshi Son, and representatives from Taiwan Semiconductor Manufacturing Co. (TSMC).

TSMC is the world’s largest dedicated independent semiconductor foundry. It’s a critical linchpin that companies such as Nvidia, Apple, Intel, and AMD rely on to fabricate SoCs, CPUs, and GPUs for various applications.

Altman reportedly seeks to expand the global capacity for semiconductor manufacturing significantly, funding the infrastructure necessary to support the growing demand for GPUs and other AI-specific chips. GPUs are excellent at parallel computation, which makes them ideal for running AI models that heavily rely on matrix multiplication to work. However, the technology sector currently faces a significant shortage of these important components, constraining the potential for AI advancements and applications.

In particular, the UAE’s involvement, led by Sheikh Tahnoun bin Zayed al Nahyan, a key security official and chair of numerous Abu Dhabi sovereign wealth vehicles, reflects global interest in AI’s potential and the strategic importance of semiconductor manufacturing. However, the prospect of substantial UAE investment in a key tech industry raises potential geopolitical concerns, particularly regarding the US government’s strategic priorities in semiconductor production and AI development.

The US has been cautious about allowing foreign control over the supply of microchips, given their importance to the digital economy and national security. Reflecting this, the Biden administration has undertaken efforts to bolster domestic chip manufacturing through subsidies and regulatory scrutiny of foreign investments in important technologies.

To put the $5 trillion to $7 trillion estimate in perspective, the White House just today announced a $5 billion investment in R&D to advance US-made semiconductor technologies. TSMC has already sunk $40 billion—one of the largest foreign investments in US history—into a US chip plant in Arizona. As of now, it’s unclear whether Altman has secured any commitments toward his fundraising goal.

Updated on February 9, 2024 at 8: 45 PM Eastern with a quote from the WSJ that clarifies the proposed relationship between OpenAI and partners in the talks.

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what-would-an-xbox-without-console-exclusives-even-look-like?

What would an Xbox without console exclusives even look like?

The world's most expensive domino set.

Enlarge / The world’s most expensive domino set.

Aurich Lawson

It’s been a busy time in the Xbox rumor mill of late. Last weekend, the Verge reported that Microsoft was considering launching a version of Bethesda’s upcoming Indiana Jones and the Great Circle on PlayStation 5, alongside plans to port last year’s Hi-Fi Rush to other consoles. That same weekend, Xbox Eras published more lightly sourced rumors suggesting that prominent Xbox exclusive Starfield would be getting a PS5 port.

While Microsoft hasn’t directly commented on these reports, Xbox chief Phil Spencer wrote on social media that Microsoft is “planning a business update event for next week, where we look forward to sharing more details with you about our vision for the future of Xbox.”

The churning rumor mill has set off something of an existential crisis among some Xbox superfans, content creators, and influencers, who are worried that Microsoft is planning to essentially abandon their favored console. “Genuinely feel terrible for convincing my sister to get an Xbox instead of a PS5,” XboxYoda posted in a representative social media take. “Like I actually feel like I let her down… .”

“If you like being lied to that’s a you thing,” social media user XcloudTimdog posted. “I have a set of standards, that’s all. Cross them and, well, I respond.”

These and other more apocalyptic reactions might seem like hyperbolic whining from territorial console misanthropes. But they also have the germ of a point. Exclusive games have long been the primary way console makers argue for players to choose their console over the competition. If Microsoft effectively changes that argument in the middle of the current console generation, Xbox owners will have some legitimate reason to be upset.

A world without Xbox exclusives

To see why, start with a simple thought experiment. Say it’s early 2020 and Microsoft announces that it is abandoning the idea of console exclusives entirely. Upcoming Xbox Game Studios titles like Halo Infinite and Starfield would still be released on the upcoming Xbox Series X/S, of course, but they’d also all see equivalent versions launch on the PS5 (and sometimes the Switch) on the same day. Sony does not respond in kind and keeps major franchises like God of War and Spider-Man exclusive to the PS5.

Spider-Man 2 on the same console?” height=”427″ src=”https://cdn.arstechnica.net/wp-content/uploads/2024/02/Starfield_03_ExploringPlanets-800-1024×683-1-640×427.jpg” width=”640″>

Enlarge / You mean I could have visited this planet and played Spider-Man 2 on the same console?

In this hypothetical world, convincing someone to buy an Xbox becomes much more difficult. On the one hand, you have a PlayStation console that can play all of the major big-budget games published by both Microsoft and Sony. On the other, you have an Xbox that doesn’t have access to the significant Sony half of that gaming equation.

There are other reasons you might still consider an Xbox in this world. Maybe you think the reduced price of the Xbox Series S delivers more “bang for the buck.” Maybe you prefer the Xbox controller layout or some of Xbox’s system-level OS features. Maybe you’re convinced cross-platform games will look or play better on Microsoft’s machine.

But in the console market, these kinds of concerns often take a back seat to the prospect of a system’s exclusive games and franchises. The biggest exclusive titles are called “system sellers” for a reason—they’re the games that make many gamers plunk down hundreds of dollars on hardware just for the possibility of spending more on this must-have software.

In this hypothetical, Microsoft would essentially be trying to sell the Xbox without any exclusive system sellers.

What would an Xbox without console exclusives even look like? Read More »

your-current-pc-probably-doesn’t-have-an-ai-processor,-but-your-next-one-might

Your current PC probably doesn’t have an AI processor, but your next one might

Intel's Core Ultra chips are some of the first x86 PC processors to include built-in NPUs. Software support will slowly follow.

Enlarge / Intel’s Core Ultra chips are some of the first x86 PC processors to include built-in NPUs. Software support will slowly follow.

Intel

When it announced the new Copilot key for PC keyboards last month, Microsoft declared 2024 “the year of the AI PC.” On one level, this is just an aspirational PR-friendly proclamation, meant to show investors that Microsoft intends to keep pushing the AI hype cycle that has put it in competition with Apple for the title of most valuable publicly traded company.

But on a technical level, it is true that PCs made and sold in 2024 and beyond will generally include AI and machine-learning processing capabilities that older PCs don’t. The main thing is the neural processing unit (NPU), a specialized block on recent high-end Intel and AMD CPUs that can accelerate some kinds of generative AI and machine-learning workloads more quickly (or while using less power) than the CPU or GPU could.

Qualcomm’s Windows PCs were some of the first to include an NPU, since the Arm processors used in most smartphones have included some kind of machine-learning acceleration for a few years now (Apple’s M-series chips for Macs all have them, too, going all the way back to 2020’s M1). But the Arm version of Windows is a insignificantly tiny sliver of the entire PC market; x86 PCs with Intel’s Core Ultra chips, AMD’s Ryzen 7040/8040-series laptop CPUs, or the Ryzen 8000G desktop CPUs will be many mainstream PC users’ first exposure to this kind of hardware.

Right now, even if your PC has an NPU in it, Windows can’t use it for much, aside from webcam background blurring and a handful of other video effects. But that’s slowly going to change, and part of that will be making it relatively easy for developers to create NPU-agnostic apps in the same way that PC game developers currently make GPU-agnostic games.

The gaming example is instructive, because that’s basically how Microsoft is approaching DirectML, its API for machine-learning operations. Though up until now it has mostly been used to run these AI workloads on GPUs, Microsoft announced last week that it was adding DirectML support for Intel’s Meteor Lake NPUs in a developer preview, starting in DirectML 1.13.1 and ONNX Runtime 1.17.

Though it will only run an unspecified “subset of machine learning models that have been targeted for support” and that some “may not run at all or may have high latency or low accuracy,” it opens the door to more third-party apps to start taking advantage of built-in NPUs. Intel says that Samsung is using Intel’s NPU and DirectML for facial recognition features in its photo gallery app, something that Apple also uses its Neural Engine for in macOS and iOS.

The benefits can be substantial, compared to running those workloads on a GPU or CPU.

“The NPU, at least in Intel land, will largely be used for power efficiency reasons,” Intel Senior Director of Technical Marketing Robert Hallock told Ars in an interview about Meteor Lake’s capabilities. “Camera segmentation, this whole background blurring thing… moving that to the NPU saves about 30 to 50 percent power versus running it elsewhere.”

Intel and Microsoft are both working toward a model where NPUs are treated pretty much like GPUs are today: developers generally target DirectX rather than a specific graphics card manufacturer or GPU architecture, and new features, one-off bug fixes, and performance improvements can all be addressed via GPU driver updates. Some GPUs run specific games better than others, and developers can choose to spend more time optimizing for Nvidia cards or AMD cards, but generally the model is hardware agnostic.

Similarly, Intel is already offering GPU-style driver updates for its NPUs. And Hallock says that Windows already essentially recognizes the NPU as “a graphics card with no rendering capability.”

Your current PC probably doesn’t have an AI processor, but your next one might Read More »

4chan-daily-challenge-sparked-deluge-of-explicit-ai-taylor-swift-images

4chan daily challenge sparked deluge of explicit AI Taylor Swift images

4chan daily challenge sparked deluge of explicit AI Taylor Swift images

4chan users who have made a game out of exploiting popular AI image generators appear to be at least partly responsible for the flood of fake images sexualizing Taylor Swift that went viral last month.

Graphika researchers—who study how communities are manipulated online—traced the fake Swift images to a 4chan message board that’s “increasingly” dedicated to posting “offensive” AI-generated content, The New York Times reported. Fans of the message board take part in daily challenges, Graphika reported, sharing tips to bypass AI image generator filters and showing no signs of stopping their game any time soon.

“Some 4chan users expressed a stated goal of trying to defeat mainstream AI image generators’ safeguards rather than creating realistic sexual content with alternative open-source image generators,” Graphika reported. “They also shared multiple behavioral techniques to create image prompts, attempt to avoid bans, and successfully create sexually explicit celebrity images.”

Ars reviewed a thread flagged by Graphika where users were specifically challenged to use Microsoft tools like Bing Image Creator and Microsoft Designer, as well as OpenAI’s DALL-E.

“Good luck,” the original poster wrote, while encouraging other users to “be creative.”

OpenAI has denied that any of the Swift images were created using DALL-E, while Microsoft has continued to claim that it’s investigating whether any of its AI tools were used.

Cristina López G., a senior analyst at Graphika, noted that Swift is not the only celebrity targeted in the 4chan thread.

“While viral pornographic pictures of Taylor Swift have brought mainstream attention to the issue of AI-generated non-consensual intimate images, she is far from the only victim,” López G. said. “In the 4chan community where these images originated, she isn’t even the most frequently targeted public figure. This shows that anyone can be targeted in this way, from global celebrities to school children.”

Originally, 404 Media reported that the harmful Swift images appeared to originate from 4chan and Telegram channels before spreading on X (formerly Twitter) and other social media. Attempting to stop the spread, X took the drastic step of blocking all searches for “Taylor Swift” for two days.

But López G. said that Graphika’s findings suggest that platforms will continue to risk being inundated with offensive content so long as 4chan users are determined to continue challenging each other to subvert image generator filters. Rather than expecting platforms to chase down the harmful content, López G. recommended that AI companies should get ahead of the problem, taking responsibility for outputs by paying attention to evolving tactics of toxic online communities reporting precisely how they’re getting around safeguards.

“These images originated from a community of people motivated by the ‘challenge’ of circumventing the safeguards of generative AI products, and new restrictions are seen as just another obstacle to ‘defeat,’” López G. said. “It’s important to understand the gamified nature of this malicious activity in order to prevent further abuse at the source.”

Experts told The Times that 4chan users were likely motivated to participate in these challenges for bragging rights and to “feel connected to a wider community.”

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microsoft-in-deal-with-semafor-to-create-news-stories-with-aid-of-ai-chatbot

Microsoft in deal with Semafor to create news stories with aid of AI chatbot

a meeting-deadline helper —

Collaboration comes as tech giant faces multibillion-dollar lawsuit from The New York Times.

Cube with Microsoft logo on top of their office building on 8th Avenue and 42nd Street near Times Square in New York City.

Enlarge / Cube with Microsoft logo on top of their office building on 8th Avenue and 42nd Street near Times Square in New York City.

Microsoft is working with media startup Semafor to use its artificial intelligence chatbot to help develop news stories—part of a journalistic outreach that comes as the tech giant faces a multibillion-dollar lawsuit from the New York Times.

As part of the agreement, Microsoft is paying an undisclosed sum of money to Semafor to sponsor a breaking news feed called “Signals.” The companies would not share financial details, but the amount of money is “substantial” to Semafor’s business, said a person familiar with the matter.

Signals will offer a feed of breaking news and analysis on big stories, with about a dozen posts a day. The goal is to offer different points of view from across the globe—a key focus for Semafor since its launch in 2022.

Semafor co-founder Ben Smith emphasized that Signals will be written entirely by journalists, with artificial intelligence providing a research tool to inform posts.

Microsoft on Monday was also set to announce collaborations with journalist organizations including the Craig Newmark School of Journalism, the Online News Association, and the GroundTruth Project.

The partnerships come as media companies have become increasingly concerned over generative AI and its potential threat to their businesses. News publishers are grappling with how to use AI to improve their work and stay ahead of technology, while also fearing that they could lose traffic, and therefore revenue, to AI chatbots—which can churn out humanlike text and information in seconds.

The New York Times in December filed a lawsuit against Microsoft and OpenAI, alleging the tech companies have taken a “free ride” on millions of its articles to build their artificial intelligence chatbots, and seeking billions of dollars in damages.

Gina Chua, Semafor’s executive editor, has been involved in developing Semafor’s AI research tools, which are powered by ChatGPT and Microsoft’s Bing.

“Journalism has always used technology whether it’s carrier pigeons, the telegraph or anything else . . . this represents a real opportunity, a set of tools that are really a quantum leap above many of the other tools that have come along,” Chua said.

For a breaking news event, Semafor journalists will use AI tools to quickly search for reporting and commentary from other news sources across the globe in multiple languages. A Signals post might include perspectives from Chinese, Indian, or Russian media, for example, with Semafor’s reporters summarizing and contextualizing the different points of view, while citing its sources.

Noreen Gillespie, a former Associated Press journalist, joined Microsoft three months ago to forge relationships with news companies. “Journalists need to adopt these tools in order to survive and thrive for another generation,” she said.

Semafor was founded by Ben Smith, the former BuzzFeed editor, and Justin Smith, the former chief executive of Bloomberg Media.

Semafor, which is free to read, is funded by wealthy individuals, including 3G capital founder Jorge Paulo Lemann and KKR co-founder Henry Kravis. The company made more than $10 million in revenue in 2023 and has more than 500,000 subscriptions to its free newsletters. Justin Smith said Semafor was “very close to a profit” in the fourth quarter of 2023.

“What we’re trying to go after is this really weird space of breaking news on the Internet now, in which you have these really splintered, fragmented, rushed efforts to get the first sentence of a story out for search engines . . . and then never really make any effort to provide context,” Ben Smith said.

“We’re trying to go the other way. Here are the confirmed facts. Here are three or four pieces of really sophisticated, meaningful analysis.”

© 2024 The Financial Times Ltd. All rights reserved. Please do not copy and paste FT articles and redistribute by email or post to the web.

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the-life-and-times-of-cozy-bear,-the-russian-hackers-who-just-hit-microsoft-and-hpe

The life and times of Cozy Bear, the Russian hackers who just hit Microsoft and HPE

FROM RUSSIA WITH ROOT —

Hacks by Kremlin-backed group continue to hit hard.

The life and times of Cozy Bear, the Russian hackers who just hit Microsoft and HPE

Getty Images

Hewlett Packard Enterprise (HPE) said Wednesday that Kremlin-backed actors hacked into the email accounts of its security personnel and other employees last May—and maintained surreptitious access until December. The disclosure was the second revelation of a major corporate network breach by the hacking group in five days.

The hacking group that hit HPE is the same one that Microsoft said Friday broke into its corporate network in November and monitored email accounts of senior executives and security team members until being driven out earlier this month. Microsoft tracks the group as Midnight Blizzard. (Under the company’s recently retired threat actor naming convention, which was based on chemical elements, the group was known as Nobelium.) But it is perhaps better known by the name Cozy Bear—though researchers have also dubbed it APT29, the Dukes, Cloaked Ursa, and Dark Halo.

“On December 12, 2023, Hewlett Packard Enterprise was notified that a suspected nation-state actor, believed to be the threat actor Midnight Blizzard, the state-sponsored actor also known as Cozy Bear, had gained unauthorized access to HPE’s cloud-based email environment,” company lawyers wrote in a filing with the Securities and Exchange Commission. “The Company, with assistance from external cybersecurity experts, immediately activated our response process to investigate, contain, and remediate the incident, eradicating the activity. Based on our investigation, we now believe that the threat actor accessed and exfiltrated data beginning in May 2023 from a small percentage of HPE mailboxes belonging to individuals in our cybersecurity, go-to-market, business segments, and other functions.”

An HPE representative said in an email that Cozy Bear’s initial entry into the network was through “a compromised, internal HPE Office 365 email account [that] was leveraged to gain access.” The representative declined to elaborate. The representative also declined to say how HPE discovered the breach.

Cozy Bear hacking its way into the email systems of two of the world’s most powerful companies and monitoring top employees’ accounts for months aren’t the only similarities between the two events. Both breaches also involved compromising a single device on each corporate network, then escalating that toehold to the network itself. From there, Cozy Bear camped out undetected for months. The HPE intrusion was all the more impressive because Wednesday’s disclosure said that the hackers also gained access to Sharepoint servers in May. Even after HPE detected and contained that breach a month later, it would take HPE another six months to discover the compromised email accounts.

The pair of disclosures, coming within five days of each other, may create the impression that there has been a recent flurry of hacking activity. But Cozy Bear has actually been one of the most active nation-state groups since at least 2010. In the intervening 14 years, it has waged an almost constant series of attacks, mostly on the networks of governmental organizations and the technology companies that supply them. Multiple intelligence services and private research companies have attributed the hacking group as an arm of Russia’s Foreign Intelligence Service, also known as the SVR.

The life and times of Cozy Bear (so far)

In its earliest years, Cozy Bear operated in relative obscurity—precisely the domain it prefers—as it hacked mostly Western governmental agencies and related organizations such as political think tanks and governmental subcontractors. In 2013, researchers from security firm Kaspersky unearthed MiniDuke, a sophisticated piece of malware that had taken hold of 60 government agencies, think tanks, and other high-profile organizations in 23 countries, including the US, Hungary, Ukraine, Belgium, and Portugal.

MiniDuke was notable for its odd combination of advanced programming and the gratuitous references to literature found embedded into its code. (It contained strings that alluded to Dante Alighieri’s Divine Comedy and to 666, the Mark of the Beast discussed in a verse from the Book of Revelation.) Written in assembly, employing multiple levels of encryption, and relying on hijacked Twitter accounts and automated Google searches to maintain stealthy communications with command-and-control servers, MiniDuke was among the most advanced pieces of malware found at the time.

It wasn’t immediately clear who was behind the mysterious malware—another testament to the stealth of its creators. In 2015, however, researchers linked MiniDuke—and seven other pieces of previously unidentified malware—to Cozy Bear. After a half-decade of lurking, the shadowy group was suddenly brought into the light of day.

Cozy Bear once again came to prominence the following year when researchers discovered the group (along with Fancy Bear, a separate Russian-state hacking group) inside the servers of the Democratic National Committee, looking for intelligence such as opposition research into Donald Trump, the Republican nominee for president at the time. The hacking group resurfaced in the days following Trump’s election victory that year with a major spear-phishing blitz that targeted dozens of organizations in government, military, defense contracting, media, and other industries.

One of Cozy Bear’s crowning achievements came in late 2020 with the discovery of an extensive supply chain attack that targeted customers of SolarWinds, the Austin, Texas, maker of network management tools. After compromising SolarWinds’ software build system, the hacking group pushed infected updates to roughly 18,000 customers. The hackers then used the updates to compromise nine federal agencies and about 100 private companies, White House officials have said.

Cozy Bear has remained active, with multiple campaigns coming to light in 2021, including one that used zero-day vulnerabilities to infect fully updated iPhones. Last year, the group devoted much of its time to hacks of Ukraine.

The life and times of Cozy Bear, the Russian hackers who just hit Microsoft and HPE Read More »

in-major-gaffe,-hacked-microsoft-test-account-was-assigned-admin-privileges

In major gaffe, hacked Microsoft test account was assigned admin privileges

In major gaffe, hacked Microsoft test account was assigned admin privileges

The hackers who recently broke into Microsoft’s network and monitored top executives’ email for two months did so by gaining access to an aging test account with administrative privileges, a major gaffe on the company’s part, a researcher said.

The new detail was provided in vaguely worded language included in a post Microsoft published on Thursday. It expanded on a disclosure Microsoft published late last Friday. Russia-state hackers, Microsoft said, used a technique known as password spraying to exploit a weak credential for logging into a “legacy non-production test tenant account” that wasn’t protected by multifactor authentication. From there, they somehow acquired the ability to access email accounts that belonged to senior executives and employees working in security and legal teams.

A “pretty big config error”

In Thursday’s post updating customers on findings from its ongoing investigation, Microsoft provided more details on how the hackers achieved this monumental escalation of access. The hackers, part of a group Microsoft tracks as Midnight Blizzard, gained persistent access to the privileged email accounts by abusing the OAuth authorization protcol, which is used industry-wide to allow an array of apps to access resources on a network. After compromising the test tenant, Midnight Blizzard used it to create a malicious app and assign it rights to access every email address on Microsoft’s Office 365 email service.

In Thursday’s update, Microsoft officials said as much, although in language that largely obscured the extent of the major blunder. They wrote:

Threat actors like Midnight Blizzard compromise user accounts to create, modify, and grant high permissions to OAuth applications that they can misuse to hide malicious activity. The misuse of OAuth also enables threat actors to maintain access to applications, even if they lose access to the initially compromised account. Midnight Blizzard leveraged their initial access to identify and compromise a legacy test OAuth application that had elevated access to the Microsoft corporate environment. The actor created additional malicious OAuth applications. They created a new user account to grant consent in the Microsoft corporate environment to the actor controlled malicious OAuth applications. The threat actor then used the legacy test OAuth application to grant them the Office 365 Exchange Online full_access_as_app role, which allows access to mailboxes. [Emphasis added.]

Kevin Beaumont—a researcher and security professional with decades of experience, including a stint working for Microsoft—pointed out on Mastodon that the only way for an account to assign the all-powerful full_access_as_app role to an OAuth app is for the account to have administrator privileges. “Somebody,” he said, “made a pretty big config error in production.”

In major gaffe, hacked Microsoft test account was assigned admin privileges Read More »

microsoft-cancels-blizzard-survival-game,-lays-off-1,900

Microsoft cancels Blizzard survival game, lays off 1,900

Survival game won’t survive —

Job cuts hit Xbox, ZeniMax businesses, too, reports say.

Activision Blizzard survival game

Enlarge / Blizzard shared this image teasing a now-cancelled game in 2022.

Blizzard Entertainment/Twitter

The survival game that Blizzard announced it was working on in January 2022 has reportedly been canceled. The cut comes as Microsoft is slashing jobs a little over four months after closing its $69 billion Activision Blizzard acquisition.

Blizzard’s game didn’t have a title yet, but Blizzard said it would be for PC and console and introduce new stories and characters. In January 2022, Blizzard put out a call for workers to help build the game.

The game’s axing was revealed today in an internal memo from Microsoft Gaming CEO Phil Spencer seen by publications including The Verge and CNBC that said:

Blizzard is ending development on its survival game project and will be shifting some of the people working on it to one of several promising new projects Blizzard has in the early stages of development.

Spencer said Microsoft was laying off 1,900 people starting today, with workers continuing to receive notifications in the coming days. The layoffs affect 8.64 percent of Microsoft’s 22,000-employee gaming division.

Another internal memo, written by Matt Booty, Microsoft’s game content and studios president, and seen by The Verge, said the layoffs are hitting “multiple” Blizzard teams, “including development teams, shared service organizations and corporate functions.” In January 2022, after plans for the merger were first announced, Bobby Kotick, then-CEO of Activision Blizzard, reportedly told employees at a meeting that Microsoft was “committed to trying to retain as many of our people as possible.”

Spencer said workers in Microsoft’s Xbox and ZeniMax Media businesses will also be impacted. Microsoft acquired ZeniMax, which owns Bethesda Softworks, for $7.5 billion in a deal that closed in March 2021.

After a bumpy ride with global regulators, Microsoft’s Activision Blizzard purchase closed in October. Booty’s memo said the job cuts announced today “reflect a focus on products and strategies that hold the most promise for Blizzard’s future growth, as well as identified areas of overlap across Blizzard and Microsoft Gaming.”

He claimed that layoffs would “enable Blizzard and Xbox to deliver ambitious games… on more platforms and in more places than ever before,” as well as “sustainable growth.”

Spencer’s memo said:

As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.

Laid-off employees will receive severance as per local employment laws, Spencer added.

Additional departures

Blizzard President Mike Ybarra announced via his X profile today that he is leaving the company. Booty’s memo said Ybarra “decided to leave” since the acquisition was completed. Ybarra was a top executive at Microsoft for over 20 years, including leadership positions at Xbox, before he started working at Blizzard in 2019.

Blizzard’s chief design officer, Allen Adham, is also leaving the company, per Booty’s memo.

The changes at the game studio follow Activision Blizzard CEO Bobby Kotick’s exit on January 1.

Microsoft also laid off 10,000 people, or about 4.5 percent of its reported 221,000-person workforce, last year as it worked to complete its Activision Blizzard buy. Microsoft blamed those job cuts on “macroeconomic conditions and changing customer priorities.”

Today’s job losses also join a string of recently announced tech layoffs, including at IBM, Google, SAP, and eBay and in the gaming community platforms Unity, Twitch, and Discord. However, layoffs following Microsoft’s Activision Blizzard deal were somewhat anticipated due to expected redundancies among the Washington tech giant’s biggest merger ever. This week, Microsoft hit a $3 trillion market cap, becoming the second company to do so (after Apple).

Microsoft cancels Blizzard survival game, lays off 1,900 Read More »

playstation-has-blocked-hardware-cheating-device-cronus-zen,-others-may-follow

PlayStation has blocked hardware cheating device Cronus Zen, others may follow

What’s a little anti-recoil between friends? —

No more using a mouse and keyboard on PS5, or using aiming mods, for now.

Ad showing

Enlarge / Who doesn’t want less recoil? Unless, that is, you’re someone competing against the person getting this benefit with a $100 “emulation” device.

Cronus

The Cronus Zen describes itself as a hardware tool for “universal controller compatibility,” letting you plug in a third-party controller, an Xbox controller into a PlayStation, or even your keyboard and mouse into a console. But you can also use its scripting engine to “amplify your game” and set up “GamePacks” to do things like reduce recoil animations in games like Call of Duty. And that is where Cronus seems to have gotten into trouble.

As first noted by the Call of Duty news channel CharlieIntel, the latest update to the PlayStation 5’s system (24.01-08.60.00) software blocks the Cronus from connecting. The update is “NOT mandatory,” Cronus claims in a notice on its website, so Zen players can hold off and keep playing. Still, there is “currently no timetable on a fix … it could be 24 (hours), 24 days, 24 months, we won’t know until we’ve dug into it.” There is, for now, a “Remote Play Workaround” for those already too far updated.

Ars attempted to reach Cronus for comment and reached out to Sony as well and will update this post with any new information.

The Cronus Zen, which costs $100 or more and is available on Amazon and at GameStop, among other outlets, does claim to offer accessibility and third-party compatibility options for players. But what has caught gamers’ attention, and Sony’s, is the wealth of GamePacks available for various games. Some single-player games, like Hogwarts Legacy and Cyberpunk 2077, are represented, but it’s the offerings for Call of Duty, Battlefield, Destiny 2, and other online multiplayer games that likely drew Sony’s ire.

Just a peek at the Apex Legends GamePack page suggests Zen mods “inspired by” the game, with options for “Aim Assist,” “Anti-Recoil Strength,” and “Fire Mods,” the latter of which can make you “harder to hit” and ping teammates when you are firing. Call of Duty: WarZone 3 mods include “Silent Aim. Insanely strong and not visible Aim Assist MOD!” The Zen was also capable of powering other cheat tools with emulated input, like AI-assisted aim assist.

Console manufacturers, already having more locked-down software than PCs, have taken up the cause of eliminating cheating at the hardware level. Microsoft issued a system-level ban on “unauthorized” accessories connecting to Xboxes in October. That had the unintended effect of cooling enthusiasm among fighting game enthusiasts and accessibility advocates. It did not, however, seem to block the Cronus, so long as you attached a compliant controller to it.

Individual game-makers have also attempted to block devices like the Cronus. Activision’s anti-cheat Ricochet tool called out “third-party hardware devices” that “act as a passthrough for controllers” in a blog post about its April 2023 updates. The same went for Ubisoft and Bungie, none of which called out the Cronus Zen in particular, but were signaling efforts to block it and similar devices, like the XIM and ReaSnow S1. Fortnite was ahead of the game, calling out the Cronus Zen and Cronus Max in late 2022.

None of these companies have offered a patch to the behavior of people who want to spend more than $100 and risk lifetime bans to earn undeserved points worth no tradable value.

Listing image by Cronus

PlayStation has blocked hardware cheating device Cronus Zen, others may follow Read More »

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Microsoft network breached through password-spraying by Russian-state hackers

Microsoft network breached through password-spraying by Russian-state hackers

Getty Images

Russia-state hackers exploited a weak password to compromise Microsoft’s corporate network and accessed emails and documents that belonged to senior executives and employees working in security and legal teams, Microsoft said late Friday.

The attack, which Microsoft attributed to a Kremlin-backed hacking group it tracks as Midnight Blizzard, is at least the second time in as many years that failures to follow basic security hygiene has resulted in a breach that has the potential to harm customers. One paragraph in Friday’s disclosure, filed with the Securities and Exchange Commission, was gobsmacking:

Beginning in late November 2023, the threat actor used a password spray attack to compromise a legacy non-production test tenant account and gain a foothold, and then used the account’s permissions to access a very small percentage of Microsoft corporate email accounts, including members of our senior leadership team and employees in our cybersecurity, legal, and other functions, and exfiltrated some emails and attached documents. The investigation indicates they were initially targeting email accounts for information related to Midnight Blizzard itself. We are in the process of notifying employees whose email was accessed.

Microsoft didn’t detect the breach until January 12, exactly a week before Friday’s disclosure. Microsoft’s account raises the prospect that the Russian hackers had uninterrupted access to the accounts for as long as two months.

A translation of the 93 words quoted above: A device inside Microsoft’s network was protected by a weak password with no form of two-factor authentication employed. The Russian adversary group was able to guess it by peppering it with previously compromised or commonly used passwords until they finally landed on the right one. The threat actor then accessed the account, indicating that either 2FA wasn’t employed or the protection was somehow bypassed.

Furthermore, this “legacy non-production test tenant account” was somehow configured so that Midnight Blizzard could pivot and gain access to some of the company’s most senior and sensitive employee accounts.

As Steve Bellovin, a computer science professor and affiliate law prof at Columbia University with decades of experience in cybersecurity, wrote on Mastodon:

A lot of fascinating implications here. A successful password spray attack suggests no 2FA and either reused or weak passwords. Access to email accounts belonging to “senior leadership… cybersecurity, and legal” teams using just the permissions of a “test tenant account” suggests that someone gave that test account amazing privileges. Why? Why wasn’t it removed when the test was over? I also note that it took Microsoft about seven weeks to detect the attack.

While Microsoft said that it wasn’t aware of any evidence that Midnight Blizzard gained access to customer environments, production systems, source code, or AI systems, some researchers voiced doubts, particularly about whether the Microsoft 365 service might be or have been susceptible to similar attack techniques. One of the researchers was Kevin Beaumont, who has had a long cybersecurity career that has included a stint working for Microsoft. On LinkedIn, he wrote:

Microsoft staff use Microsoft 365 for email. SEC filings and blogs with no details on Friday night are great.. but they’re going to have to be followed with actual detail. The age of Microsoft doing tents, incident code words, CELA’ing things and pretending MSTIC sees everything (threat actors have Macs too) are over — they need to do radical technical and cultural transformation to retain trust.

CELA is short for Corporate, External, and Legal Affairs, a group inside Microsoft that helps draft disclosures. MSTIC stands for the Microsoft Threat Intelligence Center.

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WordPad out; 80Gbps USB support and other Win 11 features in testing this month

Can’t stop won’t stop —

Microsoft’s next batch of Windows 11 feature updates is taking shape.

Green USB-C cable

Windows 11’s big feature update in September included a long list of minor changes, plus the Copilot AI assistant; that update was followed by Windows 11 23H2 in late October, which reset the operating system’s timeline for technical support and security updates but didn’t add much else in and of itself. But Windows development never stops these days, and this month’s Insider Preview builds have already shown us a few things that could end up in the stable version of the operating system in the next couple of months.

One major addition, which rolled out to Dev Channel builds on January 11 and Beta Channel builds today, is support for 80Gbps USB 4 ports. These speeds are part of the USB4 Version 2.0 spec—named with the USB-IF’s typical flair for clarity and consistency—that was published in 2022. Full 80Gbps speeds are still rare and will be for the foreseeable future, but Microsoft says that they’ll be included the Razer Blade 18 and a handful of other PCs with Intel’s 14th-generation HX-series laptop processors. We’d expect the new speeds to proliferate slowly and mostly in high-end systems over the next few months and years.

Another addition to that January 11 Dev Channel build is a change in how the Copilot generative AI assistant works. Normally, Copilot is launched by the user manually, either by clicking the icon on the taskbar, hitting the Win+C key combo, or (in some new PCs) by using the dedicated Copilot button on the keyboard. In recent Dev Channel builds, the Copilot window will open automatically on certain PCs as soon as you log into Windows, becoming part of your default desktop unless you turn it off in Settings.

The Copilot panel will only open by default on screens that meet minimum size and resolution requirements, things that Windows already detects and takes into account when setting your PC’s default zoom and showing available Snap Layouts, among other things. Microsoft says it’s testing the feature on screens that are 27 inches or larger with 1,920 or more horizontal pixels (for most screens, this means a minimum resolution of 1080p). For PCs without Copilot, including those that haven’t been signed into a Microsoft account, the feature will continue to be absent.

The

Enlarge / The “richer weather experience on the Lock screen,” seen in the bottom-center of this screenshot.

Microsoft

Other additions to the Dev Channel builds this month include easy Snipping Tool editing for Android screenshots from phones that have been paired to your PC, custom user-created voice commands, the ability to share URLs directly to services like WhatsApp and Gmail from the Windows share window, a new Weather widget for the Windows lock screen, and app install notifications from the Microsoft store.

Microsoft hasn’t publicized any of the changes it has made to its Canary channel builds since January 4—this is typical since it changes the fastest, and the tested features are the most likely to be removed or significantly tweaked before being released to the public. Most of the significant additions from that announcement have since made it out to the other channels, but there are a couple of things worth noting. First, there’s a new Energy Saver taskbar icon for desktop PCs without batteries, making it easier to tell when the feature is on without creating confusion. And the venerable WordPad app, originally marked for deletion in September, has also been removed from these builds and can’t be reinstalled.

Microsoft doesn’t publish Windows feature updates on an exact cadence beyond its commitment to deliver one with a new version number once per year in the fall. Last year’s first major batch of Windows 11 additions rolled out at the end of February, so a late winter or early spring launch window for the next batch of features could make sense.

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Bing Search shows few, if any, signs of market share increase from AI features

high hopes —

Bing’s US and worldwide market share is about the same as it has been for years.

Bing Search shows few, if any, signs of market share increase from AI features

Microsoft

Not quite one year ago, Microsoft announced a “multi-year, multi-billion dollar investment” in OpenAI, a company that had made waves in 2022 with its ChatGPT chatbot and DALL-E image creator. The next month, Microsoft announced that it was integrating a generative AI chatbot into its Bing search engine and Edge browser, and similar generative AI features were announced for Windows in the apps formerly known as Microsoft Office, Microsoft Teams, and other products.

Adding AI features to Bing was meant to give it an edge over Google, and reports indicated that Google was worried enough about it to accelerate its own internal generative AI efforts. Microsoft announced in March 2023 that Bing surpassed the 100 million monthly active users mark based on interest in Bing Chat and its ilk; by Microsoft’s estimates, each percentage of Google’s search market share that Bing could siphon away was worth as much as $2 billion to Microsoft.

A year later, it looks like Microsoft’s AI efforts may have helped Bing on the margins, but they haven’t meaningfully eroded Google’s search market share, according to Bloomberg. Per Bloomberg’s analysis of data from Sensor Tower, Bing usage had been down around 33 percent year over year just before the AI-powered features were added, but those numbers had rebounded by the middle of 2023.

Microsoft hasn’t given an official update on Bing’s monthly active users in quite a while—we’ve asked the company for an update, and will share it if we get one—though Microsoft Chief Marketing Officer Yusuf Medhi told Bloomberg that “millions and millions of people” were still using the new AI features.

StatCounter data mostly tells a similar story. According to its data, Google’s worldwide market share is currently in the low 90s, and it has been for virtually the entire 15-year period for which StatCounter offers data. Bing’s worldwide market share number over the same period has been remarkably stable; it was about 3.5 percent in the summer of 2009, when what had been known as Live Search was renamed Bing in the first place, and as of December 2023, it was still stuck at around 3.4 percent.

Recent US data is slightly more flattering for Microsoft, where Bing’s usage rose from 6.7 percent in December 2022 to 7.7 percent in December 2023. But that doesn’t necessarily suggest any kind of AI-fueled influx in new Bing search users—usage remained in the mid-to-high 6 percent range through most of 2023 before ticking up right at the end of the year—and Bing’s US usage has floated in that same 6–7 percent zone for most of the last decade.

It even seems like Microsoft is making moves to distance its AI efforts from Bing a bit. What began as “Bing Chat” or “the new Bing” is now known as Windows Copilot—both inside Windows 11 and elsewhere. Earlier this week, the Bing Image Creator became “Image Creator from Designer.” Both products still feature Bing branding prominently—the Copilot screen in Windows 11 still says “with Bing” at the top of it, and the Image Creator tool is still hosted on the Bing.com domain. But if these new AI features aren’t driving Bing’s market share up, then it makes sense for Microsoft to create room for them to stand on their own.

That’s not to say Google’s search dominance is assured. Leipzig University researchers published a study earlier this week (PDF) suggesting Google, Bing, and the Bing-powered DuckDuckGo had seen “an overall downward trend in text quality,” especially for heavily SEO-optimized categories like purchase recommendations and product reviews.

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