3 – Breaking News & Latest Updates 2026
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Microsoft

It might not get the same kind of attention as Google and Apple, but Microsoft is still one of the biggest and most powerful tech companies operating today. It runs Azure, one of the biggest cloud computing services, and maintains Windows 11 and the whole Office suite of software. It also makes plenty of Surface hardware and has a whole slew of gaming products, including the Xbox Series X. But the company is ever expanding — building new hardware, acquiring new game studios, and making sure that even if Microsoft doesn’t run your phone, it can touch plenty of the apps on it.

Richard Lawler
Richard Lawler
AI cybersecurity updates for MDASH, Mythos, and GPT-5.5.

On Wednesday, the AISI, which evaluates AI models for the British government, said both Anthropic’s Claude Mythos Preview and OpenAI’s GPT-5.5 showed progress well above previous trends on cybersecurity testing. Separately, XBOW released data suggesting “frontier models have taken a major step forward in vulnerability discovery.”

Meanwhile, Microsoft said its multi-model agentic setup, MDASH, was used to discover 16 CVEs in this week’s Patch Tuesday updates and is the leader on the CyberGym security evaluation framework.

graph showing the average number of steps completed on a cybersecuirty benchmark comparing various models across how many tokens spent
Image: AISI
Tom Warren
Tom Warren
Microsoft starts layoffs at LinkedIn.

Microsoft is reportedly cutting around five percent of its LinkedIn headcount this week, approximately 875 roles. Reuters reports that Microsoft-owned LinkedIn will inform staff of the cuts today. Microsoft confirmed the layoffs in a statement to Seeking Alpha. “As part of our regular business planning, we’ve implemented organizational changes to best position ourselves for future success,” said an unnamed LinkedIn spokesperson.

Tom Warren
Tom Warren
Microsoft’s Israel chief is leaving amid investigation allegations.

Microsoft quietly announced last week that its Israel general manager, Alon Haimovich, is stepping down at the end of the month after four years. Israeli newspaper Globes now reports that Haimovich is leaving amid a Microsoft investigation into Microsoft Israel’s work with the Israeli Ministry of Defense. Microsoft blocked the Israeli military from some cloud and AI services last year after The Guardian revealed its services were being used for mass surveillance of Palestinians.

Tom Warren
Tom Warren
What is Copilot?

Microsoft CEO Satya Nadella was just asked to explain what Copilot is during the Musk v. Altman trial. “Copilot is an AI assistant, similar to ChatGPT.” That’s funny because you won’t find a mention of ChatGPT in Microsoft’s Copilot marketing materials.

Hayden Field
Hayden Field
During Altman’s ouster, Satya Nadella tried to reassure investors everything would not “crumble.”

The Microsoft CEO said that though things “started off as, essentially, a bunch of people leaving,” it turned into them “talking about creating a new company. That was obviously very concerning to me.” He said he was trying to make sure Altman and Greg Brockman joined Microsoft instead of launching a new competitor: “I just wanted to make sure we could hang onto the band that created all this technology, one way or the other.”

Tom Warren
Tom Warren
Xbox to share more about Project Helix ‘later this year.’

Microsoft is holding an Xbox game dev update today, and a lot of gaming publications think that “a closer look at Project Helix” means it’s some kind of showcase. That’s not the case, as it’s just “a recap of our announcements from GDC,” according to Xbox’s Jason Ronald. “We will have more to share about Project Helix later this year.” You can follow along at 12PM ET / 9AM PT over at the Microsoft game dev YouTube channel, if you’re interested in Xbox game development.

Hayden Field
Hayden Field
Microsoft and OpenAI’s definition of AGI was just revealed.

The two companies’ famed 2019 contract was made public as part of the Musk v. Altman trial exhibits. The 36-page agreement defines artificial general intelligence as “a highly autonomous system that outperforms humans at most economically valuable work.”

Richard Lawler
Richard Lawler
Now that OpenAI’s Microsoft exclusivity is over, it has a new deal with Amazon and AWS.

The day after opening up its relationship with Microsoft and Azure, OpenAI announced an expanded deal with Amazon that brings its latest AI models, Codex, and other tools to AWS.

Ben Thompson interviewed OpenAI CEO Sam Altman and AWS CEO Matt Garman and said it seems clear that “OpenAI’s focus is going to be on AWS,” particularly with an eye toward the new Amazon Bedrock Managed Agents setup.

Richard Lawler
Richard Lawler
“Microsoft unlocked with OpenAI a virtuous cycle.”

According to Microsoft’s lawyer Russell Cohen, making his opening argument in Musk v. Altman, saying that each round of funding (including across the events of November 2023) provided more resources, which produced better research and better models that justified further investment.

Similar to Savitt, Cohen closed by saying that Musk only raised claims about the deal after ChatGPT and OpenAI became successful, and he launched xAI as a competitor.

Richard Lawler
Richard Lawler
Microsoft enters the chat.

Following the opening argument by Altman’s lawyer, Russell Cohen began Microsoft’s argument. According to Cohen, the dispute has little to do with Microsoft (which just relaxed its arrangement with OpenAI).

His version of events is that OpenAI came to Microsoft because it needed a massive investment to pursue its research, Microsoft wasn’t there when Musk was donating to the project, and no one, Musk or anyone else, claimed there were any conditions preventing Microsoft from investing.