Microsoft’s Controversial Quantum Computer Set to Make Headlines in 2025

Press photo: Microsoft's Majorana 1 chip - the first quantum chip featuring a topological core based on groundbreaking materials developed by Microsoft. Image by John Brecher from Microsoft.

Microsoft’s Majorana 1 Quantum Chip

John Brecher/Microsoft

In February, Microsoft unveiled the Majorana 1 quantum computer, igniting debates in the quantum computing community.

The Majorana 1 is noteworthy for its use of topological qubits, which promise enhanced error resistance compared to traditional qubit designs. Microsoft has pursued the development of topological qubits grounded in the elusive Majorana zero mode (MZM), facing mixed results throughout its journey.

In 2021, a significant paper from Microsoft researchers was retracted by Nature due to identified analytical flaws in their research on topological qubits. Furthermore, evaluations of experiments leading up to Majorana 1 received heavy criticism in 2023.

Consequently, the 2025 paper from Nature announcing Majorana 1 faced heightened scrutiny. Notably, the editorial team claimed, “The results in this manuscript do not represent evidence of the presence of Majorana zero mode in the reported devices.” In contrast, Microsoft’s press release asserted the opposite.

Chetan Nayak from Microsoft addressed concerns during a packed presentation at the American Physical Society Global Summit in Anaheim, California, in March. Despite presenting new data, skepticism remained prevalent among critics.

“The data presented does not demonstrate a functional topological qubit, let alone the basic components of one,” stated Henry Legg, a professor at the University of St Andrews, expressing his reservations.

In response, Nayak contended that the community’s feedback has been enthusiastic and engaged. “We’re observing thoughtful discussions and intriguing responses regarding our recent findings and ongoing efforts,” he noted.

In July, additional data emerged, with researchers like Kim Eun-ha from Cornell University asserting that these results exhibit characteristics more indicative of a topological qubit than previously shown. “It’s encouraging to witness the progress,” she emphasized.

Nayak and his team remain optimistic about future advancements, aiming to escalate their quantum computing capabilities beyond Majorana 1. This initiative was selected for the final phase of the Quantum Benchmarking Initiative led by the U.S. Defense Advanced Research Projects Agency, focusing on practical approaches toward building viable quantum computers.

“This past year has been transformative for our quantum program, and the introduction of the Majorana 1 chip marks a crucial milestone for both Microsoft and the quantum computing sector,” stated Nayak.

Looking ahead to 2026, will Microsoft’s endeavors finally quell the critics? Legg remains doubtful: “Fundamental physics doesn’t adhere to schedules dictated by major tech corporations,” he remarked.

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Source: www.newscientist.com

Wall Street Welcomes Microsoft’s $100 Billion Investment in AI

Microsoft, currently the second most valuable company in the world, is investing heavily in its artificial intelligence initiatives while simultaneously generating significant revenue. This has led to heightened enthusiasm among investors.

The enterprise software leader announced its fourth-quarter results on Wednesday, surpassing expectations. Investors are closely monitoring the company as it competes for data centers and talent. Microsoft anticipates its capital expenditures for the upcoming fiscal year to exceed $100 billion, representing a 14% increase from the previous year.

In the fifth quarter, Microsoft exceeded Wall Street’s predictions. As the company approaches its 50th anniversary, originally founded by Bill Gates and Paul Allen in Albuquerque, New Mexico, in April 1975, its stock trades near an impressive $513—a 22% rise since the beginning of the year.

Shares of the software titan increased by more than 7% in extended trading on Wednesday.


Microsoft is actively enhancing its data center capabilities to address the growing demand for AI, similar to its competitors Alphabet/Google and Amazon. Recently, Alphabet revealed plans to invest $850 billion on capital expenditures by 2025, while Amazon is contemplating an expenditure of $100 million in the same timeframe.

“Cloud and AI are the primary catalysts for business transformation across all industries and sectors,” stated Satya Nadella, Chairman and CEO of Microsoft. “We are revamping the entire high-tech stack to assist our clients in adapting and thriving in this new era. This year, Azure’s growth has reached 34%, surpassing $750 billion, with an increase in all workload areas,” Nadella noted in a recent statement.

Microsoft reported a revenue of $76.4 billion, outperforming the consensus estimate of $738.1 billion, with earnings per share at $3.65 against an estimate of $3.37. This marks an 18% year-on-year revenue growth, compared to $64.733 billion for the same period last year.

The substantial investments in data centers necessary to support AI products are occurring as businesses increasingly shift their computing demands to the cloud.

Wedbush financial analyst Dan Ives remarked that as Microsoft sees its shares rise to $600,000,000,000,000,000,000, the company is poised to reach a market value of $400 billion and $5 trillion soon, driven by its accelerating adoption of AI technology.

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“This was a stellar quarter for MSFT, as cloud and AI become pivotal drivers of major business transformations across all sectors during this AI revolution.”

The escalating costs of attracting top AI talent are also noteworthy. OpenAI CEO Sam Altman revealed that Meta had offered a staggering $100 million signature bonus to recruit talent from his firm. Additionally, Meta reportedly allocated $2 million to senior Apple engineers to join its Superintelligence team.

In response, Microsoft is reportedly compensating high-level engineers with annual salaries of $408,000, as per Business Insider.

Source: www.theguardian.com

Microsoft’s future unclear amid escalating tensions in Gaza conflict. “On the brink of uncertainty”

fOr, for the second time last month, Microsoft employees disrupted high-level executives speaking at an event celebrating the 50th anniversary on April 4. They were protesting the company’s role in Israel’s ongoing siege in Gaza.

AI executive Mustafasleiman was suspended by employees Ibtihal Aboussad and Vaniya Agrawal. The two were fired within a few days. Microsoft president Brad Smith and former CEO Steve Ballmer were yelled at in Great Hall in Seattle on March 20 by current and former employees.

Before the April event, there was an outside gathering that also included current and former Tech Giant employees. Protesters projected a sign onto the wall of the hall called “Microsoft Powers Genocide,” showing that since October 7, 2023, Israel has been extensively using its AI and cloud computing services.

The rally and confusion were the latest in the employee protests at Microsoft’s headquarters in Redmond, Washington, urging the company to cut ties with Israel. This comes after years of simmering tensions on the company’s message boards and a recent workplace dispute.

Taken together, the protests indicate that more people have decided to leave the company for good, according to current and past employees who spoke with the Guardian. Microsoft did not respond to requests for comment.

The recent events at Microsoft reflect similar incidents at other tech companies, such as Google, where employees were fired as they protested their ties with Israel. In February, Google adjusted its AI guidelines, removing the commitment to not use artificial intelligence for surveillance or weapons.

Anxiety about the increase in Redmond

Former Microsoft software engineer Hossam Nasr described the situation at the company as being close to a turning point. He highlighted the events in February as an example of growing frustration among employees.

The firing of employees who raised concerns has galvanized others in the company who are worried about the issue, along with recent media coverage of Microsoft’s role in the siege of Gaza in Israel.

Aboussad told the Guardian that she had been increasingly at odds over the last few months as a software engineer working for AI. She expressed concerns about Microsoft’s deep ties with the Israeli government.
AP Report

Within days of speaking with the Guardian, Aboussad was terminated. Several colleagues mentioned they were considering leaving the company, she stated.

From Viva to IRL

Before the recent direct protest, Microsoft employees were mainly discussing the Hamas attacks and Israel’s continued retaliation online. Several conversations on Microsoft’s Viva Engage company’s message board sparked controversy. One employee posted about the lack of symmetry in the conflict between Israelis and Palestinians, which led to heated debates.

Employees critical of Israel’s actions have been vocal about what they perceive as a double standard within the company, especially following events from October 7th. They have accused Microsoft of censoring viewpoints on internal forums while treating Israeli supporters differently.
From immediately after October 7th. One employee shared an email from the company’s Global Employee Relations Team emphasizing the need for respectful discussions on the topic of Israel and Gaza. There were restrictions on postings related to these topics on the company message board.

Online discussions among employees have evolved throughout 2024, according to Nasr. Many employees initially focused on petitions urging the company to call for a ceasefire in Gaza, but the attention gradually shifted to Microsoft’s business practices. By the end of the year, Nasr and others began a campaign to boycott Microsoft’s cloud computing services, cancel contracts with the Israeli military, and gather signatures from colleagues in protest of the company’s ties with the Israeli government.

Reporting Microsoft’s role in Gaza Roil employee discussion

Documents obtained by Drop site, an independent news outlet, revealed that high-tech companies, including Microsoft, are actively seeking to serve the Israeli military. This discovery fueled concerns among some Microsoft employees, leading to internal discussions about the company’s ethics and practices.

Anna Hutt, a long-time employee at Microsoft, highlighted the importance of sharing information about the company’s actions within the organization. She emphasized the need for open conversations and offline organizing efforts to raise awareness among employees.

Nasr mentioned that Apartheid’s Azure has partnered with Boycott, Divest, and Sanctions (BDS) in adding Microsoft to their boycott campaign list. This move reflects growing discontent among employees regarding the company’s involvement with the Israeli military.

One Microsoft employee expressed frustration over what they perceived as a betrayal of the company’s stated values in its contract with Israel. They cited examples of events where critical perspectives were silenced and called for a boycott of Microsoft’s products that enable military actions.

Source: www.theguardian.com

UK Regulator Abandons Review of Microsoft’s Partnership with OpenAI

The UK Competition Watchdog has decided not to conduct a formal investigation into the partnership with the startups behind Microsoft’s AI chatbot, ChatGPT. The tech company, valued at 2.9TN (£2.3TN), claims it has a “material impact” on OpenAI but does not exercise control over it.

While the Competitive Markets Agency (CMA) acknowledged Microsoft’s significant financial support of OpenAI with a $13 billion investment, it concluded that Microsoft’s influence did not reach the threshold for an official investigation due to lack of control.

The CMA’s decision comes amidst concerns over the appointment of former Amazon UK boss Duggar as interim chairman. The CMA’s chief executive, Sarah Cardell, emphasized the need to maintain business trust without creating undue regulatory pressure from the UK government.


Joel Bamford, executive director of CMA’s merger, stated that as there was no change in control, the current partnership structure did not warrant review under UK’s merger regulations.

However, Bamford clarified that this decision does not imply that the partnership has been cleared of competitive concerns.

Following Sam Altman’s appointment as OpenAI’s CEO, the CMA initiated an investigation into OpenAI’s relations, noting a decrease in its reliance on Microsoft for computing power as a factor influencing their decision.

A Microsoft representative emphasized that the partnership with OpenAI supports competition, innovation, and responsible AI development. The decision to end the investigation was made after careful consideration of commercial realities.

Last year, the CMA chose not to investigate Amazon’s investment in AI companies, and similarly did not delve deeper into Microsoft’s partnerships with Mistral and Decleft.

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Microsoft recently invested $6.6 billion in OpenAI, contributing to a funding round that valued the company at $15.7 billion. OpenAI, run by a non-profit committee, has subsidiaries of for-profit entities, with Microsoft being the major supporter of these subsidiaries.

Despite concerns over Gurr’s appointment and the avoidance of negative economic impact, the CMA has focused on scrutinizing Big Tech, particularly during Gurr’s tenure. Alongside investigations into Google’s internet search dominance, the CMA is also exploring the effects of Apple and Google’s mobile platforms on consumers and businesses.

In January, Microsoft criticized the CMA’s cloud market survey, claiming it impedes tech companies from effectively competing with Google and Amazon in cloud computing services.

Source: www.theguardian.com

Microsoft’s increased collaboration with Israeli military during Gaza conflict exposed

The documents exposing the Israeli military’s increased reliance on Microsoft’s cloud technology and artificial intelligence systems during the peak of the bombing of Gaza have been leaked.

From October 7, 2023, Microsoft will enhance its partnership with Israel’s defense agencies by providing better computing and storage services along with technical support hours worth at least $10 million. This deal was signed in a move to deepen collaboration with the IDF.

A joint investigation by The Guardian, +972 Magazine, and Local Call, based on documents from Drop Site News, unveils Microsoft’s deep connections with the Israeli military, especially during the Gaza offensive in 2023.

The Israeli Defense Forces increasingly turned to large U.S. tech companies like Microsoft, Amazon, and Google to meet their technological needs during the conflict.

Palestinians walk through destruction caused by Israeli air and ground attacks in Rafah, Gaza Strip, early 2025. Photo: Mohammad Abu Samra/AP

Leaked documents reveal that Microsoft’s products, mainly Azure cloud computing, are extensively used by various Israeli military units and intelligence agencies.

Microsoft’s involvement in highly sensitive and top-secret projects for the Israeli Ministry of Defense underscores the deep partnership between the company and the IDF.

While Microsoft has declined to comment on the revelations, the Israeli military’s increased use of AI-based services from tech giants like Microsoft during the conflict has raised concerns about the blending of civilian and military digital infrastructure.

Israeli soldiers prepare to launch a military drone at an undisclosed location near Israel’s southern border with the Gaza Strip in January 2024. Photo: Atef Safadi/EPA

The integration of Microsoft’s cloud and AI technologies into IDF operations has facilitated data analysis and storage for intelligence and combat purposes.

Microsoft’s extended partnership with the Israeli military, despite public scrutiny, highlights the ongoing collaboration between tech giants and defense agencies in modern warfare.

Source: www.theguardian.com

Microsoft’s Cloud Business Experiences Double-Digit Growth as AI Innovation Propels Company Forward

Microsoft reported better-than-expected profits on Wednesday, driven by growth in its Azure cloud business, as five of the “Magnificent Seven” tech giants reveal their quarterly results this week.

“AI-driven transformation is reshaping jobs, outputs, and workflows across all roles, functions, and business processes,” stated Satya Nadella, the company’s CEO, in a press release. Nadella mentioned on a earnings call that Microsoft’s AI business is set to surpass a $10 billion annual run rate next quarter, making it the fastest-growing business in company history to achieve this milestone.

Microsoft’s focus on artificial intelligence garnered attention, with significant investments in Azure, the company’s rapidly expanding division. According to a press release, the division’s revenue grew by 22%. A day earlier, Google’s parent company Alphabet reported a nearly 35% year-on-year growth in its cloud business, reaching $11.35 billion, surpassing analyst forecasts.

Nadella announced that Azure now boasts 39,000 customers, marking an 80% increase year over year. The company has established AI data centers in over 60 regions globally, and Azure-OpenAI usage has more than doubled in the last six months.

The stock prices surged in after-hours trading. Earnings per share were $3.30, exceeding the anticipated $3.10, with revenue standing at $65.59 billion compared to the expected $64.51 billion.

Microsoft’s financial outlay has risen significantly with its emphasis on AI. On Wednesday, the company’s data center finance leases surpassed $108 billion in pre-commencement lease payments.

With soaring investments, Microsoft’s power requirements have soared in recent years. As part of a project to power its extensive data center fleet, the company is revamping Pennsylvania’s Three Mile Island nuclear power plant, known for a partial reactor meltdown in 1979. Microsoft has struck a deal to acquire all power generation capacity from the plant over the next two decades.

However, investors remain cautious about the significant AI bets made by tech giants and seek greater clarity on when these investments will yield returns. The “Magnificent Seven” companies – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla – with a combined market capitalization of $12 trillion and representing one-fifth of the S&P 500 index, have underperformed the market over the past quarter, with a cumulative 3.5% decline since July.

In a note to investors, Wedbush analyst Dan Ives characterized this quarter as a pivotal test for Microsoft and Azure amid heightened competition in the AI ecosystem.

“Our assessments of Microsoft this quarter are positive as we believe Redmond is taking the lead and accelerating Azure cloud deals with robust momentum into 2025 and beyond,” Ives remarked, referencing Microsoft’s headquarters location in Washington state. “We maintain an ‘outperform’ rating.”

Source: www.theguardian.com

Microsoft Surface Pro 11 Review: Microsoft’s Bold Move into Arm Technology Shows Promise

The latest Surface tablet from Microsoft is expected to bring significant improvements, moving beyond just being faster, quieter, and more efficient. The key change is the switch to an Arm-based processor at its core.

This shift to Arm chips is not new for Microsoft, but this particular machine, the Surface Pro 11, has been touted as the most successful one yet, outperforming its predecessors like the Surface Pro X from 2020 and Surface Pro 9 5G from last year.

Powered by Qualcomm’s Snapdragon X chipset, the Surface Pro 11 offers improved performance and efficiency. While the new Arm chips offer advantages, there are still some compromises in terms of software and accessories.

The exterior of the new Surface Pro remains largely unchanged from its predecessor. Photo: Samuel Gibbs/The Guardian

Despite the new chip, the Surface Pro 11 retains key features that made its predecessor successful, including a robust built-in kickstand, high-quality aluminum frame, improved speakers, and faster Windows Hello facial recognition. The 13-inch OLED display on the high-end model is top-notch, offering an exceptional viewing experience.

However, the Surface Pro 11 comes at a premium price, starting at £1,049 (€1,199/$999/AU$1,899) without the keyboard. The higher-end model with an OLED screen and faster Snapdragon X Elite chip is even pricier, starting at £1,549 (€1,799/$1,499/AU$2,699).

The Flex Keyboard continues to function even when detached, offering versatility for users. Photo: Samuel Gibbs/The Guardian

The Surface Pro 11 works well as a tablet, but a detachable keyboard is essential for maximizing its potential as a laptop. Microsoft offers various keyboard options, including the high-end Flex keyboard priced at £340.

Specification

  • Screen: 13″ LCD or OLED 2880×1920 (267 PPI) 120Hz

  • Processor: Qualcomm Snapdragon X Plus or X Elite

  • RAM: 16 or 32 GB

  • Storage: 256, 512GB or 1TB

  • Graphics: Qualcomm Adreno

  • Operating System: Windows 11 Home

  • Camera: 10.5MP rear, 12.2MP front, Windows Hello

  • Connectivity: Wi-Fi 7, Bluetooth 5.4, 2 x USB-4, Surface Connect

  • Size: 287 x 209 x 9.3mm

  • Weight: 895g (without keyboard)

Snapdragon Power

The tablet includes two USB4 ports and a Surface Connect port for charging and accessories, but lacks a headphone jack. Photo: Samuel Gibbs/The Guardian

The transition to the Arm-based Snapdragon X Elite chip offers improved efficiency and performance over traditional Intel chips. Performance comparisons have shown promising results, with the Surface Pro 11 performing on par with top Intel chips and Apple’s M1.

In everyday use, the Surface Pro 11 is fast and responsive, running quietly most of the time. Battery life is comparable to its Intel-powered predecessor, lasting around 8 hours. However, under heavy workloads, the Surface Pro 11 with Snapdragon X Elite chip offers better battery life.

While many apps have been updated to work well on the new chip, there are still compatibility issues for some legacy software, resulting in slower performance. Additionally, certain Windows apps and games may not work at all on the new system, highlighting the need for further updates from software developers.

Paint’s Cocreator uses AI to enhance manual drawing, helping you turn rough outlines into impressive works of art. Photo: Samuel Gibbs/The Guardian

The Surface Pro 11 also introduces new AI tools from Microsoft, such as Paint’s Cocreator system, offering unique creative capabilities. While these features add value, some AI functions may be limited by current implementation.

Sustainability

The tablet’s removable SSD is accessible through a small door on the back. Photo: Samuel Gibbs/The Guardian

The Surface Pro 11 demonstrates Microsoft’s commitment to sustainability, with 72% recycled materials incorporated into its design, including aluminum and rare earth metals. The company also offers repair services and recycling programs for old devices, contributing to a more environmentally-friendly approach.

Price

Starting prices for the Microsoft Surface Pro 11 range from £1,049 (€1,199/$999/AU$1,899) for the base model with Snapdragon X Plus and an LCD screen. The higher-end model with Snapdragon X Elite and an OLED screen starts at £1,549 (€1,799/$1,499/AU$2,699).

Keyboard options are available starting at £139.99 (€159.99 / $139.99 / AU$239.95), with the premium Flex keyboard priced at £340.

Verdict

The Surface Pro 11 raises the bar for Arm-based Windows tablets, offering a sleek, powerful, and quiet device. However, app compatibility remains a crucial factor in determining the overall user experience.

While the performance is commendable, the Surface Pro 11 falls short in delivering promised battery life improvements. The premium features like the OLED screen and Flex keyboard come at a steep price, which may deter some potential buyers.

Although Arm chips show promise for lightweight devices, issues with app compatibility and AI features indicate that there’s still work to be done to fully embrace this technology.

Strong Points: Great 120Hz OLED screen, impressive performance, quiet operation, USB4 connectivity, high-quality build, removable SSD, easy repairability.

Cons: High price, lack of included keyboard, app and accessory compatibility issues with Arm chips, absence of USB-A port, microSD card slot, or headphone jack, underwhelming AI features.

Source: www.theguardian.com

Microsoft’s AI investment yields higher returns than expected in the latest quarter

Microsoft’s significant investment in artificial intelligence continues to yield positive results, surpassing Wall Street expectations in the latest quarter.

Tech giants have poured billions into AI to boost the growth of cloud computing services, resulting in a more than 20% increase in cloud computing revenue.

According to Microsoft CEO Satya Nadella, the company’s AI tools are ushering in a new era of AI transformation, delivering enhanced business outcomes across various industries.

Nadella highlighted the accelerated integration of AI into Microsoft’s software and services, noting significant upticks in deals within the Azure cloud computing business, along with the introduction of Copilot AI software add-ons for small and medium-sized businesses.

Microsoft’s total revenue for the third quarter of fiscal 2024 rose by 17% to $61.86 billion, exceeding analysts’ projections. Earnings per share also increased by 20% to $2.94.

Following the positive earnings report, Microsoft’s shares saw a 4% rise in after-hours trading on Thursday.

With a market value close to $3 trillion, Microsoft remains the largest publicly traded company globally. The company’s stock price has grown by over 30% in the past year.

Microsoft’s strategic investments include acquiring ChatGPT developer OpenAI, positioning itself as a key player in the AI landscape and attracting industry talent.

The company is now focusing on leveraging its strong position in AI, as evidenced by AI contributing 6% to Azure’s revenue growth in the final months of 2023.

In addition, the integration of AI features into LinkedIn has boosted engagement on the platform, leading to a revenue increase of 10%.

Microsoft has secured notable AI deals, including a significant partnership with Coca-Cola for AI and cloud computing services, underscoring the company’s commitment to advancing AI technologies.

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Source: www.theguardian.com

Microsoft’s quantum computer could be the most dependable yet

Quantinuum H2 chip

Quantinum

Microsoft and quantum computing company Quantinuum claim to have developed a quantum computer with unprecedented levels of reliability. The ability to correct its own errors could be a step toward more practical quantum computers in the near future.

“What we did here gave me goosebumps. We showed that error correction is reproducible, works, and is reliable.” Krista Svoir At Microsoft.

Experts have long expected the arrival of practical quantum computers that can complete calculations too complex for traditional computers. Although quantum computers have steadily grown larger and more complex, this prediction has not yet been fully realized. One big reason for this is that all modern quantum computers are subject to errors, and researchers have found that it is technically difficult to implement algorithms to detect and correct errors during calculations. That's it.

The new experiment could be an important step toward overcoming this error problem. The researchers say that on his H2 quantum processor at Quantinuum, he ran more than 14,000 individual calculation routines without making a single error.

Errors occur even in classical computers, but error correction can be coded into programs by creating backup copies of the information being processed. This approach is not possible with quantum computing because quantum information cannot be copied. Instead, researchers distributed it across a group of connected qubits, or qubits, creating what are known as logical qubits. Microsoft and the Quantinuum team created four of these logical qubits using 30 qubits.

Svore said a process developed by Microsoft was used to generate these logical qubits, allowing them to run error-free, or fault-tolerant, experiments repeatedly. Typically, individual qubits are easily disturbed, but at the level of logical qubits, researchers were able to repeatedly detect and correct errors.

The approach was so successful, they say, that four logical qubits produced only 0.125 percent of the errors that would occur if 30 qubits were left ungrouped. This means that ungrouped qubits generate as many as 800 errors for every one error generated by a logical qubit.

“Having a logical error rate that is 800 times lower than that of physical qubits is a huge advance in the field and brings us one step closer to fault-tolerant quantum computing,” he said. says. mark suffman from the University of Wisconsin was not involved in the experiment.

jennifer strobley Quantinuum said the team's hardware is well-suited for new experiments because it provides advanced control over qubits and quantum computers have already achieved some of the lowest error rates ever. .

In 2023, a team of Harvard University researchers and their colleagues, including members of the quantum computing startup QuEra, broke the record for the largest number of logical qubits at once, 48. This is much more than his four logical qubits in the new device. But Strabley said the new device requires fewer physical qubits for each logical qubit, and the logical qubits have fewer errors than the one built by the Harvard team. “We used significantly fewer physical qubits and got better results,” she says.

However, some experts new scientist Without details about the experiment, researchers were not yet ready to qualify this new research as a breakthrough in quantum error correction.

It is generally believed that only quantum computers with more than 100 logical qubits can actually tackle scientifically and socially relevant problems in fields such as chemistry and materials science. The next challenge is to make everything bigger. Strabley and Svore say they are confident that the long-standing collaboration between Microsoft and Quantinuum will soon come to fruition.

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Source: www.newscientist.com

Microsoft’s Acquisition of Activision and Focus on AI Drive Robust Quarterly Earnings

Microsoft on Tuesday beat analysts’ expectations as its big bet on artificial intelligence paid off, particularly in its Azure cloud computing unit.


The software giant reported revenue of $62 billion, up 18% from a year ago, beating expected profits of $61.1 billion. The Net income increased 33% year over year to $21.9 billion.

CEO Satya Nadella said: “We have moved from talking about AI to applying AI at scale. By bringing AI to every layer of our technology stack, we are gaining new customers and unlocking new benefits in all areas. and boost productivity.”

Microsoft Cloud revenue grew 24% year over year. According to the earnings report, Xbox Content and Services segment revenue increased 61% due to the acquisition of Activision Blizzard. Activision increased the company’s overall revenue by 4%.

Microsoft, which recently overtook Apple to become the world’s most valuable company, last week became the second company in history to have a stock market valuation of $3 trillion.

Microsoft is considered a leading player in the AI ​​space, both through its own efforts and its close relationship with ChatGPT maker OpenAI, of which it is the largest shareholder. In November, Microsoft CEO Satya Nadella played a key role in Sam Altman’s return as CEO of OpenAI after Altman’s shocking firing. Microsoft occupies an observer seat on his OpenAI board.

Jeremy Goldman, Senior Director of Insider Intelligence/eMarketer Briefing, said: “The company’s recent financial performance, which showed an impressive 18% revenue growth in today’s earnings call, is driven by innovation and strategy. “It shows a powerful combination of foresight.” “While peers such as Alphabet and Meta lead the way in his AI industry, Microsoft is solidifying its position as the frontrunner in his AI race.”

Microsoft’s influence over AI development is rapidly expanding, drawing increased scrutiny from regulators and those outside the technology industry. Investors brushed off concerns that the stock would face stronger headwinds as the stock rose 10% over the past month.

The Federal Trade Commission announced last week that it had opened an investigation into the company’s $10 billion investment in OpenAI, as well as its dealings with Google, Amazon, and AI startup Anthropic. Britain’s Competition and Markets Authority is also investigating the deal. European Union regulators said they may launch a similar investigation. The New York Times sued OpenAI and Microsoft in early December, alleging copyright infringement by ChatGPT.

The quarter also marked the first time Microsoft reported revenue with Activision Blizzard, the premier game studio behind hits like Call of Duty and World of Warcraft. Microsoft completed its $69 billion acquisition of the video game maker in October after lengthy back-and-forth with regulators.

Citing job cuts within both companies, Microsoft last week laid off 1,900 employees across its gaming division, including Activision employees and those working on Xbox consoles.

Source: www.theguardian.com

Capitol Hill raises concerns over Microsoft’s close AI partnership with China

US lawmakers are calling on Microsoft to foster a positive relationship with China in the development of AI technology, despite recent efforts by Microsoft’s president, Brad Smith, to increase cooperation with the US adversary. During a meeting with Chinese Minister of Commerce Wang Wentao, Smith expressed the company’s eagerness to contribute to the digital transformation of China’s economy, with China looking forward to Microsoft’s potential collaboration in AI development.

However, this has raised concerns among US lawmakers and commentators, who fear that Microsoft’s extensive presence in China could pose a national security risk. Senator Josh Hawley has pushed back against Microsoft’s partnership with China, emphasizing the Chinese government’s desire for AI supremacy and the potential risks associated with such collaboration.

Rep. Mike Gallagher also expressed similar concerns, calling for stronger export controls for AI and other critical technologies due to the Chinese government’s intentions for sinister use of advanced AI tools.

The US-China relationship has recently deteriorated, and concerns over national security risks associated with Microsoft’s collaboration have been heightened. Microsoft CEO Satya Nadella emphasized the company’s primary focus on global markets excluding China, distancing the company from doing business with the Chinese government. However, the company has stressed its commitment to responsibly and ethically developing AI technology in China.

Despite heightened scrutiny and concerns, Microsoft continues to expand its operations in China, facing criticism from US lawmakers over potential exploitation of its technology by the Chinese government. Other US tech companies, such as Google and Meta, have pulled back from the region due to disputes with the Chinese government and increased US scrutiny.

Microsoft’s cooperation with China has raised concerns of technology transfers and potential security risks, as China has gained access to sensitive information about AI products and has been accused of misusing advanced technologies for human rights abuses.

Overall, Microsoft’s presence in China and its efforts to collaborate in AI development have sparked concern among US lawmakers and commentators, who fear the potential national security risks associated with such partnerships.

Source: nypost.com