• Interview with Zack Kass, Former GTM for Open AI
• Why you can deep-six the DeepSeek hype
• Gemini 2.0 is now available to everyone
• OpenAI has undergone its first ever rebrand, giving fresh life to ChatGPT interactions
• AI Has Shown Me My Future. Here's What I've Learned.
• Senator Hawley Proposes Jail Time for People Who Download DeepSeek
• Hugging Face researchers aim to build an 'open' version of OpenAI's deep researh tool
• Anthropic makes 'jailbreak' advance to stop AI models producing harmful results
• WSJ: The Manhattan Project Was Secret. Should America's AI Work Be Too?
• EU AI Act: Ban on certain AI practices and requirements for AI literacy come into effect
• Cathy Gellis: When It's Not Just A Coup But A CFAA Violation Too
• a16z slides on AI and voice
• Microsoft AI CEO Mustafa Suleyman poaches three Google DeepMind former colleagues, including two who built NotebookLM's Audio Overviews and worked on Astra
• Meta's CTO said the metaverse could be a 'legendary misadventure' if the company doesn't boost sales, leaked memo shows
• The Salvadoran Mega-Prison Offering to Take America's Worst Criminals
• Hilarious analyst on Tesla
• How the DJI Flip uses AI
• Marketers will have to market to AI agents
• AI systems could be 'caused to suffer' if consciousness achieved, says research

Hosts: Leo Laporte, Jeff Jarvis, and Mike Elgan

Guest: Zack Kass

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Microsoft reported that it earned a net income of $24.1 billion on revenues of $69.6 billion in the quarter ending December 31, the second quarter of its fiscal 2025. Those figures represent gains of 10 percent and 12 percent year-over-year (YOY), respectively.

Microsoft Earnings Overview

• Not much going on with client-side products and services, so a focus on AI
• Productivity and Business Processes: $29.4 billion in revenues, up 14 percent YOY. This was 42.2 percent of Microsoft's earnings
• Intelligent Cloud: $25.5 billion in revenues, up 19 percent YOY. This was 36.6 percent of Microsoft's earnings
• More Personal Computing: $14.7 billion, unchanged from the year-ago quarter. (Literally flat YOY.) This was 21.1 percent of Microsoft's earnings

Windows

• Microsoft testing AI-powered search in Windows 11 Dev
• New Canary build- Windows Midi Services preview, OneDrive resume, File Explorer folder resume
• Microsoft is experimenting with new Windows 11 UIs
• Microsoft Edge text rendering comes to all Chromium web browsers on Windows - That only took a few years
• Microsoft explains deprecation after using the term for decades

AI

• Week 2 of submitting to our new Chinese overlords
• Gemini catapults into the lead for a few days as Gemini 2.0 becomes broadly available
• Inspired by DeepSeek, OpenAI releases reasoning model to free ChatGPT
• This comes after Microsoft added it to Copilot
• Reasoning vs. traditional models
• Also, DeepSeek R1 is on Azure AI Foundry and GitHub
• Sam Altman discusses DeepSeek, more
• OpenAI offers up an AI research assistant

More Earnings (Lightning Round)

• Intel - $14.3 billion in revenues, down 7 percent
• AMD: Revenues up 24 percent, market share gains on Intel
• Apple - Record $124.2 billion in revenues, up 4 percent
• Alphabet/Google: Revenues at $96.47 billion, up 12 percent - CapEx expenditures closing in on MSFT
• Samsung - Revenues up 12 percent to $52.2 billion
• Spotify is profitable for full year for the first time

Microsoft 365

• Designer makes its way to Photos (Windows) and Microsoft 365 Copilot app (mobile)
• Microsoft is removing the VPN from Microsoft 365 Family and Personal
• Outlook for Mac to get email recall feature

Xbox

• Starfield is coming to Game Pass Standard this month, more Game Pass titles
• Forza Horizon 5 is coming to PS5
• Two Age of Empires titles are coming to PS5
• Remember that Microsoft partnership with Start.gg? Me neither
• Nintendo revenues, Switch sales fall more than expected, will no longer beat DS this fiscal year

Tips and Picks

• Tip of the week: It's time for an online account audit
• App pick of the week: Another week of big browser update
• RunAs Radio this week: Entra ID Protection with Corissa Koopmans
• Margarita of the week: 2 oz white tequila, 1.5 oz Triple Sec, 1 oz fresh lime juice.

Hosts: Leo Laporte and Paul Thurrott

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Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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• Why was DeepSeek banned by Italian authorities?
• What internal proprietary DeepSeek data was found online?
• What is "DeepSeek" anyway? Why do we care, and what does it mean?
• Did Microsoft just make OpenAI's strong model available for free?
• Google explains how generative AI can be and is being misused.
• An actively exploited and unpatched Zyxel router vulnerability.
• The new US "ROUTERS" Act.
• Is pirate-site blocking legislation justified or is it censorship?
• Russia's blocked website count tops 400,000.
• Microsoft adds "scareware" warnings to Edge.
• Bitwarden improves account security.
• What's still my favorite disk imaging tool?
• And let's take a close look into the extraction of proscribed knowledge from today's AI

Show Notes - https://www.grc.com/sn/SN-1011-Notes.pdf

Hosts: Steve Gibson and Leo Laporte

Download or subscribe to Security Now at https://twit.tv/shows/security-now.

You can submit a question to Security Now at the GRC Feedback Page.

For 16kbps versions, transcripts, and notes (including fixes), visit Steve's site: grc.com, also the home of the best disk maintenance and recovery utility ever written Spinrite 6.

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