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The White House Frames the Past by Erasing Parts of It

Soon after the new administration arrived, things began to go missing from the White House website.

They weren’t just the partisan policy platforms that typically disappear during a presidential transition. Informational pages about the Constitution and past presidents, up in various forms since President George W. Bush was in office, all vanished.

Thousands of other government web pages had also been taken down or modified, including content about vaccines, hate crimes, low-income children, opioid addiction and veterans, before a court order temporarily blocked part of the sweeping erasure. A Justice Department database tracking criminal charges and convictions linked to the Jan. 6, 2021, attack on the Capitol was removed. Segments of data sets are gone, some of the experts who produced them were dismissed, and many mentions of words like “Black,” “women” and “discrimination” have evaporated.

President Trump’s team is selectively stripping away the public record, reconstructing his preferred vision of America in the negative space of purged history, archivists and historians said. As data and resources are deleted or altered, something foundational is also at risk: Americans’ ability to access and evaluate their past, and with it, their already shaky trust in facts.

“This is not a cost-cutting mechanism,” said Kenny Evans, who studies science and technology policy at Rice University’s Baker Institute for Public Policy and runs the White House Scientists Archive at the school. “This slide toward secrecy and lack of transparency is an erosion of democratic norms.”

Anna Kelly, a White House spokeswoman, said on X that the disposal process was standard practice for old courtesy copies of paperwork that were largely backed up on classified computer systems. In an emailed statement, she did not address concerns about the removed records, but said that the president regularly communicated with news outlets and directly with the public and was “leading the most transparent administration in history.”

“He is adding transparency by exposing the vast waste, fraud and abuse across the federal government and restoring accountability to taxpayers,” she said.

The campaign of deletion does more than amplify the administration’s policy priorities — it buries evidence of the alternatives in a MAGA-branded memory hole. Several information experts said that Mr. Trump’s executive orders have authoritarian overtones, reminiscent of when Russia cloned Wikipedia, an online encyclopedia, and stripped it of unflattering material. Information experts and civil rights groups fear that a historical vacuum could jeopardize accountability and breed mistrust, especially in an already hostile political environment for researchers who are trying to fight disinformation.

“There are tectonic plates that are shifting, and it’s a new version of truth that is being portrayed, and that, I think, is the most profound danger we have ever faced as a country,” said Laurence H. Tribe, a constitutional scholar and professor emeritus at Harvard Law School.

Even Utah’s Republican lieutenant governor called on Mr. Trump to “bring back our history” after the first American woman to legally vote was removed from the website for Arlington National Cemetery, along with a section on other notable women (her profile is once again available, but the women’s history section is not). References to transgender people disappeared from the National Park Service’s web page for the Stonewall National Monument.

Mr. Trump is not known as an enthusiast of document preservation: Past employees have described his penchant for ripping up documents and flushing papers down the toilet.

But his administration has surfaced some government data. In March, the National Archives released some 64,000 documents about the assassination of President John F. Kennedy, including accounting records that contained the Social Security numbers of dozens of government workers from the late 1970s, some of them still living.

The restructuring effort led by Elon Musk through his Department of Government Efficiency, which had been caught in a series of high-profile errors, tried to delete or obscure the mistakes before reversing course last month and adding more details that fact-checkers could use to confirm its claims about the savings it had achieved from canceling federal grants.

The historical record, however, remains under intense pressure and not just from the government.

Mr. Musk has a vendetta against Wikipedia, which the billionaire derided as “Wokepedia” last year. He called the encyclopedia, which is written and edited by volunteers from the general public, “an extension of legacy media propaganda” after an entry described a gesture he had made during Mr. Trump’s recent inauguration as being “compared to a Nazi salute.” Jimmy Wales, a founder of Wikipedia, pushed back on the social media platform X, saying “that’s fact. Every element of it.”

Data Foundation, a think tank, said in a report last month that changes in federal evidence gathering are coinciding with similar shifts in the private data sector. Those include more than 2,000 layoffs and other departures in March and several analysis firms shutting down entirely. A year ago, Google also removed links to cached pages from its search results, stripping away a longtime feature that helped researchers and others track changes on websites.

Resources from the government have become especially important as researchers find themselves limited or cut off from data reserves kept by social media companies, said Samuel Woolley, the disinformation studies chair at the University of Pittsburgh.

“The idea that suddenly we no longer need oversight or access to the information that allows us to conduct oversight is worrying,” he said. “Getting rid of public records and people who study things like influence operations amounts to a kind of censorship by omission.”

Outside the government, many archivists are now rushing to preserve endangered material.

The Data Rescue Project, which launched in February, is cataloging preservation efforts and backed up government data sets. Since 2008, the End of Term Web Archive has conducted “a comprehensive harvest” of federal government domains and chronicled changes from administration to administration. Initiatives like the Environmental Data & Governance Initiative and the Open Environmental Data Project are storing copies of government climate data.

Another key participant: The Internet Archive, a 28-year-old nonprofit library housed in a stately former Christian Science church in San Francisco. Some 140 workers, mostly engineers, archive more than a billion URLs a day with help from partners such as Cloudflare, WordPress, Reddit and Wikipedia’s parent organization, Wikimedia. The work is funded through donations and web archiving agreements with more than 1,300 schools, museums and libraries.

The Archive has collected more than 700,000 terabytes of archived web pages as one of the partners working on the End of Term project, identifying more than 150,000 government pages that have gone offline since the inauguration.

“What we’re seeing this time around is unprecedented, both in terms of the scope and the scale of the web-based resources that are being taken offline, and material on those pages that is being changed,” said Mark Graham, the director of the Wayback Machine, a digital repository operated through the Internet Archive.

The Archive has faced difficulties in recent years, such as copyright lawsuits from record labels and book publishers seeking hundreds of millions of dollars in damages (the organization had a $28 million budget in 2023). It has also been targeted by cyberattacks.

The Trump administration, however, has not been an obstacle. Mr. Musk has called the archive “awesome” and “a public good that should exist,” even as he complained about “a ton of negative” content that concerned him.

In February, government lawyers argued that the removal of information from the C.D.C. website caused limited harm because the scrubbed pages could still be viewed on the Wayback Machine. A federal judge disagreed, noting that the site does not capture every page, and the ones that are archived do not appear on search engines and can only be found using their original URL.

Mr. Graham, an Air Force veteran who can rattle off URLs from memory, said he has worked seven days a week with few breaks since Mr. Trump took office.

“We’ve seen examples throughout history and all over the world where governments attempt to change culture, change the values of a population by changing and/or restricting access to information,” he said. “I think we still see that to this day.”

Microsoft is shutting down Skype after buying it 14 years ago for $8.5 billion

Microsoft is pulling the plug on Skype, the pioneering Internet telecommunications and video call platform it bought nearly 14 years ago for $8.5 billion

“We will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub,” already used by hundreds of millions of people at work, school and home,” Jeff Teper, president of collaborative apps and platforms at the Redmond, Washington-based software company, said on Friday in a statement. 

Microsoft in late 2012 scrapped its own instant-messaging tool, Messenger, after buying Skype the prior year. But in the more than decade since, services including FaceTime, Messenger and WhatsApp have let people connect in ways that made it difficult for Skype to compete. 

The difficulties were illustrated in particular during the early days of the Covid-19 pandemic that saw people stuck at home flocking to Zoom. Microsoft launched Teams for consumers in 2020, while saying at the time it remained committed to Skype.

Skype was launched in 2003 by entrepreneurs Niklas Zennstrom and Janus Friis, with the company’s name combining “Sky” with a reference to peer-to-peer networks, the technology that during the dotcom boom became an important new way for sharing online files and data. 

The company’s founders first sold Skype to eBay in 2005 for $2.6 billion. Microsoft’s acquisition in May of 2011, at the time the biggest ever purchase for the software maker, gave it access to a user base of about 170 million people who logged in to Skype each month. That count morphed to more than 300 million monthly users by 2016, but had shriveled to 36 million in 2023, Microsoft said.

Those now using Skype will have time to log in to the Microsoft Teams app and have their message history, group chats and contacts available without having to create an additional account, according to Microsoft. Users can also opt to export their data to another app.

Skype will be available until May 5, giving users about two months to decide which option they want to take.

Microsoft AI chief sees benefits to AI models that are months behind

Microsoft owns lots of Nvidia graphics processing units, but it isn’t using them to develop state-of-the-art artificial intelligence models.

There are good reasons for that position, Mustafa Suleyman, the company’s CEO of AI, told CNBC’s Steve Kovach in an interview on Friday. Waiting to build models that are “three or six months behind” offers several advantages, including lower costs and the ability to concentrate on specific use cases, Suleyman said.

It’s “cheaper to give a specific answer once you’ve waited for the first three or six months for the frontier to go first. We call that off-frontier,” he said. “That’s actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models.”

Suleyman made a name for himself as a co-founder of DeepMind, the AI lab that Google bought in 2014, reportedly for $400 million to $650 million. Suleyman arrived at Microsoft last year alongside other employees of the startup Inflection, where he had been CEO.

More than ever, Microsoft counts on relationships with other companies to grow.

It gets AI models from San Francisco startup OpenAI and supplemental computing power from newly public CoreWeave in New Jersey. Microsoft has repeatedly enriched Bing, Windows and other products with OpenAI’s latest systems for writing human-like language and generating images.

Microsoft’s Copilot will gain “memory” to retain key facts about people who repeatedly use the assistant, Suleyman said Friday at an event in Microsoft’s Redmond, Washington, headquarters to commemorate the company’s 50th birthday. That feature came first to OpenAI’s ChatGPT, which has 500 million weekly users.

Through ChatGPT, people can access top-flight large language models such as the o1 reasoning model that takes time before spitting out an answer. OpenAI introduced that capability in September — only weeks later did Microsoft bring a similar capability called Think Deeper to Copilot.

Microsoft occasionally releases open-source small-language models that can run on PCs. They don’t require powerful server GPUs, making them different from OpenAI’s o1.

OpenAI and Microsoft have held a tight relationship shortly after the startup launched its ChatGPT chatbot in late 2022, effectively kicking off the generative AI race. In total, Microsoft has invested $13.75 billion in the startup, but more recently, fissures in the relationship between the two companies have begun to show.

Microsoft added OpenAI to its list of competitors in July 2024, and OpenAI in January announced that it was working with rival cloud provider Oracle on the $500 billion Stargate project. That came after years of OpenAI exclusively relying on Microsoft’s Azure cloud. Despite OpenAI partnering with Oracle, Microsoft in a blog post announced that the startup had “recently made a new, large Azure commitment.”

“Look, it’s absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft,” Suleyman said. “At the same time, I think about these things over five and 10 year periods. You know, until 2030 at least, we are deeply partnered with OpenAI, who have [had an] enormously successful relationship for us.

Microsoft is focused on building its own AI internally, but the company is not pushing itself to build the most cutting-edge models, Suleyman said.

“We have an incredibly strong AI team, huge amounts of compute, and it’s very important to us that, you know, maybe we don’t develop the absolute frontier, the best model in the world first,” he said. “That’s very, very expensive to do and unnecessary to cause that duplication.”

WATCH: Microsoft Copilot beginning of a seismic shift in AI integration, says Microsoft AI CEO Suleyman

Why Trump’s Tariffs Are Rattling Even Meta

When President Trump announced sweeping tariffs this week, some of the biggest tech companies had obvious reasons for worry.

Apple, Dell and Oracle — which rely on hardware and global supply chains that are in the direct line of fire from tariffs — saw their shares go into free-fall. But there was another big tech company whose stock took a pummeling even though its core business has little to do with hardware: Meta.

Shares of the company, which owns Facebook, Instagram and WhatsApp, fell $52 to $531.62 on Thursday and were down again on Friday. In total, Meta shed a whopping 9 percent of its market capitalization on Thursday.

The reasons for Meta’s slide are less obvious. But close watchers of the social networking and metaverse company know it is just as vulnerable to Mr. Trump’s trade actions as some of its Silicon Valley peers, even if the details are more complicated. Here’s why.

That’s not entirely true, but for our purposes let’s look at Meta’s main business: digital advertising.

Meta rakes in billions of dollars in revenue by selling ads across Facebook and Instagram. Some of those advertisers are large brands, including Procter & Gamble, L’Oreal, McDonald’s and Nestlé. Those companies buy ads on Facebook for so-called brand awareness campaigns. Think of it as a way of nudging people to buy a specific product like Q-Tips instead of generic cotton swabs the next time they go to the store.

But a vast majority of Meta’s advertisers are small and medium-size businesses.

Those companies buy a different kind of ad, called “direct response advertising.” These ads typically encourage an action of some sort, like downloading a company’s app or buying a kitchen gadget featured on an Instagram video.

E-commerce transactions like these make up an enormous amount of Meta’s very successful online advertising business. Susan Li, Meta’s chief financial officer, said in an earnings call this year that online commerce ads were the “largest contributor to year-over-year growth” to the company’s advertising revenue.

The effect of tariffs on Meta’s ad business is simple. Many of its small and medium-size advertisers are from all across the world. President Trump’s tariffs will instantly make it more expensive for them to sell their products to customers in the United States.

That is likely to lead to a pullback in overall purchases from consumers and fewer people buying products from Facebook and Instagram. That could, in turn, lead brands to spend less on advertising across those apps.

Meta has additional complicating factors that may affect its business more than other advertising companies.

Last year, the company disclosed that 10 percent of its revenue in 2023 was from Chinese companies spending heavily on advertising across Facebook and Instagram, an ad blitz aimed at garnering a foothold in lucrative Western markets.

Much of that growth was fueled by the explosive expansion of the fast-fashion company Shein — which is based in Singapore but has a supply chain that is largely in China — and the e-commerce app Temu, a low-cost, Amazon-like company owned by the Chinese e-commerce conglomerate Pinduoduo. Temu was estimated to have spent $3 billion in marketing costs in 2023 alone, according to estimates from Bernstein Research.

Chinese companies and goods have been hit hard by President Trump’s tariffs. In addition, Mr. Trump eliminated the “de minimis exemption,” which had exempted exporters sending goods valued at or less than $800 from having to pay duties. The exemption was essential to the Temu and Shein business model of selling low-cost goods to Americans.

If Mr. Trump’s tariffs stick, they could drastically hurt these exporters of cheap Chinese goods, which means they could slash their advertising on Facebook and Instagram.

In an investor call last year, Ms. Li defended the company’s exposure to any fluctuation in spending by Temu and Shein.

She said two-thirds of Meta’s Chinese ad revenue came from advertisers “outside the top 10 spenders in that country in 2023.” Her point being: Even if Temu and Shein pulled back, many other Chinese advertisers were still buying Facebook and Instagram ads.

Unfortunately for Meta, that broad base of advertisers is no hedge against Mr. Trump’s tariffs, which will affect all Chinese ad buyers.

“Because their Chinese ad revenue is so evenly distributed, it’s actually worse for them now,” said Eric Seufert, an independent mobile advertising analyst who follows Meta. “They don’t just have to worry about Temu or Shein dropping off. They have to worry about everyone.”

Meta did not respond to requests for comment.

To be fair, Meta isn’t alone. E-commerce tech companies like Shopify and Stripe could face headwinds if global trade slows. Google and Amazon also have enormous ad businesses that could be hampered by a pullback in Chinese companies’ spending.

We will hear Meta’s defense soon enough. The company is expected to answer investors’ questions when it reports quarterly earnings this month.

Remarkable NASA photo captures U.S. civilian jet breaking the sound barrier: “Makes the invisible visible”

A little over a month after a civilian jet broke the sound barrier, Boom Supersonic and NASA have released a photo of one of the aircraft’s historic test flights over the Mojave Desert.

The image released Monday shows the XB-1 aircraft, which Boom Supersonic said is the “first civil supersonic jet made in America,” during its second supersonic flight on Feb. 10. The company said it partnered with NASA using a technique known as Schlieren photography to visualize what can’t be seen with the naked eye.

“This image makes the invisible visible,” Boom Supersonic founder and CEO Blake Scholl said in a news release.

Image provided by Boom Supersonic and NASA shows XB-1 breaking the sound barrier for the second time.

NASA/Boom Supersonic Handout


Chief test pilot Tristan “Geppetto” Brandenburg had to make sure XB-1 was in the right place at the right time to allow NASA’s team on the ground to photograph it in-flight as it eclipsed the sun, the Colorado-based company said. Crews used telescopes with special filters that can detect air distortions like shock waves to capture the image.

The photo was taken during the XB-1’s 13th overall test flight, according to the company, but it was the second time it flew at supersonic speed, this time reaching Mach 1.18, or 772 mph, Boom Supersonic said.

Scholl said that the XB-1 didn’t make an audible sonic boom that typically occurs when an aircraft is flying faster than the speed of sound. The captured data suggests that, at certain speed and atmospheric conditions, the sonic boom refracts in the atmosphere and never reaches the ground. The finding may lead the way for supersonic commercial flights without sonic booms, the company said in its news release.

NASA first visually captured supersonic shock waves in 2019 after a decade of research. The technology was developed in part to aid the space agency in testing its own supersonic aircraft, X-59.

“Knowing where the air is really moving tells you a lot about what your vehicle is doing, how efficient it is, and how you can make it better,” Ed Haering, principal investigator for the Schlieren photography, said in a 2023 NASA news release.

Microsoft turns 50, future success built on ability to ‘win the new’

Microsoft CEO Satya Nadella speaks during the Microsoft Build conference at Microsoft headquarters in Redmond, Washington, on May 21, 2024.

Jason Redmond | AFP | Getty Images

A half-century ago, childhood friends Bill Gates and Paul Allen started Microsoft from a strip mall in Albuquerque, New Mexico. Five decades and almost $3 trillion later, the company celebrates its 50th birthday on Friday from its sprawling campus in Redmond, Washington.

Now the second most valuable publicly traded company in the world, Microsoft has only had three CEOs in its history, and all of them are in attendance for the monumental event. One is current CEO Satya Nadella. The other two are Gates and Steve Ballmer, both among the 11 richest people in the world due to their Microsoft fortunes.

While Microsoft has mostly been on the ascent of late, with Nadella turning the company into a major power player in cloud computing and artificial intelligence, the birthday party lands at an awkward moment.

The company’s stock price has dropped for four consecutive months for the first time since 2009 and just suffered its steepest quarterly drop in three years. That was all before President Donald Trump’s announcement this week of sweeping tariffs, which sent the Nasdaq tumbling on Thursday and Microsoft down another 2.4%.

Cloud computing has been Microsoft’s main source of new revenue since Nadella took over from Ballmer as CEO in 2014. But the Azure cloud reported disappointing revenue in the latest quarter, a miss that finance chief Amy Hood attributed in January to power and space shortages and a sales posture that focused too much on AI. Hood said revenue growth in the current quarter will fall to 10% from 17% a year earlier

Nadella said management is refining sales incentives to maximize revenue from traditional workloads, while positioning the company to benefit from the ongoing AI boom.

“You would rather win the new than just protect the past,” Nadella told analysts on a conference call.

The past remains healthy. Microsoft still generates around one-fifth of its roughly $262 billion in annual revenue from productivity software, mostly from commercial clients. Windows makes up around 10% of sales.

Meanwhile, the company has used its massive cash pile to orchestrate its three largest acquisitions on record in a little over eight years, snapping up LinkedIn in late 2016, Nuance Communications in 2022 and Activision Blizzard in 2023, for a combined $121 billion.

“Microsoft has figured out how to stay ahead of the curve, and 50 years later, this is a company that can still be on the forefront of technology innovation,” said Soma Somasegar, a former Microsoft executive who now invests in startups at venture firm Madrona. “That’s a commendable place for the company to be in.”

When Somasegar gave up his corporate vice president position at Microsoft in 2015, the company was fresh off a $7.6 billion write-down from Ballmer’s ill-timed purchase of Nokia’s devices and services business.

Microsoft is now in a historic phase of investment. The company has built a $13.8 billion stake in OpenAI and last year spent almost $76 billion on capital expenditures and finance leases, up 83% from a year prior, partly to enable the use of AI models in the Azure cloud. In January, Nadella said Microsoft has $13 billion in annualized AI revenue, more even than OpenAI, which just closed a financing round valuing the company at $300 billion.

Microsoft’s spending spree has constrained free cash flow growth. Guggenheim analysts wrote in a note after the company’s earnings report in January, “You just have to believe in the future.” 

Of the 35 Microsoft analysts tracked by FactSet, 32 recommend buying the stock, which has appreciated tenfold since Nadella became CEO. Azure has become a fearsome threat to Amazon Web Services, which pioneered the cloud market in the 2000s, and startups as well as enterprises are flocking to its cloud technology.

Winston Weinberg, CEO of legal AI startup Harvey, uses OpenAI models through Azure. Weinberg lauded Nadella’s focus on customers of all sizes.

“Satya has literally responded to emails within 15 minutes of us having a technical problem, and he’ll route it to the right person,” Weinberg said.

Still, technology is moving at an increasingly rapid pace and Microsoft’s ability to stay on top is far from guaranteed. Industry experts highlighted four key issues the company has to address as it pushes into its next half-century.

Microsoft didn’t respond to a request for comment.

Regulation

There’s some optimism that the Trump administration and a new head of the Federal Trade Commission will open up the door to the kinds of deal-making that proved very challenging during Joe Biden’s presidency, when Lina Khan headed the FTC.

But regulatory uncertainty remains.

It’s not a new risk for Microsoft. In 1995, the company paid a $46 million breakup fee to tax software maker Intuit after the Justice Department filed suit to block the proposed deal. Years later, the DOJ got Microsoft to revamp some of its practices after a landmark antitrust case.

Microsoft pushed through its largest acquisition ever, the $75 billion purchase of video game publisher Activision, during Biden’s term. But only after a protracted legal battle with the FTC.

At the very end of Biden’s time in office, the FTC opened an antitrust investigation on Microsoft. That probe is ongoing, Bloomberg reported in March.

Nadella has cultivated a relationship with Trump. In January, the two reportedly met for lunch at Trump’s Mar-a-Lago resort in Florida, alongside Tesla CEO Elon Musk.

President Donald Trump shakes hands with Microsoft CEO Satya Nadella during an American Technology Council roundtable at the White House in Washington on June 19, 2017.

Nicholas Kamm | AFP | Getty Images

The U.S. isn’t the only concern. The U.K.’s Competition and Markets Authority said in January that an independent inquiry found that “Microsoft is using its strong position in software to make it harder for AWS and Google to compete effectively for cloud customers that wish to use Microsoft software on the cloud.”

Microsoft last year committed to unbundling Teams from Microsoft 365 productivity software subscriptions globally to address concerns from the European Union’s executive arm, the European Commission.

Noncore markets

Fairly early in Microsoft’s history the company became the world’s largest software maker. And in cloud, Microsoft is the biggest challenger to AWS. Most of the company’s revenue comes from corporations, schools and governments.

But Microsoft is in other markets where its position is weaker. Those include video games, laptops and search advertising.

Mary Jo Foley, editor in chief at advisory group Directions on Microsoft, said the company may be better off focusing on what it does best, rather than continuing to offer Xbox consoles and Surface tablets.

“Microsoft is not good at anything in the consumer space (with the possible exception of gaming),” wrote Foley, who has covered the company on and off since 1984. “You’re wasting time and money on trying to figure it out. Microsoft is an enterprise company — and that is more than OK.”

It’s unlikely Microsoft will back away from games, particularly after the Activision deal. Nearly $12 billion of Microsoft’s $69.6 billion in fourth-quarter revenue came from gaming, search and news advertising, and consumer subscriptions to the Microsoft 365 productivity bundle. That doesn’t include sales of devices, Windows licenses or advertising on LinkedIn.

“As a company, Microsoft’s all-in on gaming,” Nadella said in 2021 in an appearance alongside gaming unit head Phil Spencer. “We believe we can play a leading role in democratizing gaming and defining that future of interactive entertainment, quite frankly, at scale.”

AI pressure

Microsoft has an unquestionably strong position in AI today, thanks in no small part to its early alliance with OpenAI. Microsoft has added the startup’s AI models to Windows, Excel, Bing and other products.

The breakout has been GitHub Copilot, which generates source code and answers developers’ questions. GitHub reached $2 billion in annualized revenue last year, with Copilot accounting for more than 40% of sales growth for the business. Microsoft bought GitHub in 2018 for $7.5 billion.

Microsoft CEO Satya Nadella, right, speaks as OpenAI CEO Sam Altman looks on during the OpenAI DevDay event in San Francisco on Nov. 6, 2023.

Justin Sullivan | Getty Images

But speedy deployment in AI can be worrisome.

The company is “not providing the underpinnings needed to deploy AI properly, in terms of security and governance — all because they care more about being ‘first,'” Foley wrote. Microsoft also hasn’t been great at helping customers understand the return on investment, she wrote.

AI-ready Copilot+ PCs, which Microsoft introduced last year, aren’t gaining much traction. The company had to delay the release of the Recall search feature to prevent data breaches. And the Copilot assistant subscription, at $30 a month for customers of the Microsoft 365 productivity suite, hasn’t become pervasive in the business world.

“Copilot was really their chance to take the lead,” said Jason Wong, an analyst at technology industry researcher Gartner. “But increasingly, what it’s seeming like is Copilot is just an add-on and not like a net-new thing to drive AI.”

Innovation

At 50, the biggest question facing Microsoft is whether it can still build impressive technology on its own. Products like the Surface and HoloLens augmented reality headset generated buzz, but they hit the market years ago.

Teams was a novel addition to its software bundle, though the app’s success came during the Covid pandemic after the explosive growth in products like Zoom and Slack, which Salesforce acquired. And Microsoft is still researching quantum computing.

In AI, Microsoft’s best bet so far was its investment in OpenAI. Somasegar said Microsoft is in prime position to be a big player in the market.

“To me, it’s been 2½ years since ChatGPT showed up, and we are not even at the Uber and Airbnb moment,” Somasegar said. “There is a tremendous amount of value creation that needs to happen in AI. Microsoft as much as everybody else is thinking, ‘What does that mean? How do we get there?'”

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This A.I. Forecast Predicts Storms Ahead

The year is 2027. Powerful artificial intelligence systems are becoming smarter than humans, and are wreaking havoc on the global order. Chinese spies have stolen America’s A.I. secrets, and the White House is rushing to retaliate. Inside a leading A.I. lab, engineers are spooked to discover that their models are starting to deceive them, raising the possibility that they’ll go rogue.

These aren’t scenes from a sci-fi screenplay. They’re scenarios envisioned by a nonprofit in Berkeley, Calif., called the A.I. Futures Project, which has spent the past year trying to predict what the world will look like over the next few years, as increasingly powerful A.I. systems are developed.

The project is led by Daniel Kokotajlo, a former OpenAI researcher who left the company last year over his concerns that it was acting recklessly.

While at OpenAI, where he was on the governance team, Mr. Kokotajlo wrote detailed internal reports about how the race for artificial general intelligence, or A.G.I. — a fuzzy term for human-level machine intelligence — might unfold. After leaving, he teamed up with Eli Lifland, an A.I. researcher who had a track record of accurately forecasting world events. They got to work trying to predict A.I.’s next wave.

The result is “AI 2027,” a report and website released this week that describes, in a detailed fictional scenario, what could happen if A.I. systems surpass human-level intelligence — which the authors expect to happen in the next two to three years.

“We predict that A.I.s will continue to improve to the point where they’re fully autonomous agents that are better than humans at everything by the end of 2027 or so,” Mr. Kokotajlo said in a recent interview.

There’s no shortage of speculation about A.I. these days. San Francisco has been gripped by A.I. fervor, and the Bay Area’s tech scene has become a collection of warring tribes and splinter sects, each one convinced that it knows how the future will unfold.

Some A.I. predictions have taken the form of a manifesto, such as “Machines of Loving Grace,” a 14,000-word essay written last year by Dario Amodei, the chief executive of Anthropic, or “Situational Awareness,” a report by the former OpenAI researcher Leopold Aschenbrenner that was widely read in policy circles.

The people at the A.I. Futures Project designed theirs as a forecast scenario — essentially, a piece of rigorously researched science fiction that uses their best guesses about the future as plot points. The group spent nearly a year honing hundreds of predictions about A.I. Then, they brought in a writer — Scott Alexander, who writes the blog Astral Codex Ten — to help turn their forecast into a narrative.

“We took what we thought would happen and tried to make it engaging,” Mr. Lifland said.

Critics of this approach might argue that fictional A.I. stories are better at spooking people than educating them. And some A.I. experts will no doubt object to the group’s central claim that artificial intelligence will overtake human intelligence.

Ali Farhadi, the chief executive of the Allen Institute for Artificial Intelligence, an A.I. lab in Seattle, reviewed the “AI 2027” report and said he wasn’t impressed.

“I’m all for projections and forecasts, but this forecast doesn’t seem to be grounded in scientific evidence, or the reality of how things are evolving in A.I.,” he said.

There’s no question that some of the group’s views are extreme. (Mr. Kokotajlo, for example, told me last year that he believed there was a 70 percent chance that A.I. would destroy or catastrophically harm humanity.) And Mr. Kokotajlo and Mr. Lifland both have ties to Effective Altruism, another philosophical movement popular among tech workers that has been making dire warnings about A.I. for years.

But it’s also worth noting that some of Silicon Valley’s largest companies are planning for a world beyond A.G.I., and that many of the crazy-seeming predictions made about A.I. in the past — such as the view that machines would pass the Turing Test, a thought experiment that determines whether a machine can appear to communicate like a human — have come true.

In 2021, the year before ChatGPT launched, Mr. Kokotajlo wrote a blog post titled “What 2026 Looks Like,” outlining his view of how A.I. systems would progress. A number of his predictions proved prescient, and he became convinced that this kind of forecasting was valuable, and that he was good at it.

“It’s an elegant, convenient way to communicate your view to other people,” he said.

Last week, Mr. Kokotajlo and Mr. Lifland invited me to their office — a small room in a Berkeley co-working space called Constellation, where a number of A.I. safety organizations hang a shingle — to show me how they operate.

Mr. Kokotajlo, wearing a tan military-style jacket, grabbed a marker and wrote four abbreviations on a large whiteboard: SC > SAR > SIAR > ASI. Each one, he explained, represented a milestone in A.I. development.

First, he said, sometime in early 2027, if current trends hold, A.I. will be a superhuman coder. Then, by mid-2027, it will be a superhuman A.I. researcher — an autonomous agent that can oversee teams of A.I. coders and make new discoveries. Then, in late 2027 or early 2028, it will become a superintelligent A.I. researcher — a machine intelligence that knows more than we do about building advanced A.I., and can automate its own research and development, essentially building smarter versions of itself. From there, he said, it’s a short hop to artificial superintelligence, or A.S.I., at which point all bets are off.

If all of this sounds fantastical … well, it is. Nothing remotely like what Mr. Kokotajlo and Mr. Lifland are predicting is possible with today’s A.I. tools, which can barely order a burrito on DoorDash without getting stuck.

But they are confident that these blind spots will shrink quickly, as A.I. systems become good enough at coding to accelerate A.I. research and development.

Their report focuses on OpenBrain, a fictional A.I. company that builds a powerful A.I. system known as Agent-1. (They decided against singling out a particular A.I. company, instead creating a composite out of the leading American A.I. labs.)

As Agent-1 gets better at coding, it begins to automate much of the engineering work at OpenBrain, which allows the company to move faster and helps build Agent-2, an even more capable A.I. researcher. By late 2027, when the scenario ends, Agent-4 is making a year’s worth of A.I. research breakthroughs every week, and threatens to go rogue.

I asked Mr. Kokotajlo what he thought would happen after that. Did he think, for example, that life in the year 2030 would still be recognizable? Would the streets of Berkeley be filled with humanoid robots? People texting their A.I. girlfriends? Would any of us have jobs?

He gazed out the window, and admitted that he wasn’t sure. If the next few years went well and we kept A.I. under control, he said, he could envision a future where most people’s lives were still largely the same, but where nearby “special economic zones” filled with hyper-efficient robot factories would churn out everything we needed.

And if the next few years didn’t go well?

“Maybe the sky would be filled with pollution, and the people would be dead?” he said nonchalantly. “Something like that.”

One risk of dramatizing your A.I. predictions this way is that if you’re not careful, measured scenarios can veer into apocalyptic fantasies. Another is that, by trying to tell a dramatic story that captures people’s attention, you risk missing more boring outcomes, such as the scenario in which A.I. is generally well behaved and doesn’t cause much trouble for anyone.

Even though I agree with the authors of “AI 2027” that powerful A.I. systems are coming soon, I’m not convinced that superhuman A.I. coders will automatically pick up the other skills needed to bootstrap their way to general intelligence. And I’m wary of predictions that assume that A.I. progress will be smooth and exponential, with no major bottlenecks or roadblocks along the way.

But I think this kind of forecasting is worth doing, even if I disagree with some of the specific predictions. If powerful A.I. is really around the corner, we’re all going to need to start imagining some very strange futures.

Big Tech’s big bet on nuclear power to fuel artificial intelligence

It might have seemed like one of the weirder headlines of 2024: Microsoft is paying $1.6 billion to restart Three Mile Island. That’s the nuclear power plant in Pennsylvania whose reactor #2 had a partial meltdown in 1979. There were no injuries, and nobody died, but it set the nuclear industry back years. Only two new plants have been started since that accident.

“This is hallowed ground in the nuclear industry,” said Joe Dominguez, the CEO of Constellation Energy, which owns about half of America’s 54 nuclear plants (including Three Mile Island). “This is a place where we learned and got better.”

Correspondent David Pogue with Joe Dominguez, CEO of Constellation Energy, at the Three Mile Island nuclear power plant in Pennsylvania, which is being reopened. 

CBS News


He says that, as a result of the 1979 accident, there have been thousands of changes in protocols and procedures regarding nuclear power. “The thing that people forget is that there was another reactor at the site,” he said. “That site, that reactor, continued to operate until 2019, when it was closed for economic reasons. Cheap natural gas, low demand, subsidization of different technologies in the business, [and] no policy supporting nuclear caused plants to start retiring.”

So, what is Microsoft’s interest?

All of the Big Tech companies have ambitious goals to fight the climate crisis. That includes Google and Microsoft, which have each pledged to reach net zero carbon emissions. They were making progress, too; each has invested billions in wind and solar energy.

And then, then artificial intelligence came along. AI data centers require huge amounts of electricity.  Big Tech realized that they wouldn’t make their emissions goals without taking power into their own hands.

Dominguez said, “Microsoft is going to enjoy the benefit of the reliable, clean energy for 20 years.”

He says reopening the existing Three Mile Island facility would be quicker and less expensive than constructing a brand-new nuclear plant. “At least 10 times cheaper than building a new plant,” he said. “And we think we could get it going in about three years, versus the last plant that was built, [which] took almost 10 years.”

But if you’re a tech company, what do you do if you don’t have a recently-retired nuclear plant handy? You develop new ones. Only weeks after Microsoft’s announcement, both Amazon and Google announced major investments in nuclear power.

Google is supplementing its already enormous green energy investments with a new kind of nuclear, called small modular reactors. “These are not the nuclear power plants of yesterday, with the very large cooling towers,” said Michael Terrell, who heads Google’s decarbonization efforts. “These are much smaller facilities. But because they’re modular, you can stack them together to make bigger power plants.

He anticipates the first advanced nuclear reactor will be online by 2030. “And we’re not going to do just one reactor, but we hope to buy from what will be a series of reactors that follow that,” Terrell said.

Nuclear power still isn’t perfect; it still produces waste that has to be safely stored. But unlike solar and wind, nuclear power is always on, which is essential to those AI data centers.

An artist’s rendering of the Hermes 2 Demonstration Plant to be built in Oak Ridge, Tennessee.

Kairos Power


So, Google is funding a company called Kairos Power to design and build this new generation of reactors. Kairos is building three small demonstration plants in Oak Ridge, Tennessee, on the very spot where uranium was processed for the first atomic bomb.

CEO Mike Laufer says that his reactors don’t use fuel rods; they use fuel pebbles, about the size of golf balls – mostly graphite, with tiny kernels of uranium. And each pebble has as much power capacity as four tons of coal.

And how much carbon dioxide emissions, compared to coal? “Zero,” Laufer said.

The Kairos reactors also run at lower power and lower pressure than traditional reactors, which means lower risk.

A mockup of a “pebble” to fuel a nuclear reactor.

CBS News


Well, this all sounds great! But what’s the catch?  

“There’s only one problem with small modular reactors: They don’t really exist,” said George Washington University professor Sharon Squassoni, who spent 15 years researching nuclear safety for the government. She thinks Big Tech companies might be in over their heads. “I think they’re going to find out pretty quickly that it takes way too long and it’s way too expensive,” she said. “I think we’re going to see just how strong their commitments are to clean energy futures.”

“So, you’re saying they may have to turn to burning stuff [for power]?” I asked.

“I’m pretty sure they will,” Squassoni replied.

“Do you think there’s a little bit of tech-bro overconfidence therein?”

“Oh, completely, completely!” she laughed.

Kairos’ Mike Laufer admitted, “Yes, it’s really hard. I will totally agree with anyone. But we’re doing it at smaller scale to start, and then building on that in the future.”

Joe Dominguez’s team is getting Three Mile Island ready for Microsoft, including renaming the plant the Crane Clean Energy Center. And if AI is igniting a renaissance in American nuclear, he says: full steam ahead.

Correspondent David Pogue with Joe Dominguez, CEO of Constellation Energy, in the control room at the Three Mile Island nuclear reactor. 

CBS News


I asked, “Why do all new plants take so much longer and cost so much more than projected?”

“Honest answer? We don’t build enough of them,” Dominguez said. “You don’t want to build a unique design; you want to do kind of a cookie-cutter, one-after-another design.”

“Is it well understood in government and the industry that if you start doing the same design over and over, we can get there faster and cheaper?”

“It’s probably the best understood idea,” Dominguez said. “It’s understood by both Republicans and Democrats, which is a hard thing to say about anything! Everybody understands that if you build a common design, you build a bunch of them.”

“So, you think we’ll get there?”

“I do.”

Google’s Michael Terrell agrees, and believes his company will make its zero-carbon goal by 2030. “It is an incredibly ambitious goal: 24/7 carbon-free energy everywhere we operate every way around the world,” he said. “But it’s something we’re working very hard to achieve, and we hope to get there.”

      
For more info:

       
Story produced by Mark Hudspeth. Editor: Remington Korper.

      
See also:

Trump tariffs will impact Apple’s non-China supply chains

Apple CEO Tim Cook, center, watches during the inauguration ceremonies for President Donald Trump, right, and Vice President JD Vance, left, in the rotunda of the U.S. Capitol in Washington, Jan. 20, 2025.

Shawn Thew | Afp | Getty Images

In the past few years, Apple has sold Americans iPhones made in India, AirPods from Vietnam and Mac desktops assembled in Malaysia. It was part of a strategy by Apple to diversify its manufacturing from China. 

Apple employed the strategy as a hedge for its supply chain after the company dealt with tariffs by the first Trump administration, supply chain issues tied to Covid and chip shortages that revealed the risk the company was at by primarily producing out of China. 

It seemed like a solid strategy. Until President Donald Trump’s “reciprocal tariffs” this week hit those countries, too.

Now, Apple is leading the decline among technology stocks on Thursday after the company’s secondary production locations were all included in the round of tariffs announced by Trump on Wednesday. 

The company’s shares fell over 9% on Thursday versus a 6% decline for the Nasdaq. That wiped out over $300 billion in market cap for the iPhone maker and was the worst one-day performance for the stock since March 2020.

“When you look at the reciprocal tariff to countries like markets like Vietnam, India, and Thailand, where Apple diversified its supply chain to, there’s nowhere to escape,” Morgan Stanley analyst Erik Woodring told CNBC’s “Closing Bell.”

To offset the price of the tariffs, Apple may have to raise prices across its product lines by 17% to 18% in the U.S., Woodring estimates. But there’s still a lot of uncertainty about what Apple will do and how China might retaliate against the United States, Woodring said.

“In this type of environment, you have to think worst-case scenario,” he said. “It seems like each side in this geopolitical scenario is kind of digging in.”

Apple didn’t respond to a request for comment on Thursday on its reaction to the Trump tariffs or if it might raise prices in the U.S. It also hasn’t commented on CEO Tim Cook’s reported meetings with Trump this year or what they’ve discussed. 

“We are monitoring the situation and don’t have anything more to add than that,” Cook told analysts on an earnings call in January.

Apple could still get product exemptions on U.S. tariffs, similar to how it navigated tariffs on China during the first Trump administration. But if it doesn’t, tariffs will threaten its business.

An employee works at the factory of Rising Stars Mobile India Pvt., a unit of Foxconn Technology Co., in Sri City, India on July 11, 2019. Foxconn, also known as Hon Hai Precision Industry Co., opened its first India factory four years ago.

Karen Dias | Bloomberg | Getty Images

“Substantially all” of Apple’s manufacturing is done in China, India, Japan, South Korea, Taiwan and Vietnam, according to a financial filing in November. Apple warned investors that tariffs could hurt its business, prompt it to increase its prices and even force it to stop offering certain products altogether.

Apple’s official list of suppliers – representing 98% of its spending on materials, manufacturing, and assembly – is heavily weighted to countries disproportionately affected by Trump tariffs.

India has a 26% tariff, Japan got a 24% duty, South Korea is at 25%, Taiwan is 32%, Vietnam got 46% tariffs placed and Malaysia received a 24% tariff. China, meanwhile, is now at a 54% tariff rate after Wednesday’s 34% bump to its existing 20% tariffs. 

“The impact can be particularly significant if these restrictive measures apply to countries and regions where the Company derives a significant portion of its revenues and/or has significant supply chain operations,” Apple wrote in the filing.

The tariffs are intended to bring manufacturing back to the U.S., Trump has said. He specifically cited Apple during his announcement, saying “they’re going to build their plants here.” Apple has manufactured a high-end desktop computer called Mac Pro in Texas, but the vast majority of its final assembly takes place overseas.

Apple’s $500 billion U.S. investment, touted by Trump on Wednesday, includes planned purchases of parts and chips from U.S. suppliers, but the company hasn’t committed to manufacturing its high-volume products on American shores.

The company’s resistance to doing final manufacturing in the U.S. is a long-running stance for the company. In 2011, late Apple founder Steve Jobs told former president Barack Obama that “those jobs aren’t coming back” when asked about made-in-USA iPhones.

Analysts agree that’s unlikely as it would be expensive for Apple to bring its supply chain to the U.S.

“The reality is it would take 3 years and $30 billion dollars in our estimation to move even 10% of its supply chain from Asia to the US with major disruption in the process,” Wedbush analyst Dan Ives wrote in a Thursday note.

Apple investors will want to know how much Trump’s tariffs will hurt the company’s earnings. 

Earlier this year, several analysts forecast relatively small declines in the company’s earnings-per-share under a new trade regime, partially based on the assumption that Apple could use its secondary production locations to avoid tariffs on U.S. goods imported from China. 

Now, analysts are trying to model how Apple could balance price increases to its products versus eating the extra costs itself. Apple doesn’t often raise prices outside of a new product introduction, and it’s expected to release new phones in September.

“No doubt that if the tariffs stick, it will have a negative impact on Apple’s fundamentals, with downside to margin and earnings expectations,” CFRA Research analyst Angelo Zino wrote in a Thursday note.

WATCH: Which Megacaps are best positioned to weather Trump tariffs

Trump’s Tariffs Don’t Apply to Chips, but Taiwan Remains Wary

Taiwan, the center of the global supply chain for computer chips, woke up on Thursday to the news that President Trump had put new 32 percent tariffs on the island’s exports to the United States. Except for semiconductors.

The decision not to impose tariffs on the chip sector does not mean they won’t be coming for Taiwan or anywhere else, including South Korea, another major source of chips.

Taiwanese companies have spent decades and billions of dollars building up a network of factories that conduct the complex process of etching tiny circuits onto pieces of silicon.

These chips — and a broad range of electronic devices that contain them — are Taiwan’s main exports. And they are increasingly the focal point of the Taiwanese-U.S. geopolitical relationship, which has undergone a markedly transactional shift since Mr. Trump took office.

Mr. Trump previously said Taiwan had gained an unfair dominance in making semiconductors and threatened to impose tariffs on the sector. He has also accused Taiwan, which depends on the United States for political support against China’s claims that Taiwan is part of its territory, of spending too little on its own security.

Officials and businesses in Taiwan have been scrambling to soften the blow of Washington’s tariff threats. Last month, President Lai Ching-te said Taiwan was interested in buying natural gas from a long-stalled project in Alaska.

Weeks earlier, Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, said it would spend $100 billion in the United States to expand its operations in Arizona. TSMC announced plans for the plant during Mr. Trump’s first term and got a big financial assist under former President Joseph R. Biden Jr.

On Wednesday, in announcing the tariffs on Taiwan, Mr. Trump praised TSMC for investing in the United States. He and his aides are hoping other chip companies that committed to invest in U.S. operations during the Biden administration, like the South Korean giants Samsung and SK Hynix and Global Wafers of Taiwan, will pledge to spend even more.

Semiconductors are a complicated target for tariffs because the supply chain for making them is both global and extremely specialized. While most advanced chips are manufactured in Taiwan, many are then sent to another country, like Malaysia, for testing. Next, the chips might be put into iPhones or artificial intelligence servers in Mexico or China before those devices are sold to people all over the world.

“Very few semiconductors are actually directly imported into the United States; most are incorporated into a final product,” said Jimmy Goodrich, a senior adviser for technology analysis at the RAND Corporation.

Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics, added: “It’s much more tricky than saying, ‘We are going to slap a tariff on steel.’”

Even the chips that TSMC makes at its Arizona factory have to leave the United States to be packaged into other devices before they make it into the hands of American consumers, said Ming-Yen Ho, a nonresident fellow at the Research Institute for Democracy, Society and Emerging Technology, a government-funded think tank in Taipei.

“Any chip that’s made in Arizona right now will have to leave the U.S. for some time before going back,” Mr. Ho said. “It’s just a fact of the global chip supply chain right now.”

Mr. Trump on Wednesday announced a 32 percent tariff on Taiwanese goods exported to the United States, where Taiwan directly sends nearly a quarter of its exports. Besides chips, which will not be taxed, Taiwan mainly exports electronic devices and components for them. The American Chamber of Commerce in Taiwan said Taiwan played an indispensable role in the U.S. economy and urged officials in Washington and Taipei to strengthen ties.

The Taiwanese government on Thursday condemned the tariffs as unreasonable and unfair to Taiwan. The government would lodge a strong protest with the Office of the United States Trade Representative, Lee Hui-chih, a spokeswoman for Taiwan’s cabinet, said in a statement.

Taiwan’s exports to the United States have increased in recent years, reflecting increased demand for Taiwanese electronics and advanced technology including semiconductors, the statement said. Mr. Lai, the president, said the Taiwanese government was concerned about the global impact of the tariffs.

The Taiwanese government “thought too optimistically about the relationship with Trump,” said Jason Hsu, a senior fellow at Hudson Institute and former member of Taiwan’s legislature for the opposition Nationalist Party. “It was a little bit too naïve thinking Trump would be nice to them, especially after the TSMC announcement.”

Chris Buckley contributed reporting from Taipei, Taiwan.