This week Alphabet CEO Sundar Picahi assured investors that their long-term AI focus and investment (and a "commitment to innovation") "are paying off," reports the Associated Press. Alphabet's stock has already soared 20% this year, and it's "still thriving" as the company "navigates through a pivotal shift to AI and battles regulators..." Alphabet earned $26.3 billion, or $2.12 per share during the most recent quarter, a 34% increase from a year ago. Revenue rose 15% from the same time last year to $88.27 billion... The profits would have been even higher if Google wasn't pouring so much money into building up its AI arsenal in a technological arms race that includes other industry heavyweights Microsoft, Amazon, Apple, Facebook parent Meta Platforms and rising star OpenAI. The AI investments are the primary reason Google's capital expenditures in the past quarter soared 62% from the same time last year to $13.1 billion. The AI spending will likely stay at roughly the same level during the current October-December period, and the rise even higher next year, according to Anat Ashkenazi, Alphabet's chief financial officer.

But Ashkenazi also emphasized the Mountain View, California, company will act on cost-cutting opportunities in other areas to help boost profits. Alphabet already has trimmed its payroll from more than 190,000 worldwide employees early last year to about 181,000 workers now. In an example of how AI can perform tasks that once required human brainpower, Pichai said the technology is now writing more than 25% of the company's new computer coding.
After the results, investors sent Alphabet's stock price up 5% in extended trading, the article points out. "Both Alphabet's profit and revenue increased at a brisker pace than industry analysts anticipated, thanks primarily to a moneymaking machine powered by Google's ubiquitous search engine... [Google's digital search-engine ads earned $49.39 billion, 12% more than the same quarter of 2023.] And Google's cloud division is growing at an even more robust rate, thanks to demand for AI services. The cloud division generated $11.35 billion in revenue during the past quarter, a 35% increase from last year."

And meanwhile over at Microsoft, quarterly sales surged 16% to $65.6 billion, reports the Associated Press. But again, "the company sought to assure investors its huge spending on artificial intelligence is paying off." The company has spent billions of dollars to expand its global network of data centers and other physical infrastructure required to develop AI technology... As a result, AI-related products are now on track to contribute about $10 billion to the company's annual revenue, the "fastest business in our history to reach this milestone," CEO Satya Nadella said on a call with analysts Wednesday. [Though Microsoft "hasn't yet formally reported revenue specifically from AI products," the article notes later, with Microsoft instead saying it's infused AI and Copilot into all its business segments.]
Just in the last quarter, Microsoft spent $20 billion "mostly for its cloud computing and AI needs," the article points out.

But there's still making plenty of money... The software maker also reported an 11% increase in quarterly profit to $24.7 billion, or $3.30 per share, which beat Wall Street expectations for the July-September period... Leading in sales for the quarter was Microsoft's productivity business segment, which includes its Office suite of email and other workplace products, growing 12% to $28.3 billion. Microsoft's cloud-focused business segment grew 20% from the same time last year to $24.1 billion for the three months ending Sept. 30. Its personal computing business, led by its Windows division, grew 17% to $13.2 billion. A big part of that growth came from Microsoft's Xbox video game business, which was boosted by its purchase of game publishing giant Activision Blizzard a year ago.

Automotive Grade Linux is a collaborative open source project developing "an open platform from the ground up that can serve as the de facto industry standard" for fast development of new features. Automakers have joined with tech companies and suppliers to speed up development (and adoption) of "a fully open software stack for the connected car" — hosted at the Linux Foundation, and "with Linux at its core..."

And this week they created a new Open Source Program Office expert group, led by Toyota, to promote the establishment of Open Source Program Offices within the automotive industry, "and encourage the sharing of information and best practices between them." Open source software has become more prevalent across the automotive industry as automakers invest more time and resources into software development. Automakers like Toyota and Subaru are using open source software for infotainment and instrument cluster applications. Other open source applications across the automotive industry include R&D, testing, vehicle-to-cloud and fleet management. "Historically, there has been little code contributed back to the open source community," said Dan Cauchy, Executive Director of Automotive Grade Linux. "Often, this was because the internal procedures or IT infrastructure weren't in place to support open source contributions. The rise of software-defined vehicles has led to a growing trend of automakers not just using, but also contributing, to open source software. Many organizations are also establishing Open Source Program Offices to streamline and organize open source activities to better support business goals."

Automakers including Toyota, Honda, and Volvo have already established Open Source Program Offices. The new AGL OSPO Expert Group provides a neutral space for them to share pain points and collaborate on solutions, exchange information, and develop best practices that can help other automakers build their own OSPOs. "Toyota has been participating in AGL and the broader open source community for over a decade," said Masato Endo, Group Manager of Open Source Program Group, Toyota. "We established an OSPO earlier this year to promote the use of open source software internally and to help guide how and where we contribute. We are looking forward to working with other open source leaders to solve common problems, collaborate on best practices, and invigorate open source activities in the automotive industry."

The AGL OSPO EG is led by Toyota with support from Panasonic and AISIN Corporation.

An anonymous reader shares a report: The cloud migration narrative that powered tech valuations during the pandemic is attempting a comeback, but the underlying data suggests a more complex story.

UBS's new survey of IT services reveals a striking disconnect between industry expectations and customer reality. While executives proclaim "2025 will be far better than what we've seen in 2024," their enterprise clients report having migrated merely 15% of workloads to the cloud, with the remainder presenting increasingly complex challenges.

The numbers are particularly telling: Growth rates for major cloud providers AWS, Azure, and Google Cloud have declined from pandemic peaks of 40-50% to 10-20%. IT budgets for 2024, meanwhile, are projected to be "flattish to up very slightly, maybe a couple percent," marking a significant departure from the explosive growth of recent years.

ZDNet's Steven Vaughan-Nichols reports: [...] At KubeCon North America 2024 this week, CNCF executive director Priyanka Sharma said in her keynote, "Patent trolls are not contributors or even adopters in our ecosystem. Instead, they prey on cloud-native adopters by abusing the legal system. We are here to tell the world that these patent trolls don't stand a chance because CNCF is uniting the ecosystem to deter them. Like a herd of musk oxen, we will run them off our pasture." CNCF CTO Chris Aniszczyk added: "The reason trolls can make money is that many companies find it too expensive to fight back, so they pay trolls a settlement fee to avoid the even higher cost of litigation. Now, when a whole herd of companies band together like musk oxen to drive a troll off, it changes the cost structure of fighting back. It disrupts their economic model."

How? Jim Zemlin, the Linux Foundation's executive director, said, "We don't negotiate with trolls. Instead, with United Patents, we go to the PTO and crush those patents. We strive to invalidate them by working with developers who have prior art, bringing this to the attention of the USPTO, and killing patents. No negotiation, no settlement. We destroy the very asset that made patent trolls' business work. Together, since we've started this effort, 90% of the time, we've been able to go in there and destroy these patents." "It's time for us to band together," said Joanna Lee, CNCF's VP of strategic programs and legal. "We encourage all organizations in our ecosystem to get involved. Join the fight, enhance your own company's protection, protect your customers, enhance our community defense, and save money on legal expenses."

While getting your company and its legal department involved in the effort to fend off patent trolls is important, developers can also help. CNCF announced the Cloud Native Heroes Challenge, a patent troll bounty program in which cloud-native developers and technologists can earn swag and win prizes. They're asking you to find evidence of preexisting technology -- referred to by patent lawyers as "prior art" -- that can kill off bad patents. This could be open-source documentation (including release notes), published standards or specifications, product manuals, articles, blogs, books, or any publicly available information. All entrants who submit an entry that conforms to the contest rules will receive a free "Cloud Native Hero" t-shirt that can be picked up at any future KubeCon+CloudNativeCon. The winner will also receive a $3,000 cash prize.

In the inaugural contest, the CNCF is seeking information that can be used to invalidate Claim 1 from US Patent US-11695823-B1. This is the major patent asserted by Edge Networking Systems against Kubernetes users. As is often the case with such patents, it's much too broad. This patent describes a network architecture that facilitates secure and flexible programmability between a user device and across a network with full lifecycle management of services and infrastructure applications. That describes pretty much any modern cloud system. If you can find prior art that describes such a system before June 13, 2013, you could be a winner. Some such materials have already been found. This is already listed in the "known references" tab of the contest information page and doesn't qualify. If you care about keeping open-source software easy and cheap to use -- or you believe trolls shouldn't be allowed to take advantage of companies that make or use programs -- you can help. I'll be doing some digging myself.

The Federal Trade Commission is preparing to launch an investigation into anti-competitive practices at Microsoft's cloud computing business, Financial Times reported Thursday, as the US regulator continues to pursue Big Tech in the final weeks of Joe Biden's presidency. From the report: The FTC is examining allegations that Microsoft is abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data from its Azure cloud service to competitors' platforms, according to people with direct knowledge of the matter.

Tactics being examined include substantially increasing subscription fees for those that leave, charging steep exit fees and allegedly making its Office 365 products incompatible with rival clouds, they added.

Scientists have developed a method to reuse components from decommissioned data center servers, potentially reducing the carbon footprint of cloud computing infrastructure.

The research team from Microsoft, Carnegie Mellon University and the University of Washington demonstrated that older RAM modules and solid-state drives can be safely repurposed in new server builds without compromising performance, according to papers presented at recent computer architecture conferences.

When combined with energy-efficient processors, the prototype servers achieved an 8% reduction in total carbon emissions during Azure cloud service testing. Researchers estimate the approach could cut global carbon emissions by up to 0.2% if widely adopted. The cloud computing industry currently accounts for 3% of global energy consumption and could represent 20% of emissions by 2030, according to computing experts. Most data centers, including Microsoft's Azure, typically replace servers every 3-5 years.

An anonymous reader quotes a report from TechCrunch: U.K. consumer rights group 'Which?' is filing a legal claim against Apple under competition law on behalf of some 40 million users of iCloud, its cloud storage service. The collective proceeding lawsuit, which is seeking 3 billion pounds in compensation damages (around $3.8 billion at current exchange rates), alleges that Apple has broken competition rules by giving its own cloud storage service preferential treatment and effectively locking people into paying for iCloud at "rip-off" prices. "iOS has a monopoly and is in control of Apple's operating systems and it is incumbent on Apple not to use that dominance to gain an unfair advantage in related markets, like the cloud storage market. But that is exactly what has happened," Which wrote in a press release announcing filing the claim with the U.K.'s Competition Appeal Tribunal (CAT).

The lawsuit accuses Apple of encouraging users of its devices to sign up to iCloud for photo storage and other data storage needs, while simultaneously making it difficult for consumers to use alternative storage providers -- including by not allowing them to store or back-up all of their phone's data with a third-party provider. "iOS users then have to pay for the service once photos, notes, messages and other data go over the free 5GB limit," Which noted. The suit also accuses Apple of overcharging U.K. consumers for iCloud subscriptions owing to the lack of competition. "Apple raised the price of iCloud for UK consumers by between 20% and 29% across its storage tiers in 2023," it wrote, saying it's seeking damages for all affected Apple customers -- and estimating that individual consumers could be owed an average of 70 pounds (around $90), depending on how long they've been paying Apple for iCloud services. "Anyone who has 'obtained' iCloud services, including non-paying users, over the nine-year timeframe since the Consumer Rights Act came into force on October 1st, 2015," will be included in the claim. U.K.-based consumers will have to opt-out if they do not want to be included. "Consumers who live outside the U.K. and believe they are eligible to be included must actively opt-in to join the action," adds TechCrunch.

An anonymous reader quotes a report from BleepingComputer: VMware has announced that its VMware Fusion and VMware Workstation desktop hypervisors are now free to everyone for commercial, educational, and personal use. In May, the company also made VMware Workstation Pro and Fusion Pro free for personal use, allowing students and home users to set up virtualized test labs and experiment with other OSs by running virtual machines and Kubernetes clusters on Windows, Linux, and macOS devices. Starting this week, the Pro versions and the two products will no longer be available under a paid subscription model.

"Effective immediately, both VMware Fusion and VMware Workstation will transition away from the paid subscription model, meaning you can now utilize these tools without any cost. The paid versions of these offerings -- Workstation Pro and Fusion Pro -- are no longer available for purchase," said Broadcom product marketing director Himanshu Singh. "If you're currently under a commercial contract, you can rest easy knowing that your agreement will remain in effect until the end of your term. You will continue to receive the full level of service and enterprise-grade support as per your contract."

While the free versions will include all the features available in the paid products, Broadcom will no longer provide users with support ticketing for troubleshooting. Broadcom plans to continue developing new features and improvements and ensure that updates are rolled out promptly. "We're actively investing in new features, usability improvements, and other valuable enhancements," Singh added. "Our engineering teams are committed to maintaining our high standards for stability, with timely updates and reliable performance." You can download VMware Fusion and VMware Workstation here (sign-in required).

Renew Home says they're building a "virtual power plant" in Texas by "enabling homes to easily reduce and shift the timing of energy use." Thursday they announced a 10-year project distributing hundreds of thousands of smart thermostats to customers of Texas-based power utility NRG Energy, starting next spring. (Bloomberg calls them "AI-enabled thermostats that use Alphabet Inc.'s Google Cloud technology.") The ultimate goal? "Create a nearly 1-gigawatt, AI-powered virtual power plant" — equivalent to 1.9 million solar panels, enough to power about 200,000 homes during peak demand.

One NRG executive touted the move as "cutting-edge, AI-driven solutions that will bolster grid resilience and contribute to a more sustainable future." [Residential virtual power plants] work by aggregating numerous, small-scale distributed energy resources like HVAC systems controlled by smart thermostats and home batteries and coordinating them to balance supply and demand... NRG, in partnership with Renew Home, plans to offer Vivint and Nest smart thermostats, including professional installation, at no cost to eligible customers across NRG's retail electricity providers and plans. These advanced thermostats make subtle automatic HVAC adjustments to help customers shift their energy use to times when electricity is less constrained, less expensive, and cleaner... Over time, the parties expect to add devices like batteries and electric vehicles to the virtual power plant, expanding energy savings opportunities for customers...

Through the use of Google Cloud's data, analytics, and AI technology, NRG will be able to do things like better predict weather conditions, forecast wind and solar generation output, and create predictive pricing models, allowing for more efficient production and ultimately ensuring the home energy experience is seamless for customers.
Google Cloud will also offer "its AI and machine learning to determine the best time to cool or heat homes," reports Bloomberg, "based on a household's energy usage patterns and ambient temperatures."

It was less than a year ago that Renew Home was formed when Google spun off the load-shifting service for its "Google Nest" thermostats, which merged with load-shift management startup OhmConnect. Bloomberg describes this week's announcement as "Three of the biggest names in US home energy automation... coming together to offer some relief to the beleaguered Texas electrical grid."

But they point out that 1 gigawatt is roughly 1% of the record summer demand seen in Texas this year. Still, "The entire industry has been built to serve the peak load on the hottest day of the year," said Rasesh Patel, president of NRG's consumer unit. "This allows us to be a lot more smarter about demand in shaving the peak."

An anonymous reader quotes a report from Ars Technica: Anthropic has announced a partnership with Palantir and Amazon Web Services to bring its Claude AI models to unspecified US intelligence and defense agencies. Claude, a family of AI language models similar to those that power ChatGPT, will work within Palantir's platform using AWS hosting to process and analyze data. But some critics have called out the deal as contradictory to Anthropic's widely-publicized "AI safety" aims. On X, former Google co-head of AI ethics Timnit Gebru wrote of Anthropic's new deal with Palantir, "Look at how they care so much about 'existential risks to humanity.'"

The partnership makes Claude available within Palantir's Impact Level 6 environment (IL6), a defense-accredited system that handles data critical to national security up to the "secret" classification level. This move follows a broader trend of AI companies seeking defense contracts, with Meta offering its Llama models to defense partners and OpenAI pursuing closer ties with the Defense Department. In a press release, the companies outlined three main tasks for Claude in defense and intelligence settings: performing operations on large volumes of complex data at high speeds, identifying patterns and trends within that data, and streamlining document review and preparation.

While the partnership announcement suggests broad potential for AI-powered intelligence analysis, it states that human officials will retain their decision-making authority in these operations. As a reference point for the technology's capabilities, Palantir reported that one (unnamed) American insurance company used 78 AI agents powered by their platform and Claude to reduce an underwriting process from two weeks to three hours. The new collaboration builds on Anthropic's earlier integration of Claude into AWS GovCloud, a service built for government cloud computing. Anthropic, which recently began operations in Europe, has been seeking funding at a valuation up to $40 billion. The company has raised $7.6 billion, with Amazon as its primary investor.

UK government-appointed commissioners have labeled Birmingham City Council's Oracle Fusion rollout as "the poorest ERP deployment" they have seen. From a report: A report published by the UK council's Corporate Finance Overview and Scrutiny Committee found that 18 months after Fusion went live, the largest public authority in Europe "had not tactically stabilized the system or formulated clear plans to resolve the system issues and recover the operation."

The city council's cloud-based Oracle tech replaced the SAP system that it began using in 1999, but the disastrous project encountered a string of landmark failures. The council has failed to produce auditable accounts since Oracle was implemented in 2022, costs have ballooned from around 19 million pound to a projected estimate of 131 million pound and, because the council chose not to use system audit features, it cannot tell if fraud has taken place on its multibillion-pound spending budget for an 18-month period. In September last year, the council became effectively bankrupt due to outstanding equal pay claims and the Oracle implementation.

The report from "best value commissioners" appointed by central government to investigate struggling councils said that following the Oracle implementation, "a serious lack of trust had developed between members and officers driven by the failed implementation and subsequent lack of progress to resolve the situation."

Microsoft is introducing a feature to Notepad called Rewrite that will let you use AI to "rephrase sentences, adjust tone, and modify the length of your content." The Verge reports: If you're a Windows Insider with early access to the feature, you can try it by highlighting the text you want to adjust in Notepad, right-clicking it, and choosing Rewrite. Notepad will then display a dialogue box where you can decide how they want to change their text -- for example, if it needs to be longer or shorter. Rewrite will then offer three rewritten versions that you can replace your work with.

It's worth noting that you'll have to sign in to your Microsoft account to use Rewrite, as it's "powered by a cloud-based service that requires authentication and authorization." Microsoft is launching this feature in preview on Windows 11 in the US, France, UK, Canada, Italy, and Germany. In July, Microsoft rolled out spellcheck and autocorrect for Notepad.

Nvidia will impose a 100-hour monthly limit on its GeForce Now cloud gaming service for new subscribers starting January 2025, with existing members facing the same restriction from 2026, the company said on Thursday.

The gaming giant aims to maintain current subscription prices by implementing the cap, which affects roughly 6% of users. Members can purchase additional 15-hour blocks for $2.99 on Performance tier or $5.99 for Ultimate tier once they exceed the limit.

The service, which allows users to stream games from remote servers, will also rebrand its Priority membership to Performance tier, adding 1440p streaming and ultrawide resolution support. Subscribers can carry over 15 unused hours monthly or switch to basic servers after reaching the cap, Nvidia said.

An anonymous reader quotes a report from Fortune: Google CEO Sundar Pichai has weighed in on the debate over the relative values of political expression and workplace coexistence by ordering employees to leave their political opinions at home. A day after firing 28 workers for participating in a sit-in protest of the tech giant's cloud contract with Israel, Pichai warned staff that the office is not a place "to fight over disruptive issues or debate politics" in a company blog post.

Although Pichai didn't specifically mention the protests or the Israel-Hamas war, he concluded that the $1.92 trillion company "is a business, and not a place to act in a way that disrupts coworkers or makes them feel unsafe, to attempt to use the company as a personal platform." "We have a duty to be an objective and trusted provider of information that serves all of our users globally," Pichai continued. "When we come to work, our goal is to organize the world's information and make it universally accessible and useful. That supersedes everything else and I expect us to act with a focus that reflects that." The sit-in protest was staged against Google's involvement in Project Nimbus, a $1.2 billion cloud contract with the Israeli government. During the nearly 10-hour protest, employees wore "Googler against genocide" T-shirts and occupied the office of Google Cloud CEO Thomas Kurian.

The report notes how tech companies, "previously famed for their progressive culture where nap pods and abortion benefits were welcome," are increasingly restricting political discussions to avoid internal conflict. Pichai notes in his memo that Google has previously enjoyed "a culture of vibrant, open discussion that enables us to create amazing products and turn great ideas into action."

India's capital territory of Delhi is keen to use artificial rain to fight air pollution this year, its Environment Minister Gopal Rai said on Tuesday, as deteriorating air quality in the region led to an increase in respiratory illnesses. From a report: Large swathes of north India battle pollution each winter as cold air traps dust, vehicle emissions and smoke from farm fires in the breadbasket states of Punjab and Haryana, shrouding the national capital and its suburbs in a toxic haze. Cloud-seeding - the method of triggering rain by seeding clouds with salts - was considered to curb pollution in 2023 too but the plan did not materialise due to unfavourable weather conditions.

"I appeal to the federal environment minister...now in Delhi and north India, the pollution has reached the border of 400," Rai told reporters, referring to the air quality index (AQI) score on Tuesday. "The next 10 days are quite crucial...help us get permission for artificial rain, call a meeting," he said. About a third of Delhi's 39 monitoring stations showed a severe AQI score of more than 400 on Tuesday, a level which affects healthy people but is more serious for those fighting disease. An air quality score of zero to 50 is considered good.

Ars Technica's Samuel Axon reports on Microsoft's quarterly earnings: Some investors have been uneasy about the company's aggressive spending on AI, while others have demanded it. During this quarter, Microsoft reported that it spent $20 billion on capital expenditures, nearly double what it had spent during the same quarter last year. However, the company satisfied both groups of investors, as it revealed it has still been doing well in the short term amid those long-term investments. The fiscal quarter, which covered July through September, saw overall sales rise 16 percent year over year to $65.6 billion. Despite all that AI spending, profits were up 11 percent, too. The growth was largely driven by Azure and cloud services, which saw a 33 percent increase in revenue. The company attributed 12 percent of that to AI-related products and services.

Meanwhile, Microsoft's gaming division continued to challenge long-standing assumptions that hardware is king, with Xbox content and services posting 61 percent increased year-over-year revenue despite a 29 percent drop in hardware sales. [...] The company attributed 53 points of that to the recent $69 billion Activision acquisition.

An anonymous reader quotes a report from The Intercept: Less than a year after OpenAI quietly signaled it wanted to do business with the Pentagon, a procurement document obtained by The Intercept shows U.S. Africa Command, or AFRICOM, believes access to OpenAI's technology is "essential" for its mission. The September 30 document lays out AFRICOM's rationale for buying cloud computing services directly from Microsoft as part of its $9 billion Joint Warfighting Cloud Capability contract, rather than seeking another provider on the open market. "The USAFRICOM operates in a dynamic and evolving environment where IT plays a critical role in achieving mission objectives," the document reads, including "its vital mission in support of our African Mission Partners [and] USAFRICOM joint exercises."

The document, labeled Controlled Unclassified Information, is marked as FEDCON, indicating it is not meant to be distributed beyond government or contractors. It shows AFRICOM's request was approved by the Defense Information Systems Agency. While the price of the purchase is redacted, the approval document notes its value is less than $15 million. Like the rest of the Department of Defense, AFRICOM -- which oversees the Pentagon's operations across Africa, including local military cooperation with U.S. allies there -- has an increasing appetite for cloud computing. The Defense Department already purchases cloud computing access from Microsoft via the Joint Warfighting Cloud Capability project. This new document reflects AFRICOM's desire to bypass contracting red tape and buy immediatelyMicrosoft Azure cloud services, including OpenAI software, without considering other vendors. AFRICOM states that the "ability to support advanced AI/ML workloads is crucial. This includes services for search, natural language processing, [machine learning], and unified analytics for data processing." And according to AFRICOM, Microsoft's Azure cloud platform, which includes a suite of tools provided by OpenAI, is the only cloud provider capable of meeting its needs.

Microsoft began selling OpenAI's GPT-4 large language model to defense customers in June 2023. Earlier this year, following the revelation that OpenAI had changed its mind on military work, the company announced a cybersecurity collaboration with DARPA in January and said its tools would be used for an unspecified veteran suicide prevention initiative. In April, Microsoft pitched the Pentagon on using DALL-E, OpenAI's image generation tool, for command and control software. But the AFRICOM document marks the first confirmed purchase of OpenAI's products by a U.S. combatant command whose mission is one of killing. OpenAI's stated corporate mission remains "to ensure that artificial general intelligence benefits all of humanity." The AFRICOM document marks the first confirmed purchase of OpenAI's products by a U.S. combatant command whose mission is one of killing. "Without access to Microsoft's integrated suite of AI tools and services, USAFRICOM would face significant challenges in analyzing and extracting actionable insights from vast amounts of data," reads the AFRICOM document. "This could lead to delays in decision-making, compromised situational awareness, and decreased agility in responding to dynamic and evolving threats across the African continent." The document contains little information about how exactly the OpenAI tools will be used.

Dropbox is letting go 20% of its workforce as the cloud company undergoes what CEO Drew Houston calls a "transitional period." From a report: In a letter to staff, Houston said that the reduction in headcount would impact 528 people. The goal, he added, was to make cuts in areas where Dropbox has "over-invested" while designing a "flatter, more efficient" team structure.

"As CEO, I take full responsibility for this decision and the circumstances that led to it, and I'm truly sorry to those impacted by this change," he wrote. "This market is moving fast and investors are pouring hundreds of millions of dollars into this space. This both validates the opportunity we've been pursuing and underscores the need for even more urgency, even more aggressive investment, and decisive action." According to a filing with the SEC, Dropbox estimates it'll lay out total cash expenditures of $63 million to $68 million on the layoffs, primarily in the form of severance and benefits, and recognize $47 million to $52 million of incremental expense.

Google has integrated AI deeply across its operations, with over 25% of its new code generated by AI. CEO Sundar Pichai announced the milestone during the company's third quarter 2024 earnings call. The Verge reports: AI is helping Google make money as well. Alphabet reported $88.3 billion in revenue for the quarter, with Google Services (which includes Search) revenue of $76.5 billion, up 13 percent year-over-year, and Google Cloud (which includes its AI infrastructure products for other companies) revenue of $11.4 billion, up 35 percent year-over-year. Operating incomes were also strong. Google Services hit $30.9 billion, up from $23.9 billion last year, and Google Cloud hit $1.95 billion, significantly up from last year's $270 million. "In Search, our new AI features are expanding what people can search for and how they search for it," CEO Sundar Pichai says in a statement. "In Cloud, our AI solutions are helping drive deeper product adoption with existing customers, attract new customers and win larger deals. And YouTube's total ads and subscription revenues surpassed $50 billion over the past four quarters for the first time."

Microsoft took the unusual step on Monday of publicly criticizing longtime rival Google for running "shadow campaigns" in Europe designed to discredit the software giant with regulators. CNBC: Microsoft lawyer Rima Alaily wrote in a blog post that Google hired a firm to recruit European cloud companies to represent the search company's case. "This week an astroturf group organized by Google is launching," Microsoft lawyer Rima Alaily wrote in a blog post. "It is designed to discredit Microsoft with competition authorities, and policymakers and mislead the public. Google has gone through great lengths to obfuscate its involvement, funding, and control, most notably by recruiting a handful of European cloud providers, to serve as the public face of the new organization."

The conflict represents a fresh battle between two companies that do battle in cloud infrastructure as well as online advertising and productivity software. The latest chapter surfaces as Google faces heightened regulatory pressure in Europe and in the U.S., where it's in the midst of its second antitrust trial against the Justice Department. Alaily suggested in Monday's post that Google hired advisory firm DGA Group to set up the Open Cloud Coalition. One company that opted not to participate in the group told Microsoft that the coalition would receive financial backing from Google and criticize Microsoft's practices in Europe, Alaily wrote.