Microsoft is trying to make users use Copilot more by removing a popular and helpful dictionary feature in Microsoft Word.

Microsoft is bringing OpenAI’s o1 reasoning model to all Copilot users this week. You won’t need to subscribe to a $20 monthly Copilot Pro or ChatGPT Plus plan to get it either, as Microsoft is making it free for all users of Copilot.

Microsoft's FY25 Q2 earnings reveal a decline in Xbox hardware revenue, while content and services revenue has increased. The company posted its latest earnings report on Wednesday, January 29, 2025.

Microsoft on Wednesday forecast disappointing growth in its cloud computing business, sending its shares down 4.5% in after-hours trading as investors worry about big spending, elusive artificial intelligence revenue and competition from cheaper AI models from China.

Microsoft shares fell in Europe on Thursday after it issued a downbeat forecast for its cloud business, while Facebook parent Meta shares rose after beating expectations, as investors scrutinised the companies' spending on artificial intelligence.

The tech giant’s revenue was up 12 percent to $69.6 billion, but investors are showing their nerves after a long boom for tech stocks.

Microsoft’s cloud and AI businesses are doing pretty well — and their impact is being felt across the company. In its Q2 2025 earnings, Microsoft announced revenue of $69.6 billion for the quarter, up 12 percent year-over-year, and net income of $24.1 billion, which is up 10 percent year-over-year.

By Aditya Soni and Deborah Mary Sophia (Reuters) -Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the U.S. technology industry, the chief executives of Microsoft and Meta defended massive spending that they said was key to staying competitive in the new field.

Distilled R1 models can now run locally on Copilot Plus PCs, starting with Qualcomm Snapdragon X first and Intel chips later. This brings a lot more AI capabilities to Windows, and it’s something Microsoft was already working on with its Phi Silica language models.

Meta Platforms and most other U.S. stocks are rising Thursday following a rush of profit reports from some of the country’s most influential companies, but drops for Nvidia and Microsoft are keeping the market in check.