Early Friday "there were nearly 113 incidents of people reporting issues with Microsoft 365 as of 1:05 a.m. ET," reports Reuters. But that's down "from over 15,890 reports at its peak a day earlier, according to Downdetector." Reuters points out the outage affected antivirus software Microsoft Defender and data governance software Microsoft Purview, while CRN notes it also impacted "a number of Microsoft 365 services" including Outlook and Exchange online: During the outage, Outlook users received a "451 4.3.2 temporary server issue" error message when attempting to send or receive email. Users did not have the ability to send and receive email through Exchange Online, including notification emails from Microsoft Viva Engage, according to the vendor. Other issues that cropped up include an inability to send and receive subscription email through [analytics platform] Microsoft Fabric, collect message traces, search within SharePoint online and Microsoft OneDrive and create chats, meetings, teams, channels or add members in Microsoft Teams...

As with past cloud outages with other vendors, even after Microsoft fixed the issues, recovery efforts by its users to return to a normal state took additional time... Microsoft confirmed in a post on X [Thursday] at 4:14 p.m. ET that it "restored the affected infrastructure to a (healthy) state" but "further load balancing is required to mitigate impact...." The company reported "residual imbalances across the environment" at 7:02 p.m., "restored access to the affected services" and stable mail flow at 12:33 a.m. Jan. 23. At that time, Microsoft still saw a "small number of remaining affected services" without full service stability. The company declared impact from the event "resolved" at 1:29 p.m. Eastern. Microsoft sent out another X post at 8:20 a.m. asking users experiencing residual issues to try "clearing local DNS caches or temporarily lowering DNS TTL values may help ensure a quicker remediation...."

Microsoft said in an admin center update that [Thursday's] outage was "caused by elevated service load resulting from reduced capacity during maintenance for a subset of North America hosted infrastructure." Furthermore, Microsoft noted that during "ongoing efforts to rebalance traffic" it introduced a "targeted load balancing configuration change intended to expedite the recovery process, which incidentally introduced additional traffic imbalances associated with persistent impact for a portion of the affected infrastructure." US itek's David Stinner said it appears that Microsoft did not have enough capacity on its backup system while doing maintenance on its main system. "It looks like the backup system was overloaded, and it brought the system down while they were still doing maintenance on the main system," he said. "That is why it took so many hours to get back up and running. If your primary system is down for maintenance and your backup system fails due to capacity issues, then it is going to take a while to get your primary system back up and running."
"This was not Microsoft's first outage of 2026," the article notes, "with the vendor handling access issues with Teams, Outlook and other M365 services on Wednesday, a Copilot issue on Jan. 15 plus an Azure outage earlier in the month..."

An anonymous reader shared this report from Fortune The large language models (LLMs) that have captivated the world are not a path to human-level intelligence, two AI experts asserted in separate remarks at Davos. Demis Hassabis, the Nobel Prize-winning CEO of Google DeepMind, and the executive who leads the development of Google's Gemini models, said today's AI systems, as impressive as they are, are "nowhere near" human-level artificial general intelligence, or AGI. [Though the artilcle notes that later Hassabis predicted there was a 50% chance AGI might be achieved within the decade.] Yann LeCun — an AI pioneer who won a Turing Award, computer science's most prestigious prize, for his work on neural networks — went further, saying that the LLMs that underpin all of the leading AI models will never be able to achieve humanlike intelligence and that a completely different approach is needed... ["The reason ... LLMs have been so successful is because language is easy," LeCun said later.]

Their views differ starkly from the position asserted by top executives of Google's leading AI rivals, OpenAI and Anthropic, who assert that their AI models are about to rival human intelligence. Dario Amodei, the CEO of Anthropic, told an audience at Davos that AI models would replace the work of all software developers within a year and would reach "Nobel-level" scientific research in multiple fields within two years. He said 50% of white-collar jobs would disappear within five years. OpenAI CEO Sam Altman (who was not at Davos this year) has said we are already beginning to slip past human-level AGI toward "superintelligence," or AI that would be smarter than all humans combined...

The debate over AGI may be somewhat academic for many business leaders. The more pressing question, says Cognizant CEO Ravi Kumar, is whether companies can capture the enormous value that AI already offers. According to Cognizant research released ahead of Davos, current AI technology could unlock approximately $4.5 trillion in U.S. labor productivity — if businesses can implement it effectively.

An anonymous reader shared this report from Reuters: U.S. insurer Lemonade said on Wednesday it would offer a 50% rate cut for drivers of Tesla electric vehicles when the automaker's Full Self-Driving (FSD) driver assistance software is steering because it had data showing it reduced accidents. Lemonade's move is an endorsement of Tesla CEO Elon Musk's claims that the company's vehicle technology is safer than human drivers, despite concerns flagged by regulators and safety experts.

As part of a collaboration, Tesla is giving Lemonade access to vehicle telemetry data that will be used to distinguish between miles driven by FSD — which requires a human driver's supervision — and human driving, the New York-based insurer said. The price cut is for Lemonade's pay-per-mile insurance. "We're looking at this in extremely high resolution, where we see every minute, every second that you drive your car, your Tesla," Lemonade co-founder Shai Wininger told Reuters. "We get millions of signals emitted by that car into our systems. And based on that, we're pricing your rate."

Wininger said data provided by Tesla combined with Lemonade's own insurance data showed that the use of FSD made driving about two times safer for the average driver. He did not provide details on the data Tesla shared but said no payments were involved in the deal between Lemonade and the EV maker for the data and the new offering... Wininger said the company would reduce rates further as Tesla releases FSD software updates that improve safety. "Traditional insurers treat a Tesla like any other car, and AI like any other driver," Wininger said. "But a driver who can see 360 degrees, never gets drowsy, and reacts in milliseconds isn't like any other driver."

The U.S. Department of Justice has opened a criminal investigation into Deel over allegations that it recruited a spy inside rival Rippling, according to documents seen by The Wall Street Journal. From the report: An Ireland-based Rippling employee, Keith O'Brien, alleged in an affidavit filed in April that Deel Chief Executive Alex Bouaziz recruited him and gave him instructions for what information to take from Rippling. O'Brien alleged that other executives were involved in the spying plot, including Bouaziz's father, who is Deel's executive chairman and chief strategy officer.

A spokeswoman for Deel said the company isn't aware of a criminal investigation but is willing to cooperate with authorities. The company has previously said: "We deny all legal wrongdoing and look forward to asserting our counterclaims." Unsealed court documents allege that an entity tied to Deel transferred $6,000 to an account owned by the wife of Chief Operating Officer Dan Westgarth, and that the same amount was forwarded from the account to O'Brien seconds later.

An anonymous reader quotes a report from Wired: When TikTok users in the U.S. opened the app today, they were greeted with a pop-up asking them to agree to the social media platform's new terms of service and privacy policy before they could resume scrolling. These changes are part of TikTok's transition to new ownership. In order to continue operating in the U.S., TikTok was compelled by the U.S. government to transition from Chinese control to a new, American-majority corporate entity. Called TikTok USDS Joint Venture LLC, the new entity is made up of a group of investors that includes the software company Oracle. It's easy to tap "agree" and keep on scrolling through videos on TikTok, so users might not fully understand the extent of changes they are agreeing to with this pop-up.

Now that it's under U.S.-based ownership, TikTok potentially collects more detailed information about its users, including precise location data. Here are the three biggest changes to TikTok's privacy policy that users should know about. TikTok's change in location tracking is one of the most notable updates in this new privacy policy. Before this update, the app did not collect the precise, GPS-derived location data of U.S. users. Now, if you give TikTok permission to use your phone's location services, then the app may collect granular information about your exact whereabouts. Similar kinds of precise location data is also tracked by other social media apps, like Instagram and X.

[...] Rather than an adjustment, TikTok's policy on AI interactions adds a new topic to the privacy policy document. Now, users' interactions with any of TikTok's AI tools explicitly fall under data that the service may collect and store. This includes any prompts as well as the AI-generated outputs. The metadata attached to your interactions with AI tools may also be automatically logged. [...] This change to TikTok's privacy policy may not be as immediately noticeable to users, but it will likely have an impact on the types of ads you see outside of TikTok. So, rather than just using your collected data to target you while using the app, TikTok may now further leverage that info to serve you more relevant ads wherever you go online. As part of this advertising change, TikTok also now explicitly mentions publishers as one kind of partner the platform works with to get new data.

Vimeo is laying off employees around the world just months after Italian software company Bending Spoons completed its $1.38 billion acquisition of the video hosting platform. Dave Brown, Vimeo's former brand VP, described the cuts on LinkedIn as affecting "a large portion of the company." One video engineer claimed "almost everyone" was laid off, "including the entire video team," and another software engineer said he lost his job alongside "a gigantic amount of the company."

This marks Vimeo's second round of layoffs in less than six months. The company cut 10% of its workforce in September, just one week before Bending Spoons announced its acquisition plans. Bending Spoons has a history of post-acquisition layoffs at companies including WeTransfer, Filmic, and Evernote.

An anonymous reader quotes a report from NPR: TikTok has finalized a deal to create a new American entity, avoiding the looming threat of a ban in the United States that has been in discussion for years. The social video platform company signed agreements with major investors including Oracle, Silver Lake and MGX to form the new TikTok U.S. joint venture. The new version will operate under "defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation and software assurances for U.S. users," the company said in a statement Thursday. American TikTok users can continue using the same app. [...] Adam Presser, who previously worked as TikTok's head of operations and trust and safety, will lead the new venture as its CEO. He will work alongside a seven-member, majority-American board of directors that includes TikTok's CEO Shou Chew.

[...] In addition to an emphasis on data protection, with U.S. user data being stored locally in a system run by Oracle, the joint venture will also focus on TikTok's algorithm. The content recommendation formula, which feeds users specific videos tailored to their preferences and interests, will be retrained, tested and updated on U.S. user data, the company said in its announcement. The algorithm has been a central issue in the security debate over TikTok. China previously maintained the algorithm must remain under Chinese control by law. But the U.S. regulation passed with bipartisan support said any divestment of TikTok must mean the platform cuts ties -- specifically the algorithm -- with ByteDance. Under the terms of this deal, ByteDance would license the algorithm to the U.S. entity for retraining.

The law prohibits "any cooperation with respect to the operation of a content recommendation algorithm" between ByteDance and a new potential American ownership group, so it is unclear how ByteDance's continued involvement in this arrangement will play out. Oracle, Silver Lake and the Emirati investment firm MGX are the three managing investors, who each hold a 15% share. Other investors include the investment firm of Michael Dell, the billionaire founder of Dell Technologies. ByteDance retains 19.9% of the joint venture.

The European Parliament is calling on the European Commission to reduce dependence on U.S. tech giants by prioritizing EU-based cloud, AI, and open-source infrastructure. The report frames "European Tech First," public procurement reform, and Public Money, Public Code as necessary self-defense against growing U.S. control over critical digital infrastructure. Heise reports: In terms of content, the report focuses on a strategic reorientation of public procurement and infrastructure. The compromise line adopted stipulates that member states can favor European tech providers in strategic sectors to systematically strengthen the technological capacity of the Community. The Greens even called for a stricter regulation here, where the use of products "Made in EU" should become the rule and exceptions would have to be explicitly justified. They also pushed for a definition for cloud infrastructure that provides for full EU jurisdiction without dependencies on third countries.

With the decision, the MEPs want to lay the foundation for a European digital public infrastructure based on open standards and interoperability. The principle of Public Money, Public Code is anchored as a strategic foundation to reduce dependence on individual providers. Software specifically developed for administration with tax money should therefore be made available to everyone under free licenses. For financing, the Parliament relies on the expansion of public-private investments. A "European Sovereign Tech Fund" endowed with ten billion euros was discussed beforehand, for example, to specifically build strategic infrastructures that the market does not provide on its own. The shadow rapporteur for the Greens, Alexandra Geese, sees Europe ready to take control of its digital future with the vote. As long as European data is held by US providers subject to laws such as the Cloud Act, security in Europe is not guaranteed.

NASA Langley has initiated the U.S. government software approval process to install CapFrameX, a benchmarking tool popular among PC gaming enthusiasts, on its cockpit simulators used to train test pilots. The space agency reached out to CapFrameX, not the other way around, according to an X post from the company.

NASA builds custom flight simulators from scratch for experimental aircraft like the X-59, a supersonic jet designed to produce a quiet thump rather than the traditional sonic boom. The agency's simulator teams replicate every switch, dial and knob to match the actual cockpit layout, helping pilots build muscle memory before flying the real thing.

Workday CEO Carl Eschenbach on Thursday tried to ease worries that AI is destroying software business models. From a report: "It's an overblown narrative, and it's not true," he told CNBC's "Squawk Box" from the World Economic Forum in Davos, Switzerland, calling AI a tailwind and "absolutely not a headwind" for the company.

Software stocks have sold off in recent months on concerns that new AI tools will upend the sector and displace longstanding and recurring businesses that once fueled big profits. Workday shares lost 17% last year and have sunk another 15% since the start of 2026.

Autodesk said today it plans to cut approximately 1,000 jobs, or roughly 7% of its workforce, as part of what the company described as the final phase of a global restructuring effort aimed at strengthening its sales and marketing operations.

The maker of AutoCAD and other digital design software said a significant portion of the cuts will fall within customer-facing sales functions.

The new year was supposed to bring opportunities for beaten-down software stocks. Instead, the group is off to its worst start in years. From a report: The release of a new artificial intelligence tool from startup Anthropic on Jan. 12 rekindled fears about disruption that weighed on software makers in 2025.

TurboTax owner Intuit tumbled 16% last week, its worst since 2022, while Adobe and Salesforce, which makes customer relationship management software, both sank more than 11%. All told, a group of software-as-a-service stocks tracked by Morgan Stanley is down 15% so far this year, following a drop of 11% in 2025. It's the worst start to a year since 2022, according to data compiled by Bloomberg.

While unproven, the tool represents just the type of capabilities that investors have been fearing, and reinforces bearish positions that are looking increasingly entrenched, according to Jordan Klein, a tech-sector specialist at Mizuho Securities. "Many buysiders see no reasons to own software no matter how cheap or beaten down the stocks get," Klein wrote in a Jan. 14 note to clients. "They assume zero catalysts for a re-rate exist right now," he said, referring to the potential for higher valuation multiples.

alternative_right quotes a report from The Intercept: Federal prosecutors on January 9 charged Aurelio Luis Perez-Lugones, an IT specialist for an unnamed government contractor, with "the offense of unlawful retention of national defense information," according to an FBI affidavit (PDF). The case attracted national attention after federal agents investigating Perez-Lugones searched the home of a Washington Post reporter. But overlooked so far in the media coverage is the fact that a surprising surveillance tool pointed investigators toward Perez-Lugones: an office printer with a photographic memory. News of the investigation broke when the Washington Post reported that investigators seized the work laptop, personal laptop, phone, and smartwatch of journalist Hannah Natanson, who has covered the Trump administration's impact on the federal government and recently wrote about developing more than 1,000 government sources. A Justice Department official told the Post that Perez-Lugones had been messaging Natanson to discuss classified information. The affidavit does not allege that Perez-Lugones disseminated national defense information, only that he unlawfully retained it.

The affidavit provides insight into how Perez-Lugones allegedly attempted to exfiltrate information from a Secure Compartmented Information Facility, or SCIF, and the unexpected way his employer took notice. According to the FBI, Perez-Lugones printed a classified intelligence report, albeit in a roundabout fashion. It's standard for workplace printers to log certain information, such as the names of files they print and the users who printed them. In an apparent attempt to avoid detection, Perez-Lugones, according to the affidavit, took screenshots of classified materials, cropped the screenshots, and pasted them into a Microsoft Word document. By using screenshots instead of text, there would be no record of a classified report printed from the specific workstation. (Depending on the employer's chosen data loss prevention monitoring software, access logs might show a specific user had opened the file and perhaps even tracked whether they took screenshots).

Perez-Lugones allegedly gave the file an innocuous name, "Microsoft Word - Document1," that might not stand out if printer logs were later audited. In this case, however, the affidavit reveals that Perez-Lugones's employer could see not only the typical metadata stored by printers, such as file names, file sizes, and time of printing, but it could also view the actual contents of the printed materials -- in this case, prosecutors say, the screenshots themselves. As the affidavit points out, "Perez-Lugones' employer can retrieve records of print activity on classified systems, including copies of printed documents." [...] Aside from attempting to surreptitiously print a document, Perez-Lugones, investigators say, was also seen allegedly opening a classified document and taking notes, looking "back and forth between the screen corresponding the classified system and the notepad, all the while writing on the notepad." The affidavit doesn't state how this observation was made, but it strongly suggests a video surveillance system was also in play.

According to Bloomberg's Mark Gurman, Apple is reportedly planning a major Siri overhaul in iOS 27 and macOS 27 where the current assistant interface will be replaced with a deeply integrated, ChatGPT-style chatbot experience. "Users will be able to summon the new service the same way they open Siri now, by speaking the 'Siri' command or holding down the side button on their iPhone or iPad," says Gurman. "More significantly, Siri will be integrated into all of the company's core apps, including ones for mail, music, podcasts, TV, Xcode programming software and photos. That will allow users to do much more with just their voice." 9to5Mac reports: The unannounced Siri overhaul will reportedly be revealed at WWDC in June as the flagship feature for iOS 27 and macOS 27. Its release is expected in September when Apple typically ships major software updates. While Apple plans to release an improved version of Siri and Apple Intelligence this spring, that version will use the existing Siri interface. The big difference is that Google's Gemini models will power the intelligence. With the bigger update planned for iOS 27, the iOS 26 upgrade to Siri and Apple Intelligence sounds more like the first step to a long overdue modernization.

Gurman reports that the major Siri overhaul will "allow users to search the web for information, create content, generate images, summarize information and analyze uploaded files" while using "personal data to complete tasks, being able to more easily locate specific files, songs, calendar events and text messages." People are already familiar with conversational interactions with AI, and Bloomberg says the bigger update to Siri will be support both text and voice. Siri already uses these input methods, but there's no real continuity between sessions.

According to the Wall Street Journal, OpenAI and ServiceNow signed a three-year deal to embed AI agents directly into ServiceNow's enterprise workflows. CNBC reports: As part of the deal, ServiceNow will integrate GPT-5.2 into its enterprise workflow platform and create AI voice technology harnessing these models. "Bringing together our engineering teams and our respective technologies will drive faster value for customers and more intuitive ways of working with AI," said Amit Zavery, president, chief operating officer, and chief product officer at ServiceNow.

In an opinion piece for The Register, Steven J. Vaughan-Nichols argues that while "vibe coding" can be fun and occasionally useful for small, throwaway projects, it produces brittle, low-quality code that doesn't scale and ultimately burdens real developers with cleanup and maintenance. An anonymous reader shares an excerpt: Vibe coding got a big boost when everyone's favorite open source programmer, Linux's Linus Torvalds, said he'd been using Google's Antigravity LLM on his toy program AudioNoise, which he uses to create "random digital audio effects" using his "random guitar pedal board design." This is not exactly Linux or even Git, his other famous project, in terms of the level of work. Still, many people reacted to Torvalds' vibe coding as "wow!" It's certainly noteworthy, but has the case for vibe coding really changed?

[...] It's fun, and for small projects, it's productive. However, today's programs are complex and call upon numerous frameworks and resources. Even if your vibe code works, how do you maintain it? Do you know what's going on inside the code? Chances are you don't. Besides, the LLM you used two weeks ago has been replaced with a new version. The exact same prompts that worked then yield different results today. Come to think of it, it's an LLM. The same prompts and the same LLM will give you different results every time you run it. This is asking for disaster.

Just ask Jason Lemkin. He was the guy who used the vibe coding platform Replit, which went "rogue during a code freeze, shut down, and deleted our entire database." Whoops! Yes, Replit and other dedicated vibe programming AIs, such as Cursor and Windsurf, are improving. I'm not at all sure, though, that they've been able to help with those fundamental problems of being fragile and still cannot scale successfully to the demands of production software. It's much worse than that. Just because a program runs doesn't mean it's good. As Ruth Suehle, President of the Apache Software Foundation, commented recently on LinkedIn, naive vibe coders "only know whether the output works or doesn't and don't have the skills to evaluate it past that. The potential results are horrifying."

Why? In another LinkedIn post, Craig McLuckie, co-founder and CEO of Stacklok, wrote: "Today, when we file something as 'good first issue' and in less than 24 hours get absolutely inundated with low-quality vibe-coded slop that takes time away from doing real work. This pattern of 'turning slop into quality code' through the review process hurts productivity and hurts morale." McLuckie continued: "Code volume is going up, but tensions rise as engineers do the fun work with AI, then push responsibilities onto their team to turn slop into production code through structured review."

Asus won't release any new smartphones this year, and that may signal the brand's exit from the Android space altogether. From a report: Asus Chairman Jonney Shih confirmed the news at an event in Taiwan on Jan. 16. According to a machine-translated version of quotes reported by Inside, Shih said, "Asus will no longer add new mobile phone models in the future."

Shih said Asus will continue to support existing smartphone users with software updates and warranty assistance. This matches a previous report from DigiTimes earlier this month that said Asus wouldn't introduce new models in 2026. The big question is whether that means stepping back altogether or a temporary pause. In his speech, Shih alluded to the possibility that Asus may return to smartphones, but did not confirm it.

Seven out of ten C-suite executives believe traditional enterprise resource planning software has seen its best days, though the category remains firmly entrenched in corporate IT and opinion is sharply divided on what comes next. A survey of 4,295 CFOs, CISOs, CIOs and CEOs worldwide found 36% expect ERP to give way to composable, API-driven best-of-breed systems, while 33% see the future in "agentic ERP" featuring autonomous AI-driven decision-making.

The research was commissioned by Rimini Street, a third-party support provider for Oracle and SAP. Despite the pessimism, 97% said their current systems met business requirements. Vendor lock-in remains a sore point: 35% cited limited flexibility and forced upgrades as frustrations. Kingfisher, operator of 2,000 European retail stores including Screwfix and B&Q, recently eschewed an SAP upgrade in favor of using third-party support to shift its existing application to the cloud. Gartner analyst Dixie John cautioned that while third-party support may work in the short or medium term, organizations will eventually need to upgrade.

The European Commission "has opened a public call for evidence on European open digital ecosystems," writes Help Net Security, part of preparations for an upcoming Communication "that will examine the role of open source in EU's digital infrastructure." The consultation runs from January 6 to February 3, 2026. Submissions will be used to shape a Commission Communication addressed to the European Parliament, the Council, and other EU bodies, which is scheduled for publication in the first quarter of 2026... The call for evidence links Europe's reliance on digital technologies developed outside the EU to concerns over long term control of infrastructure and software supply chains... Open digital ecosystems are discussed in the context of technological sovereignty and the use of technologies that can be inspected, adapted, and shared.
Long-time Slashdot reader Elektroschock describes it as the European Commission "stepping up its efforts behind open-source software" Building on President von der Leyen's political guidelines, the initiative will review the Commission's 2020-2023 open-source approach and set out concrete actions to strengthen Europe's open-source ecosystem across key areas such as cloud, AI, cybersecurity and industrial technologies. The strategy will be presented alongside the upcoming Cloud and AI Development Act, forming a broader policy package aimed at reducing strategic dependencies and boosting Europe's digital resilience.
And "In just a few days, over 370 submissions have already been filed, indicating that the issue is touching a nerve across the EU," writes CyberNews.com: "Europe must regain control over its software supply chain to safeguard freedom, security, and innovation," suggests an individual from Slovakia. Similar perspectives appear to be widely shared among respondents...

The document doesn't mention US tech giants specifically, but rather aims to support tech sovereignty and seek "digital solutions that are valid alternatives to proprietary ones...."

"This is not a legislative initiative. The strategy will take the form of a Commission communication. The initiative will set out a general approach and will propose: actions relying on further commitments and an implementation process," the EC explains. Policymakers expect the strategy to help EU member states identify the necessary steps to support national open-source companies and communities.

Salesforce CEO Marc Benioff said this week that his company's software engineering headcount has remained "mostly flat" over the past year as internal AI tools have delivered substantial productivity gains.

Speaking on TBPN, Benioff said he has about 15,000 engineers who are "more productive than ever." The company has redirected its hiring efforts toward sales and customer engagement roles, hiring 20% more account executives this year as it pushes its Agentforce agentic AI service.

Human salespeople remain essential for explaining the "intricacies and nuances" of agentic AI to skeptical enterprise customers, he argued. Other parts of the business have seen deeper cuts. In a separate appearance on The Logan Bartlett Show, Benioff said that Salesforce had reduced its customer support workforce by roughly 50%.