Tech
Microsoft Unveils In-House AI Models and Quantum Breakthrough as Tech Giant Moves to Reduce External Dependence
Microsoft has taken a major step toward reducing its reliance on external artificial intelligence partners, unveiling seven in-house AI models at its Build 2026 developer conference in San Francisco. The move signals a strategic shift as the company seeks greater control over its AI stack while its key investee firms prepare for high-profile public listings.
Satya Nadella, Microsoft’s chief executive, told attendees that the industry is entering a new phase in which companies must do more than simply consume frontier AI systems. “We believe the time has come for every company to move from consuming a frontier model to fully participating at the frontier,” he said.
At the centre of the announcement is MAI-Thinking-1, Microsoft’s first reasoning model built entirely from scratch using commercially licensed data and without distillation from external systems. The model includes 35 billion active parameters and a 256,000-token context window, designed for complex reasoning tasks, coding, and long-form instruction handling.
Microsoft also introduced MAI-Code-1-Flash, a coding-focused model integrated into GitHub Copilot and Visual Studio Code, aimed at converting natural language prompts into functional software code. The company said these tools will run on Azure infrastructure, allowing it to reduce costs currently paid to external model providers and potentially offer cheaper services to developers.
Mustafa Suleyman, chief executive of Microsoft AI, said internal testing suggested strong performance gains. After optimisation for consulting firm McKinsey, he said the new models outperformed OpenAI’s GPT-5.5 in quality while offering what Microsoft estimates as up to ten times better cost efficiency, based on scaled public pricing comparisons.
In independent evaluations conducted by Surge, Microsoft’s third-party rating partner, MAI-Thinking-1 was reportedly preferred over Anthropic’s Claude Sonnet 4.6, while matching Claude Opus 4.6 on coding benchmarks.
Alongside its AI announcements, Microsoft revealed progress in quantum computing. The company’s new Majorana 2 chip is said to be 1,000 times more stable than its predecessor, extending qubit lifespan from milliseconds to an average of 20 seconds. While still far from practical deployment, Microsoft believes this marks a meaningful step toward scalable quantum machines.
Zulfi Alam, corporate vice president of Microsoft Quantum, said the company aims to deliver a commercially useful quantum system by 2029, though current prototypes contain only 12 qubits, far short of the millions required for full-scale systems.
The announcements come as Microsoft’s AI partners move toward public markets. Anthropic has filed confidentially for an IPO following a major funding round valuing it at $965 billion, while OpenAI is also preparing a filing. Microsoft has invested heavily in both companies, committing billions of dollars while integrating their models into Azure.
The new direction suggests Microsoft is positioning itself to compete directly with its own partners, as the race for dominance in advanced AI and next-generation computing intensifies.
Tech
Robotics Firm Says AI-Powered Humanoid Robots Could Carry Weapons by 2027
A U.S. robotics company developing artificial intelligence-powered humanoid robots says weaponised versions of the technology could begin testing as early as next year, following field trials in Ukraine, raising fresh questions about the future of autonomous systems in modern warfare.
Foundation Future Industries, which builds humanoid robots for commercial and military applications, has already tested its Phantom robots in Ukraine in non-combat roles. Chief Executive Officer Sankaet Pathak said the company expects to explore weaponisation after evaluating the results of those pilot programs.
Pathak said public fears are often shaped by science fiction but argued that humanoid robots would not replace existing weapons such as missiles or drones.
“I think we have this psychological reaction, which is like the Terminator, but the reality is not really like that,” he said.
Instead, he believes humanoid robots could be deployed for highly precise military operations where limiting damage to infrastructure and reducing civilian casualties are priorities.
According to Pathak, drones and conventional weapons remain more effective for large-scale attacks, while humanoid robots would be better suited to complex ground missions requiring careful movement through buildings and urban environments.
He added that robots are unlikely to replace drones on the battlefield but could help reduce risks faced by soldiers in increasingly dangerous combat zones.
Currently, there is no international treaty specifically regulating humanoid or autonomous combat robots. Their use falls under existing international humanitarian law, which requires distinction between military targets and civilians during armed conflict.
The issue has drawn increasing attention from the United Nations. Last week, UN Secretary-General António Guterres renewed calls for restrictions on lethal autonomous weapons systems, describing them as “killer robots” capable of selecting and attacking targets without human judgment. The UN has been negotiating a treaty on lethal autonomous weapons since 2023, with proposals calling for a legally binding agreement by 2026.
Pathak argued that humanoid robots should be treated similarly to other precision-guided military systems already in service, including armed drones and unmanned ground vehicles.
Foundation’s robots rely on artificial intelligence built around so-called world models. Unlike large language models that predict text, these systems learn from video, simulations and spatial information to understand physical environments and predict how objects and people move over time.
The company believes these models are essential for creating robots capable of safely navigating complex surroundings.
While concerns persist about advanced AI becoming uncontrollable, Pathak said the greater short-term threat comes from criminals or extremist groups misusing publicly available AI tools for cyberattacks, disinformation campaigns or modifying commercial drones for attacks.
He believes scenarios involving AI independently rewriting its own objectives and improving itself remain several major technological breakthroughs away.
Beyond combat, Foundation sees immediate military uses for its humanoid robots in logistics, reconnaissance and building inspections. Those capabilities have already been evaluated in Ukraine, helping shape the development of the company’s next-generation Phantom 2 robot.
The upgraded model is designed for harsh outdoor conditions, offering waterproof and dustproof protection, an increased payload capacity of around 80 kilograms and greater resistance to impacts.
Foundation currently leases Phantom robots to commercial customers for about $100,000 annually per unit, while military buyers purchase the machines at similar prices. Its investors include Eric Trump, payment company Stripe and venture capital firm Define.
Tech
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Tech
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