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Microsoft Unveils In-House AI Models and Quantum Breakthrough as Tech Giant Moves to Reduce External Dependence

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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.

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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.

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AI Security Test Reveals Vulnerabilities in US Government Systems Within Hours

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An advanced artificial intelligence model developed by Anthropic identified vulnerabilities in highly sensitive US government computer systems within hours during a recent cybersecurity testing exercise, highlighting both the capabilities and risks associated with rapidly evolving AI technology.

The testing was conducted through Anthropic’s Project Glasswing initiative, a programme designed to evaluate how powerful AI systems can be used to strengthen cyber defenses while assessing potential threats to national security and critical infrastructure. According to a US official familiar with the exercise, the company worked closely with intelligence agencies to test its restricted-access model known as Mythos.

The official, speaking anonymously, said the AI was able to detect weaknesses across classified government networks in a matter of hours. While the system successfully identified vulnerabilities, officials stressed that finding security flaws does not necessarily mean the model could immediately exploit them.

The exercise attracted public attention after Democratic Senator Mark Warner of Virginia referenced the findings during a Senate Committee on Banking, Housing, and Urban Affairs hearing on June 11. Warner said information provided by the head of the National Security Agency and US Cyber Command indicated that the AI tool had penetrated nearly all classified systems tested, accomplishing in hours what traditionally could take weeks.

The results have intensified debate in Washington over how advanced AI systems should be managed and regulated. Anthropic has maintained a cooperative relationship with US government agencies on security research, but tensions have emerged between the company and the Trump administration over the deployment of its most powerful models.

Earlier this month, the administration issued a directive requiring Anthropic to restrict access to its latest AI systems, known as Fable 5 and Mythos 5, for foreign users. The order followed President Donald Trump’s executive action establishing a framework for reviewing national security risks associated with cutting-edge AI technologies before they are publicly released.

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Anthropic responded by limiting access to certain models, though the company questioned whether the government’s restrictions were necessary. The firm has argued that concerns about cybersecurity risks should be balanced against the benefits AI can provide in strengthening digital defenses.

The directive has also drawn criticism from the technology sector. More than 100 cybersecurity specialists and executives from major technology companies, including Adobe and Nvidia, have signed a letter urging the government to reconsider the restrictions.

The group acknowledged that Anthropic’s models are highly effective at identifying software vulnerabilities and simulating cyberattacks. However, they argued that similar capabilities exist in other advanced AI systems and warned that limiting access to leading defensive technologies could weaken US cybersecurity efforts at a time when rival nations are investing heavily in artificial intelligence.

The debate reflects growing concerns over how governments and technology companies can balance innovation, security and competition as increasingly powerful AI systems reshape the cybersecurity landscape.

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Tech Innovations Offer Relief as Europe Faces Intense Summer Heat

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As Europe experiences another wave of extreme temperatures, consumers are increasingly turning to technology designed to provide relief from the heat. From advanced misting fans to wearable cooling devices, manufacturers are introducing products aimed at making hot weather more manageable both indoors and outdoors.

Among the products attracting attention are misting fans developed by Chinese company Dreo. Showcased earlier this year at the Consumer Electronics Show (CES), the company’s TurboCool range combines airflow with a fine ultrasonic mist that evaporates almost instantly. The technology allows users to enjoy a cooling effect without leaving moisture on furniture or surfaces.

Dreo offers several models, including compact desktop versions and larger tower fans designed for home use. The company says its larger units can significantly reduce room temperatures, making them a popular option for households seeking alternatives to traditional air conditioning systems. Industry observers note that misting fans have gained popularity because they actively help lower temperatures rather than simply circulating warm air.

Portable cooling devices are also seeing strong interest as people look for ways to stay comfortable while travelling or spending time outdoors. One of the most talked-about products in this category is Dyson’s Husjet Mini Cool handheld fan.

The device uses a precision nozzle and honeycomb mesh system instead of conventional spinning blades. According to Dyson, the fan can generate airflow speeds of up to 25 metres per second and operate for as long as six hours on a single charge. The compact fan can be used by hand, placed on a desk, or worn around the neck using a lanyard, making it suitable for a variety of situations.

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Neck fans have also emerged as a growing market segment. These devices target the neck area, where major blood vessels are located close to the skin, helping users cool down more efficiently. One example is the JisuLife Neck Fan Life3 FA14, which offers multiple speed settings and a battery life of up to 16 hours. Such products have become particularly appealing to cyclists, commuters and outdoor workers during periods of high heat.

Wearable cooling technology is another area seeing rapid development. Earlier this year, Sony introduced the Reon Pocket Pro, a device often described as a wearable air conditioner. Worn beneath clothing at the base of the neck, the unit cools the body directly rather than blowing air.

Sony says the device uses sensors and software algorithms to monitor factors such as temperature, humidity and user activity, adjusting cooling performance accordingly. The Reon Pocket Pro can reportedly operate for up to 15 hours on a single charge and also offers a heating function during colder months.

As heatwaves become more frequent across Europe, demand for innovative cooling technologies is expected to grow, providing consumers with a wider range of options to cope with rising temperatures.

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Sweden’s ‘W’ Platform Joins Europe’s Push to Build Big Tech Alternative

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A new Sweden-based social media platform called “W” has entered the growing field of European tech initiatives seeking to challenge the dominance of US-based Big Tech companies, as the European Commission announced its participation on Wednesday.

The platform, which was first introduced at the World Economic Forum in January, promotes itself as a digital space built on “verified human users, transparency, privacy and free speech.” It has now launched a beta version, with access limited to users who pass a vetting process before being allowed to post content.

European Commission President Ursula von der Leyen and European Council President Antonio Costa are among the early official users of the platform, signalling political support for the initiative. Users are required to verify their identity either by registering their real name or by using “W Identity,” a separate verification tool that scans passports or national identity documents directly on a user’s device.

According to the company, W was developed by a group of entrepreneurs working across media, technology and artificial intelligence. The platform states that it plans to host data exclusively on European servers operated by European companies, aligning its infrastructure with EU data protection standards.

CEO Anna Zeiter has said the platform intends to rely on European service providers, including Switzerland-based encrypted email company Proton and Finland’s cloud computing firm UpCloud, as part of its commitment to privacy-focused operations within Europe.

The launch comes amid a broader push across the continent to reduce dependence on US technology giants and strengthen what policymakers describe as “digital sovereignty.” Governments in France, Germany and the Netherlands have previously raised concerns that reliance on foreign-owned platforms could expose Europe to security risks and limit control over sensitive data.

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W is part of a wider wave of European alternatives to mainstream social media networks. Other emerging platforms include Bulle in France, Eurosky, Monnett and eYou, all aiming to offer regionally governed digital ecosystems.

Some of these platforms recently signed a declaration supporting the development of Europe’s “social stack,” a shared digital infrastructure intended to provide a more diverse and resilient online environment. The initiative argues for reducing reliance on dominant global platforms and promoting alternatives with governance structures rooted in Europe.

However, analysts have noted that competing with established social media giants presents significant challenges. Experts have pointed out that new platforms often struggle to maintain large user bases, as they typically lack the scale, engagement features and convenience that have made existing networks dominant in global digital communication.

Despite these challenges, supporters of W and similar projects say the push reflects a broader effort to reshape Europe’s digital landscape and assert greater control over data, privacy and online governance in an increasingly competitive global tech environment.

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