Microsoft is burning through billions on AI, but Wall Street is finally demanding to see where the payoff is. The earnings announcement triggered a $357 billion valuation wipe-out, the largest in Microsoft's history and the second-largest in history overall (Nvidia managed to lose $593 billion in value in the wake of DeepSeek in early 2025).

Windows

• Windows 11 has over one billion users - and, surprise, it got their faster than Windows 10 without any of the shenanigans
• Microsoft to address the quality issues in Windows 11 in 2026
• There is already evidence that Microsoft is trying to make Windows 11 suck less: Recent OneDrive changes that address a key ensh*ttification, and let's not forget all those security advances
• What did Microsoft really promise? Not much
• Microsoft has new EVPs for Security and Quality
• Microsoft belatedly delivered the January Week D update last Thursday, a preview of this month's Patch Tuesday
• Dev and Beta builds both deliver Mark Russinovich's sysmon tool

Microsoft earnings deep dive

• Microsoft reported a net income of $38.5 billion on revenues of $81.3 billion in the quarter ending December 31. Those figures represent gains of 60 percent and 17 percent, respectively, year-over-year
• Earnings analysis: All eyes are on AI and no one is happy
• Microsoft spent $37.5 billion on AI infrastructure (capex) in the quarter, up 66 percent YOY, and it's on track to spend $150+ billion in the fiscal year
• Every single question was about this and how it will ever recoup the costs
• There are now 15 million paid Microsoft 365 Copilot seats out of 450+ million Microsoft 365 seats
• OpenAI is Microsoft's biggest Azure customer, but it's unclear if there is any real money there because of accounting tricks
• Windows, Edge, and Bing all "gained share," PC maker revenues were up just 1 percent, the Windows 10 upgrade cycle was mostly a bust (it's likely that most of it was tied to RAM pricing fears, too)
• Xbox fell off a cliff with content and services revenues down 5 percent in a holiday quarter somehow and Xbox hardware revenue declined an astonishing 32 percent YOY
• Standalone Office 2025 suite was a surprise hit, Hood is curious if that continues
• Microsoft 365 "cost of business" up 10 percent YOY because of AI costs
• AMD revenues up 34 percent to $10.3 billion
• Apple delivers record revenues of $143.8 billion; iPhone made more revenues by itself than all of Microsoft

AI

• Microsoft is going to basically make an app store for content makers who wish to be paid for use by AI
• Anthropic advertises that Claude will be advertising-free, unlike ChatGPT
• The next Firefox will include the promised AI kill switch and Vivaldi "extends the middle fingerˮ to AI

Xbox and games

• AMD reveals next Xbox console in 2027
• We're getting a solid collection of Xbox Game Pass titles for the beginning of February
• Battlefield 6 was the best-selling shooter of 2025 and EA made $1.9 billion in Q4
• Epic Games has big plans for its PC launcher/store
• Nintendo has now sold 17 million Switch 2s as OG Switch hits 155 million units

Tips and picks

• Tip of the week: Make OneDrive Folder Backup work for you
• App pick of the week: Bitwarden (TWiT sponsor)
• RunAs Radio this week: Getting Started using Purview with Erica Toelle
• Brown liquor pick of the week: Glendronach Ode to

These show notes have been truncated due to length. For the full show notes, visit https://twit.tv/shows/windows-weekly/episodes/969

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

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Microsoft's Patch Tuesday blunder triggers emergency fixes, surprise layoffs ripple through Amazon, and the crew debates whether rapid AI advances spell the end of traditional apps. Also, password managers do a lot more than manage passwords, so there's one thing everyone needs to get right.

Windows 11

• Dev splits from Beta, tests what will surely be 26H1 - After last week's show, Microsoft did issue that same Beta build in the Dev channel for some reason
• Dev and Beta get same fixes in different builds, but no new features
• 24H2 and 25H2 Release Preview update(s) are a peek at the next Patch Tuesday, lots of changes
• January Patch Tuesday update was so terrible it required two emergency fixes, the second of which went out late Sunday

Earnings/industry

• Intel falls flat in Q4, full year 2025 despite U.S. "investment"
• Amazon lays off 16,000 employees
• Microsoft, Apple, earnings this week, Alphabet, Amazon are next week

AI

• Microsoft announces Maia 200 AI datacenter processor
• Like Baldric in Black Adder, Apple has a cunning plan for an AI Siri
• With AI costs soaring, cheaper new AI plans appear somehow
• OpenAI was last week with big expansion of ChatGPT Go
• Google does the same this week with AI Plus plan
• OpenAI, Anthropic (this week), others are adding "apps" to their chatbots
• Microsoft is exposing app features as AI Actions in Windows 11
• Paul opined that this semantic/programmatic capability was the end of apps
• But we can now essentially vibe-code our own custom apps - this is vaguely reminiscent of the home computer/DIY era, but without the technical knowledge requirements
• The age of native apps is over, at least on desktop. Will mobile fall next?

Dev

• Microsoft introduces the Windows App Development (winapp) CLI. For some reason

Xbox and gaming

• Microsoft refreshes the Xbox Cloud Gaming web experience — bigger changes coming?
• Fable is coming to Xbox, PC, PS5 in late 2026

Tips and picks

• Tip of the week: Choose a single password manager, make your life easier
• App pick of the week: Proton Pass
• RunAs Radio this week: Business Process Automation in 2026 with Ian Cooper
• Brown liquor pick of the week: Tullibardine 18
  

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

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This week, the hosts go deep on out-of-band updates, unwanted "innovations," and the uneasy cost of tech's latest gold rush. Plus, securing a Microsoft account is not as hard as some think, and neither are passkeys once you get past the jargon. And for developers, AI Dev Gallery offers a fascinating glimpse at what you can do for free with AI used against a CPU, GPU, or NPU.

Windows 11

• Microsoft issues an emergency fix for a borked Windows Update. Right. A fix for a fix.
• Hell freezes over, if only slightly: Microsoft quietly made some positive changes to forced OneDrive Folder Backup. Donʼt worry, itʼs still forced (and appears to be opt-in, but isnʼt). But you can back out more elegantly. So itʼs opt-out, not opt-in, but a step forward. Plus, a new behavior
• Windows 11 on Arm PCs can now download games from the Xbox app (previously only through the Insider program)
• Over 85 percent of Xbox games on PC work in WOA now
• Prism emulator now supports AVX and AVX2 and Epic Anti-Cheat, and there is a new Windows Performance Fit feature offering guidance on which titles should play well.
• Beta: New 25H2 build with account dialog modernization, Click to Do and desktop background improvements. Not for Dev, suggesting itʼs about to move to 26H1
• Notepad and Paint get more features yet again. Notably, these updates are for Dev and Canary only, suggesting these might be 26Hx features (then again, versions don't matter, right?)

AI

• Just say no: To AI, to Copilot, and to Satya Nadella
• Our national nightmare is over: You can now (easily) hide Copilot in Microsoft Edge
• ChatGPT Go is now available worldwide, ads are on the way because of course
• Wikipedia partners with Amazon, Meta, Microsoft, more on AI

Xbox & gaming

• January Xbox Update brings Game Sync Indicator, more
• Solid second half of January for Xbox Game Pass
• Microsoft will likely introduce a free, ad-supported Xbox Cloud Gaming tier because of course

Tips & picks

• Tip of the week: Secure your Microsoft account
• App pick of the week: AI Dev Gallery
• RunAs Radio this week: Ideation to Implementation with Amber Vandenburg
• Liquor pick of the week: Estancia Raicilla

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Satya Nadella gave up much of his CEO duties in 2025. Are we on the cusp of a new CEO? And does some money manager/political duo like Amy Hood and Brad Smith actually make more sense in this role than an engineer-type for the modern Microsoft?

Microsoft is trying to win our hearts and minds on AI

• After spending three years trying to jam AI down our collective throats, Microsoft has only met resistance. Now, the real marketing begins
• Governments and regulators: Microsoft will build out its AI infrastructure by actually paying for it and respecting the communities in which this happens
• Customers: Satya Nadella is blogging, and he wants us to stop complaining about AI. He's the wrong messenger

Windows 11

• First Patch Tuesday of 2026 brings security and bug fixes but no new features
• First update of 2026 brings Copilot-powered image descriptions in Narrator, new IT policies for Copilot, other changes to Dev & Beta
• Dev is about to switch to 26H1
• IDC says that PC sales rose 8.1 percent in 2025, warns again about 2026
• The good & bad of Paul's Panther Lake laptop
• Dell doesn't sell any PCs to consumers so it obviously has opinions about why consumers don't buy PCs for AI
• Microsoft will soon retire its Lens mobile app

AI

• Apple predictably partners with Google to bring Gemini to Siri
• Samsung correctly points out we're all using AI already so there's no reason to complain about it
• We can't trust AI, so Microsoft is letting Copilot go shopping with our credit cards
• We can't trust AI, so OpenAI is giving ChatGPT access to our private health data
• Gmail is getting more AI because email is the low-hanging fruit of data collection

Xbox and gaming

• Developer Direct returns on January 22 with Fable and Forza 6 gameplay
• Microsoft to bring Avowed to PS5 in February

Tips and picks

• Tip of the week: Kick off 2026 with a security checkup
• App pick of the week: Microsoft Local Foundry
• RunAs Radio this week: Azure in 2026 with Jeremy Winter
• Brown liquor pick of the week: Don Julio 70

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

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PC makers are shaking up CES with wild designs and next-gen chips, but the real story is Microsoft's bold software moves, AI's hardware hunger, and a candid debate over whether any tech company still puts users first. Come for the Windows updates, stay for the whisky warnings and robot bathroom assistants.

CES 2026 is here with the 4K hummingbird feeder of your dreams

• New PCs and more from HP consumers/commercial, HP gamers, Lenovo, others
• The first official Copilot+ PC desktops
• Snapdragon X2 Plus joins X2 Elite and X2 Elite Extreme
• Intel Panther Lake has meaningful CPU and graphics performance gains, but predictable reliability issues
• AMD Ryzen AI 400 series is a minor bump

Windows

• Paul was the first to report that Microsoft is refactoring it all with Rust
• A Microsoft distinguished engineer wrote about his desire to refactor all C/C++ code in the company with Rust by 2030
• Some mistook this to mean "rewriting Windows with Rust,ˮ so he had to issue a clarification. But I never wrote that.
• Heads-up: That will happen, but this is really about Azure first and the core underlying code in Microsoftʼs most important platforms
• Microsoft released hardware-accelerated BitLocker in late 2025 and never told anyone. It requires the latest PC CPUs
• Copilot app update that adds text editing actions to Copilot Vision across channels
• Dev and Beta got first previews of AI agents on the Taskbar, starting with the Researcher agent, plus underlying Agent Launchers experience
• IDC says the global memory shortage (thanks, AI!) could screw up PC and smartphone growth this year

AI

• ChatGPT now has an app store, but it has a ways to go
• Mozilla Firefox will have a "killswitchˮ for AI
• Our national nightmare will soon be over, LG will let users remove Copilot app from their smart TVs

Xbox and gaming

• First Xbox Game Pass releases of 2026 include Resident Evil Village and Star Wars Outlaws
• Xbox Cloud Gaming is coming to Hisense smart TVs and to the latest Fire TV smart TVs
• GOG goes independent, will continue DRM-free push
• "Have a blastˮ and other FPS throwbacks from the 1990s
• Valve quietly killed the LCD Steam Deck model

Tips and picks

• Tip of the week: Itʼs time to give Little AI a look
• App pick of the week: Bonjourr
• RunAs Radio this week: What AI can do for SysAdmins in 2026 with Cecilia Wiren
• Brown liquor pick of the week: The Singleton of Dufftown 12

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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This isn't your usual Windows Weekly. Pour a glass and settle in as Leo Laporte, Paul Thurrott, and Richard Campbell ditch the headlines for whisky-soaked tech stories, behind-the-scenes Microsoft confessions, and the unexpected joys (and disasters) of vintage hardware. These are the tales you only hear when the mics are (almost) off.

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

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The Windows Weekly theme music is courtesy of Carl Franklin.

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We were inundated with new Windows features in 2025, but which ones actually moved the needle? Fortnite isn't just back on iPhone and Android, it's available on Windows 11 on Arm, and it works great! Plus, 2 big mobile wins for Epic Games and some thoughts on the "right" way to roll out AI features.

Windows 11

• Best Windows 11 updates of 2025, in no particular order...
• Dark mode improvements to File Explorer
• Widgets major overhaul with separate widgets and Discovery feed
• Xbox Full Screen experience - especially good on handhelds, of course, but also any PC you use for gaming with a controller
• Click to Do (Copilot+ PC only)
• External fingerprint reader support for Windows Hello ESS
  -External/USB webcams supported by Windows Studio Effects (Copilot+ PC only)
• Quick Machine Recovery is the tip of a wave of new foundational features like Admin Protection, Smart App Control (updates), and more that go beyond surface-level look and feel
• Redesigned Start menu isn't perfect but it's a nice improvement
• Copilot Vision, though this type of thing may make more sense on phones
• AI features in Paint, Photos, Notepad, and Snipping Tool
• Natural language interactions like the agent in Settings, file search, and more (mostly Copilot+ PC only, but you can do this in Copilot as well)
• Bluetooth LE support for improved audio quality in game chat, voice calls
• Gaming on Windows 11 on Arm and Snapdragon X: Major steps forward, but the same issue as always
• Looking ahead to 2026: 26H1, Agentic features that work, potential Windows 12, and AI PCs

AI

• An extensive new interview with Mustafa Suleyman confirms why this guy is special and how confusing it is that Copilot is so disrespected
• Microsoft Copilot is auto-installing on LG smart TVs and there's no way to remove it
• GPT-5.2 is OpenAI's answer to Gemini 3
• ChatGPT Images is OpenAI's answer to Nano Banana Pro
• Disney invests $1 billion OpenAI, sues Google
• Opera Neon is now generally available for $20 per month
• AI is moving quick as we all know but the bigger issue may be the incessant marketing about features like agents that don't even work now
• Microsoft is getting pushback on forced Copilot usage, price hikes
• Google is expanding its use of "experiments" outside of mainstream products with things like NotebookLM, Mixboard, CC, and much more. Maybe this is the better approach: Test separately and then integrate it into existing products
• Oddly enough, Microsoft does have a Windows AI Lab for this kind of experimentation
• Many small models vs. one big LLM in the cloud

Mobile

• Fortnite is back in the Google Play Store in the U.S. as Google plays nice
• Apple loses its contempt appeal, the end of "junk fees" (Apple Tax) is in sight

Xbox and gaming

• Xbox December Update has one big update for the mobile app and one big update for Xbox Wireless Headphones
• There's a new Xbox Developer Direct coming in January
• Half-Life 3 may really be happening, but it will be a Steam Machine launch title so it could be a while

Tips & picks

• Tip of the year: De-enshittify Windows 11
• App pick of the year: Fortnite
• RunAs Radio this week: Zero Trust in 2026 with Michele Bustamante
• Brown liquor pick of the week: Lark Symphony No. 1

These show notes have been truncated due to length. For the full show notes, visit https://twit.tv/shows/windows-weekly/episodes/963

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

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December 2025's Patch Tuesday brought major shifts, but the real action is in Microsoft's pricing, privacy battles, and the arms race to control AI-enabled browsers. Plus, Paul recommends Tiny11 Builder for a clean install, or Win11Debloat for an existing install. Then, Rufus to create installation media without the forced Microsoft account (MSA) sign-in or hardware requirement checks. Use MSEdgeDirect to use the default web browser for stories from Widgets, web-based search results, etc. And ExplorerPatcher can fix the performance and reliability issues in File Explorer.

It's the final Patch Tuesday of 2025

• Major dark mode updates (with a fix for the "flashbang" problem)
• AI Agent in Settings, Click to Do, Windows Studio Effects, and Search improvements for Copilot+ PCs
• Many other improvements: FSE, Share, Settings, Widgets, more

More Windows 11

• New 25H2 preview build on Beta/Dev adds MCP public preview, Quick Machine Recovery auto-enabled, Unified Update Orchestration Platform, Windows MIDI services

Microsoft 365

• Microsoft 365 is getting a lot more expensive in mid-2026. You didn't think all those free AI updates were free, did you?

AI

• Paul has been talking about "programmatic" apps and services because he wasn't sure of a term for this type of interaction. But there is a term for this: Semantic. As in semantic web. And there you go
• Microsoft one of 1,000 companies partnering on Agentic AI Foundation because you're getting agents whether they work or not
• Gartner says NO to AI web browsers
• The New York Times is suing Perplexity for all the obvious reasons
• After a big win in the legal battle with OpenAI
• Opera for Android gets a big AI update
• Google Workspace Studio brings code-free agent creation to business users - automation is a solid AI use case

Xbox

• Xbox Series X|S notably absent during Black Friday sales
• Call of Duty won't repeat the mistakes of the past anymore since it didn't work out twice now
• MS Flight Simulator 2024 is now available on PS5
• Red Dead Redemption comes to mobile for the first time, free with a Netflix account

Tips & Picks

• Tip and app(s) of the week: De-enshittify Windows 11
• RunAs Radio this week: Incident Management and the Crowdstrike Event with Liam Westley
• Brown liquor pick of the week: Old Farm Pennsylvania Straight Rye Whiskey

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Can the AI boom survive its own hype? This episode takes on the future of OpenAI, tech's subscription fatigue, and why "Made with AI" labels might be the new scarlet letter. Plus, Microsoft's ugly sweaters are back for some reason.

Windows 11

• Week D comes a week late and in the wrong month, but it's a big one, and a preview of what to expect next week in Patch Tuesday
• More pervasive dark mode
• Copilot+ PC exclusives: Improvements to Click to Do, Windows Search, Windows Studio Effects, Agent in Settings
• Expansion of FSE availability
• Improvements across Settings, Share, File Explorer, Desktop Spotlight, more
• Aluminium OS is the name of the ChromeOS/Android Frankenstein that will take on Windows
• Android 16 QPR2 is here with about 1,000 new features and maybe a saner approach to OS updating than what we see on Windows

AI

• AI slop is no enshittification: Human error is still a much bigger issue
• Epic Games CEO Tim Sweeney is right: The "Made with AI" label is silly and needs to go
• OpenAI declares a "code red" after Google finally figured out AI
• Opera quietly does an about-face on AI in its browsers
• Opera Neon gets one-minute deep research, Gemini 3, and Nano Banana

Xbox and gaming

• Mortal Kombat 1, more coming to Game Pass in first half of December
• Valve is quietly bringing SteamOS, Windows games to Arm

Tips & picks

• Tip of the week: Time to cull
• Tip of the week #2: Time to look back
• RunAs Radio this week: The M365 Copilot Data Readiness Checklist with Nikki Chapple
• Brown liquor pick of the week: Stumbras Starka

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Pavan Davuluri only spoke at one Ignite 2025 session, and it did not deserve the hate he got. But what did he really say?

• Copilot is a front-end for apps and cloud AI services, agents are background processes.
• Apps in Windows need to become programmatic so AI and agents can control them.
• You are in control. You being IT and the user. These experiences are off by default, opt-in, and optional. This is the end of whatever BS argument anyone has about this stuff.
• Copilot Voice because AI is better when you babble and is often more natural than typing
  • Key concept: Apps, CLIs, etc. expect exact commands, AI is all about intent, just do what I want, not exactly what I say. This is why, yes, people WILL want to talk to their PCs (and other devices)
• UIs for these new features will look/feel natural in Windows
  • Search box in Taskbar is getting updated to orchestrate between local/web search and Copilot capabilities, including agents
  • Agents will appear as app icons in Taskbar when fired, can be check in on, can post notifications for you to attend to
  • Integration of M365 Copilot capabilities with Windows - Better together story, with things like Writing Assistance for every text box
  • Accessibility updates thanks to AI - Fluid Dictation, which is what makes Copilot Voice make so much sense
• All the security, privacy, and IT management the audience expects

Windows Insider Program

• Dev and Beta builds include Full Screen Experience on all PCs, new Notepad app, more

Hardware - Earnings

• Lenovo PC business up 12 percent to $15.1 billion, 25.6 percent unit share
• HP up 4 percent to $14.6 billion, but job cuts for AI are coming
• Dell PC business up 3 percent to $1.41 billion

AI and Stuff

• Microsoft releases local Fara-7B agentic model for computer use
• ChatGPT's new coding model is optimized for Windows
• Dear God, you must see Nano Banana Pro to understand Google's lead
• Google is bringing AirDrop to Android, starting with Pixel. This is what happens when regulators "force design changes on OS makers."

Xbox and Gaming

• Xbox Cloud Gaming usage is up 45 percent YOY. Sure. What's 45 percent of 3 people?
• Xbox Cloud Gaming is adding per-game resolution settings, to 1440p for Game Pass Ultimate customers
• ROG Xbox Ally is getting default game profiles, in preview for 40 titles now
• Microsoft open sources the source code for Zork, Zork II, and Zork III
• New Chromebook buyers get one year of Nvidia GeForce NOW with Fast Pass

Tips and Picks

• Tip of the week: Finding experts is more important than ever
• We live in the age of stupid. Find the smart and never let go
• Also, Xbox is having a good Black Friday sale
• App pick of the week: Copilot Mode in Microsoft Edge
• Also: Perplexity Comet on Android

RunAs Radio this week: Christmas Gifts for SysAdmins with Joey Snow and Rick Claus

• https://runasradio.com/Shows/Show/1012

Brown liquor pick of the week: Sidetrack Stone Whisky

• https://www.huskdistillers.com/shop/sidetrack-stone-whisky

These show notes have been truncated due to length. For the full show notes, visit https://twit.tv/shows/windows-weekly/episodes/960

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Sponsors:

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