Computer pioneer Microsoft turns 50 in the age of AI
Microsoft has been at the heart of computing for half a century, becoming a tech stalwart almost taken for granted as lifestyles embraced the internet.
As the company, founded with a vision of putting computers in every home and office, celebrates its 50th anniversary on Friday, it is looking to boost its fortunes by being a leader in the fast-developing field of artificial intelligence (AI).
"From a storytelling standpoint, they've been a boring company and a boring stock," eMarketer analyst Jeremy Goldman said of the Richmond, Washington-based behemoth.
"It's funny because they have a $2.9 trillion market cap, and that is huge," he continued, referring to Microsoft's value based on its share price.
The only company with a higher market cap is iPhone maker Apple.
Cloud computing is fueling Microsoft's revenue with the help of its ubiquitous Office software, now hosted online and no longer released in boxes of floppy disks or CDs.
"It's not a very sexy infrastructure, but it's a very valuable one," Goldman said of Microsoft's data centers and software at the foundation of its cloud-computing platform.
Amazon Web Services (AWS) and Google are Microsoft's cloud-computing rivals.
- 'Micro-Soft' -
Clouds were the stuff of weather forecasts rather than computing when Bill Gates and childhood friend Paul Allen founded what was first called "Micro-Soft" in 1975.
They launched the MS-DOS operating system that became known as "Windows" and went on to run most of the world's computers.
Microsoft Office programs including Word, Excel and PowerPoint became standard business tools, even fending off free Google Docs software.
"Microsoft had a lot of businesses that were weaker and challenged -- the perfect example is Office," Goldman said.
"That Office is still such a meaningful business for them says something about the way they were able to innovate."
Current chief executive Satya Nadella championed a Microsoft shift to making its software available on just about any device as subscription services hosted in the cloud.
The move likely saved Microsoft from seeing free services like Google Docs reduce their market share to zero, the analyst said.
- 'Achilles heel' -
Microsoft remains in the shadow of other US tech giants when it comes to offerings such as social networks, smartphones and the AI-infused digital assistants that have become woven into people's lives, but it is not for lack of effort.
Microsoft introduced Xbox video game consoles in 2001, steadily building up its stable of studios, making the blockbuster buy of Activision Blizzard two years ago and adding an online subscription service for players.
And despite its launch of the Bing search engine in 2009, Google still dominates that market.
Microsoft in 2016 bought career-focused social network LinkedIn, which has seen steady growth. But it still lacks the reach of Meta's Facebook or Instagram, or the influence of Elon Musk's X (formerly Twitter).
Microsoft is among those in the running to buy TikTok, which faces a ban in the United States if not sold by China-based ByteDance.
While Apple and Google have excelled at making it easy or even fun for users to engage with products, that has been an "Achilles heel" for Microsoft, according to Goldman.
"It's never been a strong suit of theirs," the analyst said.
- Mobile miss -
Known for a focus on sales rather than innovation, Steve Ballmer, who followed Gates as chief of Microsoft from 2000 to 2013, has been faulted for missing the shift to smartphones and other mobile computing devices.
His successor, Nadella, took over with a vow to make Microsoft a "mobile-first, cloud-first" company and Microsoft has since invested heavily in AI, taking a stake in ChatGPT-maker OpenAI and building the technology into offerings including Bing, though to little avail.
- Behind in AI? -
Independent analyst Jack Gold believes that despite those investments and efforts, Microsoft lags in AI because it lacks its own chips or foundation model.
"They are not as advanced in that as AWS and Google, so they're still playing a little bit of catchup in that space," Gold said of Microsoft.
Google Cloud's revenue growth is on pace to overtake Microsoft's Azure for second place in the market in two years, the analyst said.
juj-gc/arp/bbk/mlm
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Android Authority
26 minutes ago
- Android Authority
The main issue with Windows handhelds is Windows, but the Xbox ROG Ally tries to fix that
TL;DR Microsoft has announced the Xbox ROG Ally and Xbox ROG Ally X handhelds, coming this holiday season. These Windows handhelds boot directly into a controller-friendly UI and feature an Xbox button to summon the Game Bar overlay. Microsoft has also turned off various Windows elements in the name of gaming performance. We've heard for a while now that Microsoft and ASUS were working together on an Xbox-branded ROG Ally handheld. Now, the companies have indeed announced the Xbox ROG Ally and ROG Ally X devices. These machines aren't actually handheld Xbox consoles, as they're still running Windows 11. However, Microsoft says it's made plenty of changes to the software experience. This is good news, as the UI and software experience have long been the biggest issues with Windows-based handhelds. Major software changes For starters, Microsoft says the Xbox ROG Ally handhelds will boot directly into the 'Xbox full screen experience' for a more intuitive and efficient handheld environment. 'With new modifications that minimize background activity and defer non-essential tasks, more system resources are dedicated specifically to gameplay,' Microsoft added. A Microsoft executive told The Verge that it managed to claw back 2GB of RAM by turning off the desktop wallpaper, taskbar, and a 'bunch' of other Windows processes. However, users can still jump into the traditional Windows environment if they'd like to do so. These handhelds also offer an Xbox button to summon the Game Bar overlay, which includes ASUS Armory Crate integration. Finally, Microsoft notes that it's also optimized the lock screen and task switcher for controller input (better late than never, I guess). Otherwise, you can still access other stores on the device, including Steam. Xbox ROG Ally: What about hardware? The two Xbox ROG Ally models share several features, namely a 7-inch 120Hz IPS LCD screen (1080p, Gorilla Glass Victus), microSD expansion, M.2 2280 SSDs that can be swapped out, Bluetooth 5.4, Wi-Fi 6E, and 65W charging. The standard Xbox ROG Ally has an AMD Ryzen Z2 A processor, a 60Wh battery (up from 40Wh in the original Ally), 16GB of RAM, 512GB of internal storage, and two USB-C ports (USB 3.2 Gen 2 with DisplayPort 2.1). However, the Xbox ROG Ally X model ups the ante with an AMD Ryzen Z2 Extreme chip (an upgrade from the vanilla ASUS ROG Ally X), an 80Wh battery, 24GB of RAM, 1TB of internal storage, and a USB-C port (USB 4.0 with Thunderbolt 4 compatibility). Interestingly, ASUS claims that playing in Silent Mode on the Xbox ROG Ally X will 'feel like' playing in Performance Mode on the previous Ally X while still offering more battery life. Unfortunately, the company isn't dishing out specific battery life figures just yet. Microsoft and ASUS haven't revealed pricing just yet, either, while only confirming that the handhelds will be available this holiday season. Expect to find the Xbox ROG Ally line in a variety of markets, including Australia, Europe, Japan, the Middle East, the UK, and the US. However, Microsoft adds that the handhelds will eventually be available in other markets where ROG Ally models are already sold. Got a tip? Talk to us! Email our staff at Email our staff at news@ . You can stay anonymous or get credit for the info, it's your choice.
37 minutes ago
Apple heads into annual showcase reeling from AI missteps, tech upheaval and Trump's trade war
After stumbling out of the starting gate in Big Tech's pivotal race to capitalize on artificial intelligence, Apple will try to regain its footing Monday at its annual Worldwide Developers Conference. The presummer rite, which attracts thousands of developers to Apple's Silicon Valley headquarters, is expected to be more subdued than the feverish anticipation that surrounded the event during the previous two years. In 2023, Apple unveiled a mixed-reality headset that has been little more than a niche product, and last year WWDC trumpeted its first major foray into the AI craze with an array of new features highlighted by the promise of a smarter and more versatile version of its virtual assistant, Siri. But heading into this year's showcase, Apple faces nagging questions about whether the nearly 50-year-old company has lost some of the mystique and innovative drive that turned it into a tech trendsetter. Instead of making a big splash as it did with the Vision Pro headset, Apple this year is expected to focus on an overhaul of its software that may include a new, more tactile look for the iPhone's native apps and a new nomenclature for identifying its operating system updates. Even though it might look like Apple is becoming a technological laggard, Forrester Research analyst Thomas Husson contends the company still has ample time to catch up in an AI race that's 'more of a marathon, than a sprint. It will force Apple to evolve its operating systems.' If reports about its iOS naming scheme pan out, Apple will switch to a method that automakers have used to telegraph their latest car models by linking them to the year after they first arrive at dealerships. That would mean the next version of the iPhone operating system due out this autumn will be known as iOS 26 instead of iOS 19 — as it would be under the current sequential naming approach. Whatever it's named, the next iOS will likely be released as a free update in September, around the same time as the next iPhone models if Apple follows its usual road map. Meanwhile, Apple's references to AI may be less frequent than last year when the technology was the main attraction. While some of the new AI tricks compatible with the latest iPhones began rolling out late last year as part of free software updates, Apple still hasn't been able to soup up Siri in the ways that it touted at last year's conference. The delays became so glaring that a chastened Apple retreated from promoting Siri in its AI marketing campaigns earlier this year. 'It's just taking a bit longer than we thought,' Apple CEO Tim Cook told analysts last month when asked about the company's headaches with Siri. 'But we are making progress, and we're extremely excited to get the more personal Siri features out there.' While Apple has been struggling to make AI that meets its standards, the gap separating it from other tech powerhouses is widening. Google keeps packing more AI into its Pixel smartphone lineup while introducing more of the technology into its search engine to dramatically change the way it works. Samsung, Apple's biggest smartphone rival, is also leaning heavily into AI. Meanwhile, ChatGPT recently struck a deal that will bring former Apple design guru Jony Ive into the fold to work on a new device expected to compete against the iPhone. 'While much of WWDC will be about what the next great thing is for the iPhone, the unspoken question is: What's the next great thing after the iPhone?' said Dipanjan Chatterjee, another analyst for Forrester Research. Besides facing innovation challenges, Apple also faces regulatory threats that could siphon away billions of dollars in revenue that help finance its research and development. A federal judge is currently weighing whether proposed countermeasures to Google's illegal monopoly in search should include a ban on long-running deals worth $20 billion annually to Apple while another federal judge recently banned the company from collecting commission on in-app transactions processed outside its once-exclusive payment system. On top of all that, Apple has been caught in the cross-hairs of President Donald Trump's trade war with China, a key manufacturing hub for the Cupertino, California, company. Cook successfully persuaded Trump to exempt the iPhone from tariffs during the president's first administration, but he has had less success during Trump's second term, which seems more determined to prod Apple to make its products in the U.S.. 'The trade war and uncertainty linked to the tariff policy is of much more concern today for Apple's business than the perception that Apple is lagging behind on AI innovation,' Husson said. The multi-dimensional gauntlet facing Apple is spooking investors, causing the company's stock price to plunge by nearly 20% so far this year — a decline that has erased $750 billion in shareholder wealth. After beginning the year as the most valuable company in the world, Apple now ranks third behind longtime rival Microsoft, another AI leader, and AI chipmaker Nvidia.
Tom's Guide
an hour ago
- Tom's Guide
I challenged Gemini Live vs ChatGPT in 5 voice challenges — there was one clear winner
AI assistants are constantly becoming smarter, faster and gaining new abilities. Now, they can see, speak, listen and even crack a few jokes with you when you need a favorite chatbots offering hands-free assistance are ChatGPT with Voice and Vision and Google's Gemini Live. I use them both regularly and interchangeably, but one thing I haven't done is test them against each other. So, I just had to know, which assistant is better to the point it actually feels the most human? To find out, I put both tools through five unique voice-based tests designed to push their limits. These were not your average 'What's the weather?' prompts. I challenged them to recall context, analyze images, collaborate creatively and even roleplay with personality. One emerged as the clear winner, and in this article I'll show you why. Prompt: 'My name is Amanda and I'm planning a trip to Boston with my family of five. What should we do first?" Later: "Remind me what I said my name was earlier?'Gemini Live quickly asked for more information to ensure it gave me the best information. It asked the ages of my kids and what types of activities we prefer as a family. It made some very general recommendations that I could have gotten anywhere, but still information. The chatbot remembered my name when I asked it to recall immediately made some general family-friendly recommendations (similar to what Gemini gave after asking me more about myself) and then asked me about my family's preferences. From there, it offered more unique and engaging activities that were both on and off the typical tourist path. The chatbot remembered my name when asked to recall ChatGPT wins for out-of-the-box recommendations that I hadn't thought of (and I'm from Boston). It was very helpful with both unique and interesting ideas for my active family of five. Prompt: 'Explain the potential societal impacts of widespread AI companions.'Gemini Live acknowledged positive aspects but remained very general and lacked specific societal consequences. Although the chatbot did mention both sides, without elaborating, the response was somewhat empty and less went beyond vague statements and provided concrete examples of both positive and negative impacts. The chatbot's conclusion emphasized the need for balance. Although ChatGPT responded clearly and thoroughly, the chatbot is very sensitive. At one point during the conversation I put the phone down and it stumbled, asking, 'What else can I help with?' When I asked the bot to keep going, it was confused so I had to re-ask the question, which felt less ChatGPT wins for a more thorough and balanced response to the question. While it stumbled with some technicalities, the answer to the prompt was superior. Gemini ended the conversation with "worth thinking about," which seemed less insightful. Prompt: "Sell me a maple pecan latte like a Gen Z barista, adding in humor naturally."Gemini Live leaned into the Gen Z character with fun lines that felt both natural and effortless. It wasn't as verbose as ChatGPT, which made it feel more human and delivered a lengthy sales speech that made me cringe. It didn't get the Gen Z tone as well as Gemini and the whole response felt a little too polished and buttoned Gemini Live wins this one. This was where Gemini shined. Its energetic voice delivery and personality were spot-on as it leaned into the character with ease. Prompt: 'Take a look at these old bananas and give me suggestions for what to do with them.'Gemini Live took one look at the bananas and immediately suggested banana bread. A good option, but an obvious one. When pressed for something different, it suggested smoothies. I told it I didn't have a lot of extra ingredients and it hallucinated saying, 'that's okay, how about a smoothie?' Once again, I told it I didn't have any other ingredients. Finally it suggested making banana ice also suggested banana bread but in the form of 'banking' with other ideas mixed in. It went further to suggest smoothies. When I mentioned I didn't have any other ingredients, it suggested blending with ice and water for a 'refreshing drink.' Additionally, it suggested more pantry-friendly ingredients like honey, cinnamon and vanilla that I was more likely to have on hand (as apposed to Gemini suggesting various fruits, seaweed or kale).Winner: ChatGPT wins this round with a clear edge for true multimodal communication with creativity and visual intelligence. Prompt: "Help me brainstorm a bedtime jingle for my kids and sing it if you can." Gemini Live went line by line of the song for a more collaborative experience. It was asking me about instruments and themes as well as styles. While it was nice to be included, any parent trying to get their kid to sleep at bedtime just wants something fast. I would appreciate this collaborative effort if I needed the song in a different created a sweet lullaby in minutes – and even sang it! The song was creative and well written even though the bot's voice was a little too robotic. I then asked it for different lyrics and for it to sing it in other styles and it got straight to work even rapping it like Kendrick Lamar (that is, if Lamar were a bot).Winner: tie. Both tools came up with catchy rhymes and fun ideas. ChatGPT took the lead in structure while Gemini felt a little looser, more like spit balling with a friend — which was charming, but less directed. After putting both AI assistants through their paces, it's clear that ChatGPT currently offers the more advanced and well-rounded experience. From deeper reasoning and sharper memory to stronger visual analysis and quicker creative execution, ChatGPT consistently delivered results that felt more helpful and said, Gemini had standout moments, especially in personality-driven prompts where it came across as more spontaneous and fun. If you're looking for an assistant to make you smile and keep the vibe light, Gemini shines. But if you want the most capable hands-free AI companion that can think deeply, see clearly and even sing (or rap!) on command — ChatGPT is still the one to beat.
