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Microsoft has confirmed that its Copilot AI assistant is experiencing degraded service, with many users receiving error messages instead of answers to their prompts. The company says it has traced the problem to a specific API endpoint and is reviewing diagnostics to find the root cause.
Microsoft will hold a San Francisco event on October 7, its first major Windows-focused gathering in over two years, to outline upcoming plans for Windows, Surface hardware, and local AI computing. CEO Satya Nadella and Windows/Surface chief Pavan Davuluri will appear alongside Nvidia CEO Jensen Huang, pointing to deeper collaboration on AI-capable PCs. The event is expected to bring updates on the Surface Laptop Ultra, a device built on Nvidia's RTX Spark platform with up to 128GB of unified memory.
Microsoft's Copilot, born from its OpenAI partnership after ChatGPT's 2022 debut, has evolved from Bing Chat and Cortana into an umbrella brand covering AI features in Windows, Edge, Office apps, Teams, GitHub and security tools. In August 2026 Microsoft merged its personal and work AI apps, renaming Microsoft 365 Copilot simply Copilot, with functionality varying by account and subscription. The branding also extends to hardware through Copilot Plus PCs and dedicated Copilot keys on keyboards.
Microsoft confirmed it is still investigating why Copilot and Copilot Chat buttons vanish from classic Outlook for Windows after upgrading to build 20026.20182 or later. The issue affects users with Copilot Chat Basic or M365 Copilot Premium licenses, blocking access to Copilot from the ribbon, app bar, or Add Apps menu.
Microsoft has updated its Copilot iPhone app to support Apple CarPlay, requiring iOS 26.4 or later and a subscription to function. The voice-driven integration mirrors chat history from the phone app, including text-based conversations, and joins Siri AI, ChatGPT, Perplexity, Grok, Meta AI and Claude as chatbot options available in CarPlay.
A new open-source project called Algo-Trading-Skills packages 501 reference implementations covering algorithmic trading engineering, spanning 16 technical domains and five regulatory/exchange frameworks. Each skill is backed by unit tests (over 20,000 total) and follows the agentskills.io SKILL.md standard, making it usable by Claude Code, GitHub Copilot, Codex CLI, Cursor, Gemini CLI, and similar tools. It's released under Apache 2.0 and explicitly framed as engineering guidance, not financial or compliance advice.
Microsoft is expanding GitHub Copilot's coding agent to manage more of the software development pipeline, including setting up Windows development environments, running linters and tests, and opening pull requests for human review. GitHub also added agent support for Windows Subsystem for Linux, helping teams that build on Windows but test or deploy on Linux. Microsoft Distinguished Engineer David Fowler said on X that 'typing code is absolutely over,' pointing to a shift in what developers actually spend time doing.
Microsoft has launched Project Zenith, a stripped-down version of Windows 11 aimed at AI developers, requiring at least 64GB of unified memory and 250GB/s memory bandwidth. It will debut on AMD's Ryzen AI Halo hardware, a rival to Nvidia's DGX Spark, before expanding to other OEM devices, and ships preloaded with tools like VS Code, GitHub Copilot, Python, WSL, and .NET 10 already configured for coding.
Microsoft and hardware partners will sell high-end PCs later this year running Windows 11 Pro pre-configured under a program called Project Zenith, which tweaks default settings to reduce clutter and bundles tools like Visual Studio Code, GitHub Copilot, PowerToys and Windows Dev Skills. These machines require at least 64GB of unified memory and 250 GB/s of bandwidth to run local 30-billion-parameter AI models, with AMD Ryzen AI Halo devices launching first.
GitHub has launched Project HydraFusion, a research preview available through the /experimental flag in GitHub Copilot CLI. Instead of picking one model, HydraFusion builds an execution plan that draws on multiple AI models from different providers, using them to draft, critique, revise, or escalate tasks to stronger models as needed. Developers select it like any other model, and it automatically manages the underlying workflow while charging standard per-model token rates.
Microsoft submitted 8.2 million Copilot chat logs as part of discovery in copyright suits from The New York Times, the Center for Investigative Reporting, and book authors. The company says only 59,545 logs shared at least 16 words with plaintiffs' news content, with far fewer showing substantial text overlap, and just 10 of 212 books evaluated had any matching passages.
Microsoft has branded its developer-optimized Windows configuration Project Zenith, targeting new devices with 64GB or more of unified memory. AMD introduced the first such device at IFA, a compact PC built on Ryzen AI Halo chips, with more machines using other silicon expected in coming months.