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Apple released Xcode 27.3 beta 1, which adds GitHub Copilot as a supported AI model within the app's built-in coding assistant. This follows earlier integrations of ChatGPT, Claude, Codex, Claude Agent, and Google Gemini across recent Xcode versions. The beta also ships with Swift 6.4 and SDKs for iOS, iPadOS, tvOS, watchOS, macOS, and visionOS 27.3.
At a Windows and Surface event, Microsoft outlined plans to bring AI agents and 'hybrid intelligence' to Windows 11, letting the OS run free local AI models alongside cloud-based ones. CEO Satya Nadella described a shift in the 'frontier ecosystem,' while Windows chief Pavan Davuluri demoed local AI coding tools, new local model support, and agents including OpenClaw, Hermes and Perplexity integrated with Copilot.
Meta and Microsoft have begun restricting their employees' access to Anthropic’s Claude AI, shifting focus toward developing and deploying their own AI solutions. Microsoft has reduced its internal AI spending limits from $100,000 to about $10,000 per employee, while still maintaining client-facing AI services that utilize Claude. Despite internal cuts, both companies continue to see rising client expenditures on Anthropic’s models through their platforms.
Microsoft has revealed a major redesign of its business-facing Copilot tools, which CEO Satya Nadella describes as a 'new OS for work.' The suite includes Home, which can draft and edit Office files; Code, which builds apps from natural-language prompts using GitHub Copilot's engine; and Autopilot, a rebrand of Scout that autonomously handles tasks like scheduling and follow-ups across Teams, Outlook and other apps. Home and Code enter Microsoft's Frontier testing program in coming weeks, with Autopilot reaching private preview by month's end.
Microsoft is overhauling Copilot with a redesigned structure divided into three areas: Home for organizing meetings, documents, emails and agents; Code for building apps and vibe coding; and Autopilot, a rebranded version of Scout that acts as a semi-autonomous digital teammate. The update rolls out first through Microsoft's Frontier Program for businesses and individual subscribers, with a new Copilot Managed Runtime letting enterprises host generated code within their own Microsoft 365 environment.
Microsoft has released a redesigned Copilot app that merges chat, coding tools, and AI agents into three tabs: Home, Code, and Autopilot. Home combines Copilot Chat and Cowork with a new personalized dashboard called Today, while Code lets users build apps and automations powered by GitHub Copilot's technology. Microsoft also renamed its Scout personal assistant, first shown at Build, to Autopilot, now framed as a cloud-based 'digital teammate' that can keep working autonomously.
Microsoft used AI agents to convert the Copilot runtime's 430,000 lines of TypeScript into 800,000 lines of Rust, a project that took about 14.5 weeks, over 135 releases, roughly $120,000 in AI token costs, and three weeks of human developer oversight to fix dozens of regressions. The Rust version now powers Copilot across VS Code, Visual Studio, the CLI, SDK, and Office apps like Excel and Outlook.
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.