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Inside Microsoft Build 2025: AI revolution meets corporate chaos

The hosts broadcast live from Microsoft Build 2025 in Seattle to discuss groundbreaking AI news.

The Wild Reality of Microsoft Build 2025: Beyond the Keynote Glitz

This week’s Windows Weekly delivered an inside look at Microsoft Build 2025, with hosts Paul Thurrott and Richard Campbell broadcasting live from Seattle amidst what can only be described as one of the most chaotic developer conferences in recent memory. While the official narrative focused on groundbreaking AI announcements, the reality on the ground painted a far more complex picture of a company at an inflection point.

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When Developer Conferences Become Battlegrounds

The show opened with a startling revelation: Build 2025 wasn’t just about code and cloud services. The conference had transformed into a heavily secured fortress, complete with tactical police units and multiple security checkpoints. Paul and Richard described scenes more reminiscent of a political summit than a tech gathering, with protesters attempting to storm the stage during keynotes and creative disruptions involving balloon banners floating through the convention center atrium.

The hosts revealed that while media coverage suggested only a handful of interruptions, the reality was closer to 25-30 separate protest incidents throughout the conference. Most remarkably, many of these disruptions never made it to social media or news outlets, creating an eerie disconnect between the attendee experience and public perception.

The Shadow of 6,000 Layoffs

Perhaps the most sobering discussion centered on Microsoft’s recent elimination of 6,000 positions across all divisions. Richard and Paul painted a picture of a demoralized workforce, sharing particularly brutal stories of employees being notified of their termination while traveling to industry events. The Python team lead discovered his fate en route to PyCon, while entire booth crews designated for Build simply vanished.

What made these cuts especially unsettling was their apparent randomness. Unlike previous rounds that targeted underperformers with advance warning, this wave seemed to follow no discernible pattern. Veterans with stellar records found themselves out alongside recent hires, creating what the hosts described as a pervasive atmosphere of fear throughout the company. The timing—immediately following record quarterly earnings—only added to the sense of corporate disconnect.

AI Takes Center Stage (Literally)

Despite the chaos, Build’s technical content delivered genuinely impressive demonstrations. The highlight came during a live chemistry demo where Microsoft’s AI system ingested scientific papers, generated potential molecular compounds for a cooling solution without harmful PFAS chemicals, tested them virtually, and then actually created the winning formula on stage. An Xbox motherboard was subsequently submerged in this newly invented liquid, running Forza without overheating.

Paul’s excitement was palpable as he described this as a perfect showcase of agentic AI—not just answering questions, but actively solving complex problems by orchestrating multiple AI agents working in concert. The demonstration crystallized Microsoft’s vision of AI that doesn’t just chat but actively accomplishes tasks.

The Open Source Surprise That Wasn’t

The announcement that GitHub Copilot would be open-sourced and integrated directly into Visual Studio Code sparked a fascinating debate between the hosts. While presented as a developer-friendly move, Paul and Richard quickly identified the defensive strategy at play. With competitors like Cursor (built on VS Code’s own foundation) gaining traction, Microsoft’s decision to bake Copilot directly into the editor seemed less about openness and more about protecting market share.

Richard pointed out the irony: Microsoft would simultaneously integrate their AI into their editor while pushing GitHub Copilot to competing IDEs like JetBrains and even Apple’s Xcode. This two-pronged approach—lock in your own platform while infiltrating others—exemplified what Paul called “straight-up hypocritical” behavior, though both agreed it made business sense.

Strange Bedfellows: Musk and Altman Share the Spotlight

In perhaps the most politically charged moment of Build, Microsoft featured video appearances from both Elon Musk and Sam Altman—two billionaires currently engaged in bitter legal battles over the future of AI. The hosts interpreted this as a calculated message to multiple audiences: the U.S. government, the developer community, and the AI industry at large.

By platforming both feuding parties, Microsoft signaled its intention to remain the Switzerland of AI infrastructure. With over 1,900 models now available in Azure AI Foundry, the company positioned itself as the indispensable platform where all AI development happens, regardless of corporate allegiances or legal disputes.

Windows Gets Its AI Moment

The conference also marked a significant shift in Windows’ role within Microsoft’s ecosystem. After years of being sidelined in favor of cloud services, Windows returned to prominence as the client platform for local AI execution. The rebranding of Windows Copilot Runtime to Windows AI Foundry might seem like typical Microsoft naming chaos, but it represented a crucial strategic alignment with Azure’s AI infrastructure.

Paul emphasized how this local AI processing capability could be game-changing for privacy-conscious users and enterprises. The ability to run sophisticated AI models without sending data to the cloud addresses one of the primary concerns holding back AI adoption in sensitive industries.

The Developer Experience in Flux

Throughout the episode, a recurring theme emerged: Microsoft’s seemingly scattershot approach to developer tools and platforms. The deprecation of Dev Home after barely two years, with its features being absorbed into various parts of Windows, exemplified what Richard characterized as a company moving too fast for its own good.

The hosts noted how desired state configuration capabilities were moving to WinGet, advanced settings were being integrated into the Settings app, and various developer-focused features were being redistributed across the operating system. While each individual move might make sense, the constant churn created frustration for developers trying to build on stable foundations.

Looking Forward: ARM and Gaming Convergence

One of the most intriguing revelations came from a Qualcomm job listing explicitly mentioning next-generation Xbox and Surface products built on Snapdragon processors. This confirmed long-standing speculation about Microsoft’s intentions to unify its gaming and productivity platforms on ARM architecture.

The implications are substantial: imagine Xbox games running natively on ARM-powered Surface devices, or gaming laptops with all-day battery life. Paul and Richard discussed how this convergence could finally deliver on Microsoft’s long-promised vision of gaming everywhere, though they acknowledged the massive technical challenges in porting the existing game library.

The Human Cost of Innovation

What made this episode of Windows Weekly particularly compelling was how Paul and Richard refused to separate the technical achievements from their human context. The juxtaposition of groundbreaking AI demos against the backdrop of security lockdowns and fearful employees created a narrative tension that official Microsoft communications carefully avoided.

The hosts’ firsthand accounts—from Paul’s 45-minute odyssey trying to enter the convention center to Richard’s observations about empty campus buildings and half-completed construction projects—painted a picture of a company simultaneously at the height of its power and deeply uncertain about its future direction.

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This content was originally published on Twit.tv and republished here under a Creative Commons 4.0 license. Learn more about third-party content on Zany Progressive.

Tech news show focusing on Microsoft. Hosted by Leo Laporte, Paul Thurrott, Richard Campbell.

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