Microsoft Paint embeds an invisible, server-issued GUID watermark in images generated locally through its Cocreator feature on Copilot+ PCs. Before local NPU-based Stable Diffusion inference begins, Paint sends the prompt and style to a Microsoft Azure moderation endpoint. The response includes a revised prompt, a promptGenerationId, a watermarkId, and a human-reference classification. Paint encodes the 16-byte watermarkId into image pixels through Watermarker.dll; generation fails if that watermarking step fails. The watermark encoder requires images at least 192 by 192 pixels and converts the GUID into a 144-bit payload with a prefix and checksum. Paint also sends the generated image and promptGenerationId to an online signing service, which returns a signed C2PA Content Credentials manifest. Testing found that the manifest’s Microsoft InvisMark soft-binding value matched the GUID embedded in the image pixels. Paint limits AI-generated image saves to C2PA-preserving PNG, JPEG, GIF, and .paint formats. Microsoft Photos includes the same Watermarker.dll for locally generated Image Creator and Restyle Image results, although its code appears to return an image even when watermarking fails. Microsoft discloses remote content filtering and C2PA manifests, but the research found no Microsoft disclosure describing the prompt-moderation-issued GUID or its embedding in pixels.

Microsoft generated $24.1 billion in AI revenue from OpenAI for the year ending in June. CEO Satya Nadella indicated the company is on track to achieve $37 billion in AI revenue for the full year.

Microsoft has removed references to 32 GB of RAM as a recommendation for Windows 11 from its documentation. The company now promotes 8 GB devices as sufficient for optimal performance with Windows 11.

Microsoft product teams and the Microsoft Security Response Center (MSRC) collaborated on a technical analysis of vulnerabilities related to AI in Microsoft Word. The findings reveal potential security risks associated with AI integration in word processing software.

A Windows XP nostalgia emulator allows users to relive the experience of the 2005 operating system. The emulator features a user interface resembling Windows XP, complete with access to programs and settings.

On July 16, members of Extinction Rebellion targeted a Microsoft data center construction site in Amsterdam. They attempted to weaken the concrete foundations by applying a mixture of hydrogen peroxide, acetic acid, salt, and acrylic.

Microsoft Comic Chat is now open source and available on GitHub. This chat client transforms IRC conversations into comic panels with illustrated characters and speech bubbles, and it popularized the Comic Sans font.

Microsoft released software updates to address 570 security vulnerabilities in its Windows operating systems and other software. Nearly 60 of these vulnerabilities were rated as "critical," with the increased patch count attributed to vulnerability discoveries supported by artificial intelligence.

Microsoft's Global Device Identifier (GDID) is generated, stored, and transmitted as a persistent fingerprint for Windows devices. Even when not logged in with a Microsoft Account (MSA), a GDID is still assigned, utilizing an anonymous device path for identification.

A researcher claims that Microsoft's advancements in quantum computing are flawed due to fundamental Python errors in their methodology. Microsoft defends its findings, asserting that the research is valid and sound.