Security teams log 54% of successful attacks and alert on just 14%. The rest move through your environment unseen.
The Picus whitepaper shows how breach and attack simulation tests your SIEM and EDR rules so threats stop slipping by detection.
Animation in 4K is its own unique experience. The format’s exceptional clarity and expanded color palette can elevate the beauty and wonder of stories too out-there for live action. Ultra HD can occasionally expose the limitations of the medium, including choppy legacy line art, but it ultimately remains a definitive showcase for the art form. By unlocking explosive HDR highlights and a wider color gamut, 4K discs can breathe new life into both classic hand-drawn animation and state-of-the-art digital work, freeing vintage hues from past technical constraints. Today’s filmmakers, meanwhile, exploit these advances with an impact that was once impossible to achieve at home.
Five recent disc releases remind us exactly what the format can do. All feature native 4K presentations. Four include Dolby Vision, while one relies entirely on standard dynamic range to make its case.

Video game adaptations have come a long way from their misguided baby steps, as evidenced by both live-action entries such as A Minecraft Movie and Illumination’s animated take on the Mario universe. This even glossier follow-up to 2023’s The Super Mario Bros. Movie expands an already impressive core cast of Chris Pratt, Anya Taylor-Joy, and Jack Black with Brie Larson, Benny Safdie, and Glen Powell for a spectacular rescue mission that takes the gang across the cosmos.
Visually, though, Galaxy pushes the envelope by shifting the action from the sunny Mushroom Kingdom to the dark reaches of outer space, requiring a completely different lighting approach. Glowing Lumas and floating Star Bits cast vibrant colors across the characters and environments, while specular highlights on the slick metal spaceships create sharp reflections that give the animation an advanced sheen. Individual threads and weave patterns are visible on costumes, the backgrounds boast a massive jump in rendering complexity, and motion blur remains tightly controlled, like a next-generation game engine running at maximum capacity.
The Dolby Atmos mix uses discrete steering and aggressive height-channel placement to pan spaceships and debris effortlessly around the room. This hyperkinetic soundfield is anchored by authoritative, subwoofer-testing low end and a massive orchestral score that spreads wide into the surrounds, all while keeping dialogue pristine. There are a few basic extras, but skip them and just rewatch the movie in awe.
★★★★★★★★★★ Movie
★★★★★★★★★★ Picture
★★★★★★★★★★ Sound
★★★★★★★★★★ Extras

Shifting from the newest to the oldest movie in this batch, Walt Disney’s 1951 adaptation combines elements from both Lewis Carroll’s Alice’s Adventures in Wonderland and its sequel, Through the Looking-Glass, and What Alice Found There. While British purists complained that the sacred texts had been dumbed down, prudish Americans, surprisingly, did not object to the druggish undertones inherent in the eccentric characters and wild scenarios. In fact, they largely ignored Alice. The movie sat in the vault until the psychedelic era brought renewed interest, leading to a full theatrical re-release in 1974. It has been beloved ever since.
Timed to the film’s 75th anniversary, Walt Disney Film Restoration spent nine months restoring Alice, beginning with scans of the original nitrate successive-exposure negatives and preserving the proper 1.37:1 aspect ratio. This work was followed by extensive cleanup to address dust, warping, and other signs of age, with archival production artwork used as a reference to optimize color and luminance in every shot. Walt & Co.’s cheerier tone is reflected in an explosively vibrant palette, with pinks and blues that pop off the screen so intensely that viewers may begin to question what is real.
Alongside a lossy two-channel mono track, the disc includes a DTS-HD Master Audio 5.1 remix that feels modern while remaining faithful to the original, with particularly strong fidelity in the songs. All of the extras are housed on the bundled HD Blu-ray, including an excellent picture-in-picture mode and a deep selection of vintage and retrospective programs, along with behind-the-scenes material.
★★★★★★★★★★ Movie
★★★★★★★★★★ Picture
★★★★★★★★★★ Sound
★★★★★★★★★★ Extras

Two titans joined forces for a once-in-a-lifetime collaboration when the singular fantasy artist Frank Frazetta teamed with celebrated animator Ralph Bakshi to create the original screen adventure, Fire and Ice. In a savage prehistoric world, the buff warrior Larn and mysterious masked avenger Darkwolf embark on a perilous quest to rescue Princess Teegra from the evil ice lord Nekron, whose advancing glaciers threaten to consume the world.
To capture the look of a Frazetta painting brought to life while maintaining realistic anatomy, Bakshi relied on rotoscoping, a process pioneered by Max Fleischer decades earlier. Live-action performers were filmed, then each frame was painstakingly traced and painted. The backgrounds, meanwhile, were largely created by a young Thomas Kinkade, whose name was misspelled in the credits. Long before becoming “The Painter of Light” and the head of a multimillion-dollar art empire, Kinkade experimented here with a luministic, chiaroscuro style that draws the eye through small bursts of light and color. His brushstrokes and the texture of the line art are fully preserved in the 4K, 16-bit scan, while the occasional static foreground “fog” adds depth to the main action.
The new Atmos reconfiguration is remarkably strong, with fluid placement of effects across the soundfield: arrows zip past pterodactyls, swords land with heavy clangs, and the mix builds on Blue Underground’s previous 6.1 and 7.1 remixes. The original stereo track is also included, along with 5.1 audio, all in DTS-HD Master Audio. William Kraft’s score adds a visceral, primal pulse and is included here on a 70-minute, 21-track CD.
New featurettes spotlight Frazetta’s granddaughter, Sara Frazetta, and superfan filmmaker Robert Rodriguez, alongside a strong collection of legacy content that includes a Bakshi audio commentary. The SteelBook packaging is especially elegant: a clear plastic slip carries the title and logos on the front, with the usual disc information on the back. Remove it, and Frank Frazetta’s poster art is left unobstructed, with animation art displayed on the reverse.
★★★★★★★★★★ Movie
★★★★★★★★★★ Picture
★★★★★★★★★★ Sound
★★★★★★★★★★ Extras

Perfect Blue is smart and sophisticated enough to have worked as a live-action psychological thriller, and in fact it almost was before first-time director Satoshi Kon turned it into one of the most influential anime films ever made. The story follows young Mima’s transition from pop idol to aspiring television actress, a journey filled with unexpected hurdles that soon leads her down a dark path where she begins to question her own sanity. This unrated cut can get rough, with murder, sexual violence, and a stalker all driving the story toward a major twist that I did not see coming.
Although it was originally greenlit as a modest direct-to-video release, the production quality far exceeds the assignment. The hand-drawn, hand-painted artwork delivers nuanced characters and richly detailed backgrounds, particularly in its Tokyo cityscapes. Kon’s masterful camerawork, lingering film grain, and occasional dirt combine to create a genuinely cinematic feel, capturing a twilight moment just before the industry shifted more decisively toward digital cel animation.
The 5.1 track is unlike any other mix in this lineup: punchy, aggressive, and full of discrete left and right cues, with hard surround activity that makes unapologetic use of the rear channels. Dialogue remains consistently crisp, although I cannot claim to understand more than a handful of Japanese phrases.
A more affordable, though still premium, alternative to last year’s collector’s edition, Shout!’s SteelBook arrives across three discs, with much of the bonus material presented in standard definition. The highlight is a series of Satoshi Kon lectures totaling roughly two hours, with English subtitles, in which he digs deeply into possible interpretations of the labyrinthine narrative, along with the film’s themes and techniques.
★★★★★★★★★★ Movie
★★★★★★★★★★ Picture
★★★★★★★★★★ Sound
★★★★★★★★★★ Extras

One of Pixar’s better efforts of late, Hoppers takes audiences into the animal kingdom in a whole new way. Animal-loving college student Mabel uses hush-hush technology to “hop” her consciousness into a lifelike robotic beaver body and live among the creatures of the forest. They can understand her, and she can understand them, though neither side quite knows what to make of the other. But when her passion to protect wildlife at all costs gets the better of her, she is in for a hard lesson about the real laws of nature. It is funny, there is ample cuteness afoot, and the environmental message lands without becoming obnoxious as Mabel learns that complicated problems do not always have simple answers. You know, the usual Pixar existential crisis, but with beavers.
Remember when rendering fur and feathers was a big deal? Hoppers makes it look easy, with an exceptionally clear, detailed image that takes a step beyond realism through a playful visual style that pleases the eye without straining for ultimate photorealism. Woodland colors are lush and lovely, as only Dolby Vision can deliver. Note that the 4K disc is a SteelBook-only release.
There is plenty of 360-degree and overhead audio action from the abundant creatures of air and land, along with no shortage of manmade mayhem, all underscored by serious bass kick. The hopper equipment itself features thoughtful sound design that conveys the transfer into the synthetic body, then reinforces it with subtle mechanical accents. The supplements are wholly adequate, covering the creative team’s character research, a brisk making-of featurette, a study of a key scene, plus bloopers and deleted scenes.
★★★★★★★★★★ Movie
★★★★★★★★★★ Picture
★★★★★★★★★★ Sound
★★★★★★★★★★ Extras
A hot potato: The developer behind popular Windows optimization tool Wintoys has uncovered a sophisticated cybercrime operation that mimics dozens of popular Windows apps through duplicate websites built to look uncannily like the real thing. The fraudulent sites reportedly distribute malware capable of compromising user privacy, hijacking account credentials, and draining crypto wallets.
The developer, who goes by the handle Bogdan_X, told Windows Latest that his research began after he spotted a fake website mimicking the official Wintoys page. Tracing the site’s registration led him to 72 fraudulent websites built on the same playbook, several of which use URLs deliberately close to the real domains they’re impersonating.
Shameless plug: it’s exactly this kind of scheme that makes vetted download sources worth the extra click. Every installer in TechSpot’s Downloads section is pulled straight from the developer, scanned for malware, and kept free of bundled junk under our clean-downloads policy, so you’re not left guessing whether an “official” link actually leads where it says it does.
A broader version of this scheme was mapped in detail last month by cybersecurity firm Check Point Research, which found that the fake sites work to rank highly on Google and other search engines for searches tied to popular Windows software, then use that trust to push malware once traffic starts flowing. It’s not yet confirmed whether the same operator is behind both the Wintoys-focused cluster and the wider set Check Point tracked, or whether separate groups are simply running the same playbook.

In the early stages, the sites link to legitimate downloads. Once a site gains traction, though, operators quietly swap those real links out for fraudulent ones. Many of these fraudulent domains are registered to the same owner and even reference genuine upstream resources, like real GitHub repositories, making them harder to tell apart from the legitimate projects they’re copying.
Some of the sites load a JavaScript staging layer via Amazon CloudFront that intercepts clicks on Download buttons and reroutes the connection through a Traffic Distribution System (TDS). The TDS then sends users to either malware-hosting infrastructure or legitimate resources, depending on their location, browser type, and other signals.

Apart from Wintoys, other popular Windows programs being impersonated this way include PowerToys, CrystalDiskMark, EasyBCD, Lively Wallpaper, and more. Check Point’s own mapping of the wider ecosystem also turned up cloned pages for security and research tools such as Ghidra, dnSpy, and SpiderFoot, a reminder that even power users aren’t immune to fraudulent apps and websites.
Check Point’s researchers tied the infrastructure to several malware families. SessionGate, an obfuscated multi-stage loader with heavy anti-analysis defenses, was used mainly to quietly install unwanted software. Two other branches of the same TDS led to more damaging payloads: RemusStealer, an infostealer believed to be a variant of the notorious Lumma Stealer family, and AnimateClipper, crypto-stealing malware that reads a device’s clipboard to swap copied wallet addresses for attacker-controlled ones.
The scale of the operation shows up clearly in VirusTotal telemetry. Researchers logged more than 5,000 total submissions across relevant samples in just the publicly shared subset, and say the real number of infections is likely significantly higher. The earliest samples date back to August 2025, meaning the operation had been running for close to a year before it was uncovered.
With malware becoming a growing problem across every platform, downloading apps from reputable, vetted sources matters more than ever. TechSpot’s Downloads section hosts safe, clean, unaltered installers pulled directly from developers, and every file is scanned for malware and rechecked daily, so you can grab what you need with peace of mind.
Bottom line: Clément Delangue is not treating the recent breach involving OpenAI’s models as a typical security incident. Rather than limiting his response to internal fixes or legal action, the Hugging Face CEO is publicly calling for two specific concessions: full disclosure of what happened within the systems and a major commitment of computing power to build defenses.
At the center of his response is a call for what he describes as “radical transparency.” Delangue wants OpenAI to release complete traces of the models’ activity during the incident, including the steps they took and the systems they accessed. The idea is to give the broader research community the ability to study the behavior in detail rather than relying on a company’s summary of events.
His second demand is more concrete. Delangue is asking OpenAI to commit “$100 million worth of computing power” so developers and researchers can work on new cybersecurity tools. He is not asking for cash but for OpenAI to provide access to the infrastructure that underpins its models.
“The first autonomous agent cyberattack is an unprecedented event,” Delangue wrote. “It deserves an unprecedented response!”
Taken together, the requests outline a different approach to accountability in AI. Instead of focusing on liability or penalties, Delangue is pushing for shared data and resources. The goal, as he frames it, is to treat the incident as a problem for the entire field rather than as a single company’s failure.
That framing depends on how the breach is understood. Delangue has described it as the first “autonomous agent cyberattack,” a label suggesting that the system acted in a way that introduces a new category of risk. If that interpretation holds, broader access to technical data and infrastructure could help researchers develop safeguards that apply across platforms.
– clem (@ClementDelangue) July 28, 2026
Not everyone agrees with that characterization. Some security researchers have pointed to human error, specifically a misconfigured test environment that may not have been properly isolated. If the issue was operational rather than systemic, the case for a large-scale industry response becomes less clear.
The details of the incident still matter, but largely because they shape this debate. OpenAI said two of its models, including GPT-5.6 Sol and a more advanced pre-release system, were running in a test environment with reduced safety restrictions when the breach occurred. One of the agents obtained an access key and moved deeper into Hugging Face’s network.
What followed reinforced Delangue’s argument for greater openness. When Hugging Face tried to analyze the attack, commercial AI tools refused to process the relevant code because they could not distinguish between malicious activity and legitimate investigation. The company instead turned to GLM 5.2, an open model developed by Z.ai and running on its own systems. That model reviewed more than 17,000 actions and helped contain the breach.
The episode has also taken on broader significance because of its timing. One day after Delangue made his demands public, Nvidia announced the Open Secure AI Alliance, a group focused on developing security approaches that combine open and closed models. Hugging Face is a member; OpenAI is not. Delangue’s proposal that OpenAI contribute computing resources “with the best open and closed models” aligns closely with that effort.
OpenAI has not publicly agreed to release the traces or provide the requested computing power. Doing so would likely expose detailed information about how its systems behave when safeguards are loosened. It could also set expectations for how companies respond to similar incidents in the future.
For now, Delangue’s approach stands out as much as the incident itself. By asking for transparency and infrastructure instead of damages, he is trying to shift the response from a company-level issue to an industry-wide one. Whether OpenAI agrees or not, the demands have already added weight to ongoing debates about how AI systems should be secured and who is responsible when they fail.
The AI browser race is entering a new phase. After spending much of 2025 trying to reinvent web search with built-in chatbots, startups are increasingly shifting their attention toward browser agents that can automate repetitive work instead of simply answering questions. The latest company to embrace that transition is Polar, a startup founded by former Perplexity engineer Kevin Zhang, which has raised $5.7 million in seed funding led by Madrona.
Unlike the first generation of AI browsers that targeted everyday consumers, Polar is designed specifically for knowledge workers. Its premise is straightforward: instead of replacing Google Search, the browser aims to eliminate repetitive tasks that professionals perform across dozens of browser tabs every day.
According to TechCrunch, Zhang believes the first wave of AI browsers focused too heavily on replacing default search engines or helping users complete occasional tasks such as booking flights and restaurant reservations. Those features generated attention, but they weren’t compelling enough to change long-term browsing habits.
“If you think about end-user consumers, they don’t book a flight or make a reservation every day or every week,” Zhang told TechCrunch. “There wasn’t a strong pull for mass consumers to go to an AI browser and find value in it. That’s why our AI browser is not focused at all on mass consumers. We’re focused on where we think browser agents are actually valuable, which is knowledge work.”
Polar reflects that philosophy. Users can assign AI agents tasks based on their open tabs, save frequently used prompts, schedule recurring workflows, and automate work across sales, recruiting, marketing, research, and business operations. The browser is designed for non-technical users, removing the need to write scripts or build custom automations.
The product follows a freemium model. Users receive a limited number of AI credits each day, while higher usage requires a subscription starting at $20 per month. Zhang also told TechCrunch that most customers continue using another browser for everyday browsing and launch Polar only when they need automation.
Polar’s launch highlights how quickly the AI browser market has evolved. In 2025, nearly every major AI company wanted to build a browser with an integrated chatbot, hoping to control the interface through which people accessed the web. That strategy has since changed.

OpenAI’s Atlas has disappeared, The Browser Company’s Dia is increasingly focused on productivity, and browser startups including Strawberry, Browser Use and Aside are building products centered around AI agents rather than conversational search. Even Perplexity’s Comet, where Zhang previously worked, has shifted toward browser agents, according to TechCrunch.
Madrona believes that transition opens a much larger opportunity. Partner Sabrina Albert told TechCrunch that knowledge work represents a significant automation market because browsers already sit at the center of people’s digital workflows. Since users are already logged into the services they rely on every day, browsers provide AI agents with a natural environment to interact with those applications.
Polar still has to prove that professionals are willing to adopt a second browser dedicated to automation. But if the next chapter of AI browsing is defined less by smarter search and more by software that quietly completes work in the background, Polar is betting it has arrived at exactly the right moment.
The FCC’s ban on Chinese-made robots extends well beyond humanoids to quadrupeds, research platforms, and many robot vacuums from allied countries. Supporters call it a major boost for domestic robotics, but critics warn that cutting researchers and startups off from affordable foreign hardware could slow U.S. innovation instead. Ars Technica’s Jeremy Hsu examines who stands to gain and who stands to lose from the prohibition: Such an import ban would apply to some of the most affordable robots primarily produced by Chinese companies, including Unitree’s humanoid robots that are used by robotics labs and researchers for tasks such as experimental robot surgeries. US consumers would also likely lose access to the newest robot vacuum cleaners that are mainly manufactured by Chinese companies such as Roborock. But the ban also broadly applies to foreign-made robots produced by countries nominally allied to the United States, including Japan, South Korea, and Germany. […]
The ban on foreign-made robots could theoretically encourage more US and foreign companies to set up manufacturing facilities in the United States. There are already multiple companies racing to scale up production of humanoid robots in US factories, including Agility Robotics, 1X Technologies, and Figure AI. Tesla has been attempting to shift production away from older electric vehicle models and toward its Optimus humanoid robot. Boston Dynamics has already been making its Atlas humanoid robot, along with its four-legged Spot robot and wheeled Stretch robot, at its main facility in Waltham, Massachusetts. The US robotics company is also planning to massively scale up manufacturing of the Atlas robot under South Korea’s Hyundai Motor Company, which gained full ownership of Boston Dynamics in July 2026.
“This is one of the strongest technology-security actions in modern US history,” wrote Evan Beard, CEO of Standard Bots, in a LinkedIn post. “The message is unambiguous: robotics is a technology America must lead and own — and foreign-subsidized robots will not be allowed to unfairly dominate US robotics as they did solar.” Similar praise came from Rush Doshi, director of the Initiative on China Strategy at the Council on Foreign Relations, who, in a social media post, described the FCC decision as “one of the most significant actions taken so far in support of the US robotics ecosystem.”
However, several robotics researchers and analysts interviewed by The Robot Report expressed skepticism about any potential boost to US competitiveness in robotics. Some even warned that the ban could prove counterproductive for US robotics efforts to develop humanoid robots. “In the near term, the measure could slow US physical AI innovation by cutting startups and researchers off from future low-cost Chinese platforms before comparable Western alternatives exist,” said Georg Stieler, a global robotics advisor and managing director for Asia at Stieler Technology & Market Advisory, in an interview with The Robot Report.
US domestic production of robots lags behind China in terms of mass manufacturing at lower cost, said Rueben Scriven, a senior analyst at Interact Analysis. “This announcement is more likely to inhibit the US humanoid robotics industry, as the presence of low-cost Chinese humanoid robots has been helping educate the US market through promotional and entertainment use cases — an effect this policy risks undermining,” Scriven told The Robot Report. The report notes that previous FCC bans have done little to help create competitive U.S. alternatives, with restrictions on Chinese drones instead prompting companies to sell barely disguised versions of DJI technology.
offbeat
Like a Waymo mated with a Roomba
The dream of having a mechanical maid to clean your home is real … sort of. San Francisco residents can now hire a robot cleaner for just $30 an hour, but there’s a catch. The robots are at least partially controlled by humans who are watching your home remotely.
Tau Robotics cofounder and CEO Alexander Koch announced in a post on X Tuesday that his company was launching the waitlist for its invite-only cleaning services on Tau’s website.
Bereft of details like the specifics of the robot’s capabilities, Tau’s website is instead largely devoted to videos of the diminutive, router-headed, frog-eyed robot doing stuff. It’s shown in various videos and still shots hopping out of a minivan and grabbing its work bag, wiping down the inside of a refrigerator, cleaning surfaces, vacuuming, and emptying trash cans with its pincer-like hands.
The site also presents three featured house-cleaning robots for San Francisco: “Chelsea,” which specializes in cleaning kitchens and bathrooms; “Elon,” which Tau says learns where household items belong after a few recurring visits and returns them there; and “Tony,” a deep-cleaning specialist.
Koch claimed on X that none of the videos of the robot are sped up to make it look more natural, giving it a weirdly human way of moving that suggests Tau has developed a pretty robust robot – if the company is the one that actually designed it.
That doesn’t appear to be the case, however. Koch told us that the robot’s cameras, claws, and onboard compute system were designed in house, but the rest of the hardware comes from Chinese robot maker Unitree. Hopefully Tau has enough spares lying around since the Trump administration just banned imports of foreign robots.
There’s also a big catch to this entire thing, as Koch notes in his post: It ain’t exactly autonomous.
“Each humanoid is jointly controlled by a human operator and AI,” the Tau CEO said. An AI policy is always controlling the robot’s motors, Koch explained in a LinkedIn chat, but there’s always a human involved, too.
“A human operator is always guiding that [AI] policy, sometimes directly and sometimes through higher-level instructions,” Koch said. “The balance varies by task.”
The Tau CEO went on to tell us that he sees the project as “conceptually similar to autonomous driving,” meaning that human operators are fully behind the wheel for now, and over time will only be there for safety before eventually being phased out entirely.
As explained further in the company’s service privacy policy, each robot is controlled in real time by a human operator during cleaning visits, although Tau says the robots are jointly controlled by AI and a human operator. Some operators are Tau employees and some are placed through a staffing agency, but all of them are working on-site at Tau’s facility and have been background checked and trained by Tau, the company claims.
“We plan to enable remote supervision from other locations in the future,” Koch told us.
That said, the robots are still capturing video to train Tau’s AI cleaning models that the company said it hopes “will eventually do the job without a human operator.” That video is stored indefinitely unless customers request it be deleted. Operators, support staff, engineers, and third-party service providers all have access to those videos even if Tau doesn’t sell them or share anything for advertising purposes, and the company said recordings will include full video of every person in the home as well. Be sure to put some pants on before the thing visits, in other words.
If you’re still keen to let a human-operated robomaid into your house, you’d better get in line: Koch told us that each cleaning session is just one hour and so far “several hundred people” have signed up to be granted a spot. ®
Claude is down for some users, with Anthropic confirming elevated errors across multiple AI models. The disruption is causing requests to fail with a “529 Overloaded” message, including in Claude and tools that rely on its API.
Anthropic began investigating the outage at 7:49 p.m. UTC on July 29. At 8:33 p.m. UTC, the company said it had identified the issue and was working to resolve it, but did not reveal the underlying cause or provide a recovery timeline.
During the outage, I repeatedly encountered the following message: “API Error: 529 Overloaded. This is a server-side issue, usually temporary — try again in a moment.”

A 529 error generally means Claude’s servers are unable to handle the current volume of requests.
Thankfully, Anthropic is aware of the root cause and is working on a fix.
Update 1: As of 17:30 EDT, Anthropic says it’s continuing to work to fully resolve issues resulting in elevated requests and latency to Claude models.
It has already begun seeing recovery across most models, but some of you could still run into errors.
Security teams log 54% of successful attacks and alert on just 14%. The rest move through your environment unseen.
The Picus whitepaper shows how breach and attack simulation tests your SIEM and EDR rules so threats stop slipping by detection.

Microsoft’s Azure cloud business grew 43% last quarter, blowing past the company’s own forecast and surpassing $100 billion in annual revenue for the first time, providing fresh evidence of the potential for artificial intelligence to fuel new growth for the tech giant.
The company’s results for its fiscal fourth quarter also showed the price of that growth: capital spending hit a record $41 billion, largely to support the company’s AI buildout, and free cash flow sank 23% even as operating profits jumped 18%.
And in a new twist, Microsoft shares rose more than 5% in after-hours trading, in contrast with the recent pattern in which the company’s strong results were met with selloffs that pushed its stock near a one-year low.

Companywide results: Overall, Microsoft reported revenue of $90 billion for the quarter, up 18% from a year ago, and net income of $35.8 billion, up 31%. Analysts had expected $87.7 billion in revenue, a figure that was already at the top of Microsoft’s own guidance range.
Microsoft’s adjusted earnings of $4.74 per share topped the $4.24 that analysts expected, according to Yahoo Finance. That included a $3.2 billion gain on Microsoft’s investment in Anthropic, part of a 27-cent benefit from one-time items. Even excluding those items, the company said, it exceeded expectations across revenue, operating income and earnings per share.
Microsoft 365 Copilot surpassed 30 million paid seats, up from 20 million last quarter. That’s still less than 7% of the roughly 450 million commercial Microsoft 365 seats, a gap that has drawn investor skepticism all year.

Microsoft’s backlog grew 84% to $678 billion. Known as remaining performance obligation, or RPO, it’s the value of contracts that customers have signed but that Microsoft hasn’t delivered on yet, basically the business Microsoft has already locked in but has yet to record as revenue.
Investors have been worried for a year that too much of it came from a single customer, OpenAI. Microsoft said all of the $51 billion increase over the prior quarter came from customers other than the big AI model companies. Setting OpenAI aside, the backlog still grew 25%.
Windows OEM and Devices revenue declined 7%, hurt by slower PC demand and a tough comparison with last year’s Windows 10 upgrade wave. The decline would have been steeper, but PC makers built more machines to get ahead of rising memory prices, and Microsoft collects its Windows fee when a PC is built rather than when it’s sold.
Xbox content and services revenue fell 10% and Xbox hardware fell 13%. Microsoft also wrote down the value of unspecified Xbox assets. The company grouped that charge with severance costs and lower-than-expected costs from its retirement program — a net $500 million hit to operating income — and declined to say how much of it was Xbox or what was written down.
HPC
Government agency will use Google Cloud H4D VMs to replace HPE Cray machines
Uncle Sam will no longer be hosting his own supercomputers to predict the weather. The U.S. National Oceanic and Atmospheric Administration has picked Google Cloud to provide the infrastructure for its weather forecasting operations.
In an announcement, NOAA boasted that it will be the first national weather prediction center to run on the commercial cloud, though the UK’s Met Office is also in the process of moving its own weather prediction system to Microsoft Azure in a hybrid setup. Weather operations are typically run on in-house or government-funded supercomputer systems, which helps drive the HPC (high performance computing) market.
General Dynamics held the previous contract for managing NOAA’s weather predicting machines, which most recently were HPE Cray supercomputers running in data centers in Virginia and Arizona. Those machines – Dogwood and Cactus – could crank almost 14 PFlops of weather-predicting prognosis.
The plan is to move NOAA’s Weather and Climate Operational Supercomputing System, run by the National Weather Service (NWS) division, over to the cloud by December 2027, along with the software that generates NWS weather data for analysis.
The agency is hoping that the cloud will make model forecasting more nimble, resulting in earlier predictions and better warnings for all the extreme weather events that seem to keep occurring these days. It was the in-house systems that were holding things back, evidently.
“Cloud-based high-performance computing will accelerate the transition of research into operations by eliminating traditional bottlenecks of on-premise systems,” said NOAA Administrator Neil Jacobs in a statement.
Jacobs noted that the cloud’s flexibility for providing large amounts of compute is advantageous: the agency can ramp up cycles during tropical storm season, then wind them down during calmer periods.
Under the contract, NOAA can also avail itself of Google’s DeepMind set of AI tools to help build out its first AI-driven weather forecasting system, the AI Global Forecast System, which promises to offer accurate weather forecasts using 99.7% fewer computer cycles and take minutes, rather than hours, to produce a forecast.
NWS has already been upgrading the software downstream from GFS and GEFS to also work in the cloud. In March, it awarded contracts to Accenture and Booz Allen Hamilton to oversee the development of cloud-based software (HIVE and CIRRUS) for the field offices to analyze data and push out alerts, replacing the in-house software doing these tasks currently.
For the job, Google plans to use Google Cloud H4D VMs, built on AMD Epyc processors. Google labels these instances as “virtual machines” because they run under a hypervisor that integrates Google’s networking and orchestration tools. As a result, they can be synchronized to run large jobs the same way supercomputers do.
According to Google, customers can access H4Ds for as low as 3 cents per core-hour without long-term commitments. For supercomputing jobs, they can also use Cluster Toolkit to deploy clusters and Cluster Director to maintain them. Google Cloud’s Batch can handle the queuing, scheduling, and resource provisioning. ®
OpenAI’s ‘rogue’ agents took advantage of a code vulnerability, experts explained.
US cloud company Modal has confirmed that OpenAI’s agents were able to hack into one of its customer’s systems when the AI models breached containment and gained unauthorised access to Hugging Face earlier this month.
Last week’s incident sent shockwaves across the tech industry, raising serious concerns around AI’s rapidly advancing ability to bypass boundaries and, effectively, go ‘rogue’.
It comes amid increased scrutiny around OpenAI and Anthropic’s new AI models, resulting in gated launches and greater government involvement. Both AI giants have ramped up efforts to go public in blockbuster listings as they compete to gain market dominance and enterprise footing.
OpenAI CEO Sam Altman, in a recent interview, said that the Hugging Face breach was the first security incident he felt “very viscerally”.
“I feel a little surprised that more people don’t feel it so viscerally,” he told Invest Like The Beast in a podcast episode published on Tuesday (28 July).
Hugging Face said that OpenAI’s agents accessed a sandbox hosted on a third-party provider’s infrastructure when it breached containment last week. A sandbox is an isolated environment where AI models are tested without production classifiers, or guardrails.
Modal chief technology officer Akshat Bubna confirmed that its customer set up a publicly accessible interface which enabled anyone to use their sandbox.
“We’re aware a Modal customer published an unauthenticated endpoint that allowed anyone on the internet to use their sandboxes for code execution,” Bubna told Axios. “Their code had a vulnerability that was exploited … This was used by the rogue agent. Modal’s platform was not compromised in any way.”
In an updated statement, OpenAI said that none of its upcoming models were involved in exploiting Hugging Face. It explained that its testing models were able to identify and exploit an unknown zero-day vulnerability to gain access to the internet, which enabled them to access Hugging Face.
“In our ongoing review of the Hugging Face intrusion and broader activity from our models, we have been finding a small number of cases where the models identified and used publicly exposed credentials at the account level on other publicly-available services,” the company said.
“Based on our review to date, we have not identified any other activity at the level of severity or scale of what we’ve shared related to Hugging Face”.
Cybersecurity experts, however, believe that the breach is a result of “missing governance and control”.
“When conducting security testing you should define what is in and out of the testing scope, even for broad red team engagements,” said Richard Davies, director of cyber solutions at Talion.
“The reported impacts and timelines indicate this was not in place.”
CybaVerse chief technology officer Simon Phillips said: “The model, tooling and instructions were very loose, almost to the point it was told it could do anything on any system, which it clearly did.”
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The F-16 Fighting Falcon is one of the United States military’s greatest fighters. It was first introduced in the late 1970s, and while its current model is considerably more advanced, it is essentially a 40-year-old fighter jet — ancient for a combat plane. One might wonder, then, about how effective it could be in a dogfight? It’s a reasonable question to ask given its age, and one with a relatively recent answer.
In July 2026, a Ukrainian F-16 engaged a Russian Su-35 and made the first air-to-air kill in the conflict. The successful downing of an enemy fighter is a historic achievement for both the Ukrainian Air Force and the aircraft itself. Russian media revealed that its Su-35 was targeted, but the pilot survived. The status of said pilot remains unknown as of writing. Both the F-16 and Su-35 are 4th-generation fighter jets.
This is a significant milestone, as F-16s haven’t achieved such a victory in Ukraine since the U.S. and allies began providing them in August 2024. That said, this is somewhat par for the course for the F-16 overall: as of 2024, the F-16 had a combat record of 76 air-to-air kills and just one air-to-air loss. Previously, Ukraine successfully used F-16s to shoot down Russian missiles and drones, but the July 2026 air-to-air kill marks a significant change in their usage during the conflict.
Ukraine received its first (much-delayed) F-16s in summer 2024 and has since lost at least three of the fighters. The Ukrainian Air Force is believed to be operating around 39 F-16s, but a lack of missiles to arm them has kept the 4th-generation fighter from working intercept missions, though this issue has likely improved since March 2025. Ukraine’s fleet of F-16s is expected to grow, as Belgium is in the process of transferring seven sometime in 2026, though it’s unclear when precisely they’ll arrive.
Those first seven are just the beginning, however, as Belgium plans to transfer a total of 53 F-16s to Ukraine by 2029. Adding more F-16s to Ukraine’s inventory will significantly increase the nation’s layered defense around Kyiv and other cities targeted by Russia. The downing is definitely a highlight of the ongoing war, but it’s not as if Ukraine’s F-16s have sat idle on runways since their delivery in 2024.
Yurii Ihnat, a spokesperson for the Ukrainian Air Force, told Nederlandse Omroep Stichting (NOS) in July 2026 that Ukraine’s F-16s have downed around 2,200 Russian drones and missiles out of 3,000 intercepted attacks. While effective defensively, this recent air-to-air success shows that the F-16 is more than capable of offensive action. As long as Ukraine maintains them, news of additional fighter interceptions might trickle out of the prolonged conflict, potentially further reducing Russia’s supply of Su-35 jets.
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