Microsoft Celebrates Its 50th Birthday
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This is the Daily Tech News for Friday, April 4th, 2025. We tell you what you need to know, follow up on the context of those stories, and help each other understand.

Today, Andy Beach tells us about the intersection of AI and advertising today and more from your emails. All right. I'm Jason Howell. And I'm Quintu Etow. Let's start with what you need to know with The Big Story. ♪

Today is Microsoft's 50th birthday. I forgot to get a cake. Oh, happy birthday, Microsoft. On April 4th, 1975, Bill Gates and Paul Allen began the company as a venture to develop software for the Altair 8800. That was the creation of Microsoft BASIC.

The company name was meant to imply a focus on microprocessors. That's the micro part. And software, that's the soft part, as you can imagine. Microsoft had a major breakthrough with MS-DOS in the early 80s with thousands of programs dependent upon it throughout the decade. That was, of course, followed by the historic launch of Windows in 1995. That was a major shift from the command line interface to a graphical user interface that

That made the computing experience much more widely accessible. And I mean, we see the impacts of that every single day nowadays. Microsoft's rocket ship years from the 1986 IPO through the end of the 90s gave birth to Microsoft Word, Excel, and eventually Office, Internet Explorer, and solidified Windows as the dominant operating systems. Real challenges came in the 2000s during what some have called the lost years.

At that time, Microsoft lost its antitrust lawsuit and saw a decline in stock growth for 15 years while also releasing important products like Windows XP and Xbox. Microsoft's rebound since then has been extraordinary with Satya Nadella at the helm starting in 2014. The company focused on its cloud business with Azure and Microsoft 365. And more recently, its AI business with Copilot.

Yeah, it was hard as I was prepping for this. I was like, what do you do on a 50th birthday of a technology company that like I consider Microsoft kind of synonymous with tech company, right? They're kind of like the Kleenex of tech company when you really think about it. They've been there since the beginning. They've reinvented themselves when it was needed. They've stayed relevant and influential. And then when they weren't as relevant, somehow figured out how to

make themselves relevant. You have to give Microsoft a ton of credit for being a strong model for successful technology company as it exists today. You know, I don't know what tech would be if Microsoft didn't exist. It'd be completely different.

Yeah, I totally agree with you. They've definitely become part of the zeitgeist, whether you are a tech person or not, you know, of a lot of things. You think of the Windows XP, lovely green background, which probably is on a lot of different computers. Like if you use computing at work at a big company, a small company, there's not a bad chance that it's Windows and everything.

Yeah, it is really impressive how, especially after the antitrust era, the public perception was not good on Microsoft. They became uncool. They became the sign of... Super uncool, yeah. Super uncool, big tech. And of course...

There were memes, there were memes. And I'm sorry, I don't want to bring up the developer thing. But at the same time, yeah, it's been cut, especially the last few years. They've really, really turned it around and even given us some surprises in regards to their partnership with, sorry, is it ChachiBT that's in Bing? With OpenAI? OpenAI, yeah. So they definitely have a lot of entanglement with OpenAI.

OpenAI in the last couple of years. Absolutely. But they've known how to just survive. And I don't, I think they've definitely turned it around. I wouldn't say they're cool now, but they're definitely part of the conversation and they still deserve their seat at the table. So. I mean, I think it really depends on who you, who you talk to as far as, you know, whether they are,

Cool. Now, I mean, you know, cool in the sense that like they're an up and coming new name on the on, you know, in the world of technology and, you know, surprising from that perspective, maybe not. But when you look at how Microsoft has turned things around, kind of the Satya Nadella thing.

era of where they're at right now. I went looking to just find like I wanted to find a single number that really puts a punctuation on that point, you know, that they were so far down before he took over and where they are now. Some, you know, 11 years later, market cap for Microsoft sat at two hundred sixty nine billion dollars when Satya Nadella took over in twenty fourteen.

Right now, that has risen to around $2.9 trillion. And it's just, it's really hard to compare that kind of turnaround to pretty much anybody in technology. It's the scale, it's the context of the actual challenges that they face.

during those lost years, especially this successful pivot that we've seen that they continue to thrive from into cloud and right now into the embrace of AI when it really mattered. I mean, they've...

You know, like we've said already, they've learned how to kind of reinvent themselves. And, you know, they might not be the coolest tech company, whatever you define as cool, but they've certainly figured out how to stay relevant and be a success in 2025. Absolutely. Very adaptable. Jason, I have to ask you, what is your favorite version of Windows?

Hmm. Favorite version of Windows. It's hard to not pick XP just because I used it a lot. Although 95 was pretty awesome back in the day. And I have some memories around that. But XP was the one that I probably got the nerdiest with right before switching almost full time to the Mac operating system. I used XP quite a bit.

What about you? I think mine actually, so the first one in my heart was Windows 2000. I think when I was in engineering school, I got a laptop that had Windows 2000. And I think it was even whatever they called it back then, pro or business. So it was kind of like a, it felt kind of souped up and kind of cool. Yeah, you had extra. I had extra. And then I think, wait, am I getting, is it backwards? And XP came after 2000, right? Is that right? Yeah, XP came in, what is it, 2021?

Well, I can't remember when that was. Was it 21 somewhere around there?

I could be wrong on the date there, but... But yeah, I definitely remember XP and I also got nerdy with it. And I also skinned the ever-living daylights out of XP as well. There were like purple bubbles and everything everywhere. But yeah, I always have a... And you had five Winamp instances scattered across your display. Yes, college was a good time. It was a good time to be nerdy and a good time to be able to play around with something like your OS settings and try to, I don't know, make computing your own rather than it...

be kind of this gray, static, blocky, nondescript thing. Although that is kind of iconic. I think we totally was it D brand in their April fool's touch grass website. It actually had a very windows 3.1 vibe. And I think there was a kind warm nostalgia that hit my heart when I, when we were scrolling down that page.

Yeah. I have a lifelong love of the game Minesweeper. I have a version of it on my Android device that literally like when I'm on a long flight, I play it probably more than any other mobile game. If I'm going to turn on my phone and play a mobile game, I couldn't even tell you the name of it off the top of my head. It's just the button that I press to play the game that I want to play. What is it? Minesweeper?

Uh, Minesweeper collector. There you go. Uh, so anyways, that's your throwback to, to Microsoft. I think the, the, you know, it'll be interesting to see their success in recent years and what that means for the future. We obviously don't know. There's still antitrust, still regulatory threats, still rising competition in cloud. Um,

So it remains to be seen. But 50 years for a company like Microsoft, I mean, worth giving a nod to. Whether you are a Microsoft fan or not, you know, you couldn't care less about Microsoft. I mean, what you do on your computer would not be what it is if it were not for Microsoft. And so I think they deserve a lot of praise and credit for that. 150%.

Well, Daily Tech News Show is made possible by its listeners. Thanks to all of you, including Norm Fazekas, Chris Allen, Mark Gibson, and welcome new patron, MJK. Oh, my three favorite letters, MJK. Welcome. Good to have you here.

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There's more we need to know today. Let's get right to the briefs. Intel and TSMC have reportedly reached a tentative agreement to form a joint venture aimed at managing Intel's U.S. chipmaking facilities. The information reports that TSMC would hold a 20% stake with the new entity, offering its manufacturing expertise and training Intel employees as opposed to direct financial investment.

The partnership would reflect a strategic move to bolster Intel's competitiveness in the semiconductor industry. Yeah, especially when the U.S. government is looking to get U.S. technology companies performing better. And this seems like the kind of move that would really move Intel in that direction.

Mid-Journey released v7, its first new version in almost one year. One week after OpenAI's ChatGPT 4.0 image update saw viral, Studio Ghibli or whatever you call it, Success Online, the new model has a draft mode that is around 10 times faster at generating images than the previous model with a conversational mode tied into that. That's offered on the web anyways. The new model has personalization on by default, so users can expect

to rate 200 images at launch in order to build a profile prior to use.

I love that. Mid-journey feels like to me, in my mind, the OG of image generation. And so, you know, it just feels like, okay, ChatGPT had a big week, you know, no, what is, it's like no press is bad press. I don't know about that. But mid-journey was like, hey, hold, hold my beer. I got a new version too. I'm still here. Hold my AI generated beer. Maybe, maybe mid-journey is the Rodney Dangerfield of image generation AI systems. I get no respect. Yeah.

I see my dream now adjusting its tie and getting ready. I like it. Well, some iPhone users who updated to iOS 18.4 have reported the sudden appearance of games on their device without permission. In certain cases, these games were previously stalled and later removed, while in other instances, the apps had never been part of the user's app library. Apple has not yet commented on this unusual behavior.

Yeah, no one wants apps suddenly appearing on their device that they didn't install, especially for a company like Apple that is very, you know, very much about privacy and security and kind of controlling that experience. A little weird. It's obviously a mistake and unintentional. You know, I guess we don't actually know, but I'm assuming it's pretty unintentional and Apple will address it.

Amazon is testing out a buy for me button that's driven by agentic AI and apologies in advance. There were a number of AI stories today and there wasn't a whole lot else to pick from. So you'll get a few more than you normally do. But anyways, this agentic AI buy for me button is used to purchase items on third party sites without exiting the Amazon app. Now, this is an extension of last month's test.

that allowed users to find and visit third-party sites through the Amazon app. But there, of course, you were doing it manually. Here, users click the Buy For Me button on supported items, verify payment information inside the Amazon app, and then the new feature will autonomously purchase that item from the third-party site. The test is available to a small number of users with plans to expand later this year.

NVIDIA is confirming the inclusion of DLSS, deep learning super sampling tech, in the latest Nintendo Switch 2. NVIDIA says this results in 10 times the graphical performance of the original console by first rendering games in low resolution, followed by AI-driven detail enhancement, thanks to the system's dedicated Tensor cores. The dedicated cores support real-time ray tracing, along with face tracking and background removal for video chat.

Nvidia's confirmation comes on the heels of a statement by Nintendo that it is pushing its April 9th pre-order date to a later date as the company assesses the impact of the US tariffs announced yesterday. The June 5th launch date is unchanged.

Yeah, and I'm sorry I got that date wrong. I think it was announced on Wednesday, so my apologies there. But I think this was a question that we had yesterday when we were talking about this is what is the direct impact, like the immediate impact of the fact that the tariffs were announced right around the time Nintendo also announced its new console. So I'm not surprised at all to see them be like, okay, let's take the foot off the gas and put it in the clutch for a little bit.

I mean, again, we're not economists, but I don't know. Would it be that they have to adjust pricing or I mean, what other mitigation or strategy around pricing?

Like, yeah, again, not an economist, just curious, what would they actually do? I don't know. I mean, if pricing, you know, if pricing of all the parts and components jumps as much as it seems like they would, depending on how much, you know, kind of foreign technology is being used or where that technology is coming from and then the import cost, because it's obviously Nintendo is not a U.S. company necessarily, but certainly it's going to be impacted.

I am also not an economist, though, so all I can do is say we will wait and see. That lovely saw for podcasts. College students in the U.S. and Canada can get a free subscription to ChatGPT Plus, normally $20 per month through the end of May. So if that's you, get in on it. This comes one day after Anthropic launched its own partnership with a select number of schools called Cognizant.

clawed for education, Anthropics approach does differ in that it places emphasis on a learning mode that actually walks students through Socratic thinking in place of kind of revealing direct answers. And I think the OpenAI, you know, OpenAI is kind of modeling this as get more done in less time, certain type of thing. So they're definitely different approaches, but both aimed at college students.

I think it's a really good strategy to kind of make... Again, I always feel like there's so much room for...

adoption by doing academic pricing, student pricing. And in fact, that was actually, that was one of the things that endeared me to Microsoft. Again, when I was a student and had my Microsoft 2000 laptop, I got, I got student pricing on, I guess, Windows Office back then. And so it was always just like, well, it's nice that I can use this for a reduced price. Thank you, Microsoft. As they say, like get them, get them, get them when they're younger as far as using your products, right?

Get them using your products earlier and they create habits around that. Absolutely. So that's an example. Well, on that note, we got one more Microsoft story for you because Microsoft launched the Windows 365 Link, a $349.99 mini desktop designed for businesses to connect to its Windows 365 cloud service.

The modernized thin client allows for virtual Windows PC access over the internet, making it ideal for remote work. It's powered by an Intel N250 processor, 8 gigabytes of RAM and 64 gigabytes of storage. The new machine is available in select countries and sold through Microsoft's commercial channels rather than direct to consumers.

Yay. It's too bad there's not like a ribbon on it that says, yay for 50 years. Here's a new client. I'm not a marketing expert either, by the way. I would like that though. It would be very festive. Well, those are the essentials for today. Let's dive a little deeper in the ongoing stories and follow up.

We hear so much about AI. Would you agree? Well, we also hear a lot about how AI will affect industries. And as much as you don't love advertising, you got to admit it's an unavoidable part of all of our lives. And Tom Merritt checked in with Andy Beach to find out how AI tools are being used in the world of advertising and what that might actually mean for you. Andy, man, thanks for joining us again. Yeah, good to see you, Tom.

Yeah. I know a lot of people are like, I don't care about ads, but we're going to explain something that's interesting in the industry and also will probably have an effect on what you see around you. What's the story about? Yeah, absolutely. You know, advertising is a big part of the media industry, whether we like it or not. And AI is going to impact it the way that it is impacting all the other parts of the business.

This was a fascinating one because this is really a story about a pretty respected name, Creative Agency RGA. Currently has been owned by a larger marketing company called IPG. IPG is in the midst of merging with Omnicom. And as part of that, they decided to sell off RGA. It has been part of that business, I believe, for like the last 23 years or so, even though it goes way back beyond that.

As part of this sort of shift, they are taking this opportunity to really pivot to sort of a big AI investment. They see AI as the future. And so they're creating a $50 million innovation fund to drive both the research and the implementation of what

creative capabilities are possible using Gen AI in the advertising space. And so a big respected ad agency getting some independence is causing it to take more risks. Yeah, that's what that story sounds like to me. Absolutely. And they want to really think about how this goes into the people they hire, how they train to use it in the space.

It might change the products or it might even change the kinds of deliverables that they're ultimately going to have out there. So they want to really approach it. And some of the thinking that's going on here that I think will have an impact for how we do it is,

The we really notice advertising when it's annoying and clunky, when it's working, we don't mind it and we don't we don't even really see it. It's just sometimes we don't think of it as advertising. Right. It's just subtext and it's just there. And I think if they can strike a balance between how they can use AI to drive advertising.

both a personalized experience, but, but also a creative experience that goes beyond just that, that bumper or that, that clunky commercial insert that we have there, there might be a new thing that, that, that can come into being that, that doesn't feel as intrusive. And then we don't mind it as much. And that's really, that's, I mean, brands, ultimately, I think they're looking to

to find the audiences that like their material, but also are attached to certain properties or certain shows. And this might give them a ramp to do that without it feeling intrusive. How does that,

manifest though because i think a lot of people when they hear this they think oh so it's going to be like sora uh creating a commercial and you know there'll be a bunch of six-fingered people walking around like that's not what we're talking about right yeah no no it's it's it's pretty advanced i think the way they're thinking of it and again there's there's a multiple different tracks uh

whether it's a synthetic actor that is involved in part of it. There are other articles out there about that right now as well. Or it could be something as simple as having the right version, like shooting a commercial once, but having the right localized version of that Coke bottle or that Pepsi bottle in every country that's there so that you can repurpose a commercial easily, but...

It feels authentic to your region and your area because you're seeing the version of the brand, you know, you know, you're not just seeing a repurposed U.S. commercial or repurposed. So the one in Seoul has Hangul on it. The one in Russia has Cyrillic on it, et cetera, et cetera. Exactly. And sometimes even the brands are totally different, sometimes in different countries.

you know, the Coke isn't really a Coke. It's a lemon flavored soda or something else that's a more popular one. And so maybe they substitute that in. I think this is also a way they're going to go back in and probably...

uh, look at, and this isn't really covered in the article, but I know I've, I've heard conversations in, in the industry around going into back catalogs of content where, where, you know, in the past it highlighted a specific, maybe pen or a specific car. And we now will, in the future, we will have the technology to substitute or swap out a different brand potentially in there. And that's a place, uh, a, uh,

a brand agency might take a bet and go try remonetizing old content that's known and loved by inserting their brand into it in some way.

Is it, could that, is that talking, are we talking about product placement where I watch an old episode of, of something and the car the person's driving is different? Or this, or the cereal that's sitting on the kitchen table is, is different. All of those things are, are, are an area where those placement pieces are, are a part of a marketing campaign that they think about for this, for this type work. And so I'm sure that's on the table as, as part of what they're speculating about.

What I love in this story is the fact that they're taking a pretty inclusive approach. They're not just firing off one or two ideas and saying this is explicitly what they're doing. They're setting up a fund. They're going to go work with startups that are ahead of them. They're going to go find other agencies to potentially partner with, and they're going to find brands that want to be aggressive about thinking about how they go tackle a specific slice of the attention economy, really.

Yeah. And this allows what is an older company to act like a newer company because the bigger companies are a little slower. Absolutely. I think they it's a great opportunity. And I feel it feels like a right time to me if a company is going to go try something bold around generative AI. This this is a good way to do it. So I'm optimistic to keep tabs on it. And I hope it's something that proves successful over the next couple of years.

Is there a way if I see something that I can go, I bet that was RGA. Like, how will I know? There are often pieces, and this is more in the industry space, but things like Ad Age will often have big announcements that come out about a certain brand tying themselves for the next year to a specific agency. And so that's the place I'll be watching to see whether they've signed up like a BMW or a Coca-Cola brand

or somebody else. And then I'll be looking for those ads across multiple properties online, in TV shows that I watch, even maybe in the podcast that I'm listening to.

Well, folks, if that sounds like too much work for you, let Andy do it for you. He's got a Substack where he writes up this sort of thing. And if something like that becomes really interesting, I'm sure he's going to talk about it. Where can folks go to get that, Andy? Thanks, Tom. Yeah, so I'm writing over at Substack. It's abeach.substack.com. That's A-B-E-A-C-H.substack.com.

Awesome, man. Thanks for joining us. Thanks again, Tom. Join in the conversation in our Discord, which you can join by linking to a Patreon account at patreon.com slash DTNS. Instacart is on a mission to have you not leave the couch this basketball season because between the pregame rituals and the postgame interviews, it can be difficult to find time for everything else. So let Instacart take care of your game day snacks or weekly restocks and get delivery in as fast as 30 minutes.

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We end every episode of DTNS with some shared wisdom. Today, Luigi Capelle is helping us understand.

Luigi writes, Hey team, I enjoyed the short history of the smartphone today. That brought back some memories from my days as a wireless computing evangelist. Among the businesses I started and ran was the New Zealand Smartphone and PDA Academy, where I taught people how to use these devices, as well as retail floor staff on how to sell them. Those were also the early days of eBooks long before the Kindle arrived.

Luigi also shared a photo of some of his early smartphones, the HP iPack, the Kyocera Palm phone, and the Google One.

Google one. Yeah. I think he, he mentioned, you know, the photo is of the T-Mobile G1, but he referred to it as the Google one. And I saw that. I'm like, Oh, that's an error. But then when I started poking around, there are some articles from back when the T-Mobile G1 released where they were saying, and I don't know if I couldn't find any direct reference from like T-Mobile or Google or whatever saying the G stands for Google. This is the weird little, like, you know, uh,

pathway, you know, rabbit hunt or whatever that I ended up on when I read this. But some did refer to it as the Google One. So I think I know what you're where you're coming from. I just that had never occurred to me before that it might be the Google One instead of the G1. Interesting. Yeah. Yeah. T.L. Today I learned. Today I learned. T.I.L.G. One. OK, there we go.

If you have an interesting story or an interesting history with early smartphones or really any technology, share your story. Feedback can be sent to DailyTechNewsShow.com. Thanks to Andy and Luigi for contributing to today's show. Thank you for being along for Daily Tech News Show. The show is made possible by our patrons.

on patreon.com/dtns. DTNS has a live version called DTNS Live on YouTube and Twitch. You can find details on that and more on dailytechnewsshow.com. We'll talk to you on Monday.

This week's episodes of Daily Tech News Show Briefing were created by so many people, and here they are. Host, producer, writer, Tom Merritt. Host, writer, Jason Howell, also Jen Cutter. Co-host and writer, Nguyen Thuoc Dao. Co-host, Rob Dunwood and Shannon Morse. Producer, Anthony Lemos and Roger Chang. Editors, Hammond Chamberlain, Victor Bognotte.

science correspondent Dr. Nikki Ackermans, social media producer and moderator Zoe Detterding,

We of course are wonderful mods beat master, W Scott, Scott, as W Scott has one bio cow captain Kipper, Steve Guadarrama, Paul Reese, Matthew J. Stevens, AKA gadget virtuoso and JD Galloway. We've got our mod and video hosting by Dan Christianson music provided by Martin bell and Dan looters art violin, Peralta, a cast ad support from Tatiana Matias,

Patreon support from Tom McNeil and guests on this week's shows included Molly Wood, Nate Langston, Richard Gunther, Kim White, Scott Johnson, Veronica Belmont, Chris Ashley, and Andy Beach. And thanks to all our patrons who make this show possible. The DTNS family of podcasts.

Helping each other understand. Diamond Club hopes you have enjoyed this program. This show is part of the Frog Pants Network. Get more at frogpants.com. Banking with Capital One helps you keep more money in your wallet with no fees or minimums on checking accounts and no overdraft fees. Just ask the Capital One bank guy.

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Ever wonder what your lashes are destined for? The cards have spoken. Maybelline New York Mascara does it all. Whether you crave fully fan lashes with lash sensational, big, bold volume from the colossal, a dramatic lift with falsies lash lift, or natural looking volume from great lash, your perfect lash future awaits. Manifest your best mascara today. Shop Maybelline New York and discover your lash destiny. Shop now at Walmart.