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Microsoft to Launch Three Data Centers in Malaysia by Q2 2025

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Microsoft is set to launch its first cloud region in Malaysia by mid-2025, featuring three data centers in the greater Kuala Lumpur area, the company announced on Thursday. This initiative follows a $2.2 billion investment revealed last year, aimed at enhancing Malaysia’s cloud and artificial intelligence (AI) capabilities.

The new Malaysia West cloud region is expected to be operational by the second quarter of 2025, according to Laurence Si, Managing Director of Microsoft Malaysia. However, Microsoft has not disclosed the capacity of these data centers.

Regarding potential challenges due to U.S. export restrictions on semiconductor chips, Si stated that Microsoft was monitoring the situation but had not encountered any issues so far. “Everything is status quo for us,” he noted, emphasizing that Microsoft’s investment plans remain on track with support from various stakeholders.

Microsoft estimates that its commitments in Malaysia over the next four years will generate $10.9 billion in revenue and create over 37,000 jobs. The initiative is expected to accelerate innovation, enhance cybersecurity, and strengthen Malaysia’s position as a cloud and AI hub in Southeast Asia.

Microsoft Preparing Xbox Gaming Handheld for 2025 Launch, Plans Next-Gen Console Release in 2027: Report

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Microsoft’s Xbox division is reportedly gearing up for a significant push into the gaming handheld market, despite facing challenges in its console business. Since 2024, Microsoft has shifted its focus toward launching first-party titles on rival platforms, which has reportedly led to a record low in console sales in the US. However, Xbox chief Phil Spencer has emphasized that the company remains committed to its hardware business, and new reports suggest that the company is indeed preparing for a major hardware release in the coming years. Microsoft is planning to release an Xbox gaming handheld in 2025, alongside the launch of its next-generation consoles in 2027.

According to a report from Windows Central, Microsoft is collaborating with a major PC gaming OEM to develop the Xbox handheld device, which is expected to launch later this year. While the specific OEM has not been named, industry speculation points to well-known manufacturers like Lenovo, Asus, or MSI—each of which has already released its own gaming handhelds running Windows. The Xbox handheld, codenamed “Keenan,” is said to have a design unmistakably tied to Xbox, featuring a dedicated Xbox guide button, and will likely be built around Windows OS. This will allow users to access Microsoft’s PC Game Pass ecosystem and Microsoft Store, while also supporting other gaming platforms such as Steam and Epic Games Store.

The handheld is expected to be tailored for a seamless Windows experience on the go, addressing some of the criticisms that have been leveled at previous Windows-based handheld devices for lacking an optimized software interface. Microsoft has previously stated its intent to merge the Windows and Xbox ecosystems to improve the gaming experience for portable devices, suggesting that the handheld’s operating system will be fine-tuned for gaming rather than a standard Windows interface.

Looking further ahead, the report indicates that Microsoft is also in the process of developing a next-generation Xbox console, with the launch of the Xbox Series S/X successor targeted for 2027. While Microsoft’s console sales have faced some setbacks in recent years, these moves into new hardware markets show the company’s ongoing investment in its gaming hardware, which could set the stage for a refreshed gaming ecosystem in the years to come.

Microsoft Developing AI Reasoning Models to Rival OpenAI

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Microsoft Developing AI Reasoning Models to Challenge OpenAI’s Dominance

Microsoft is reportedly developing its own artificial intelligence reasoning models, aiming to reduce its reliance on OpenAI and remain competitive in the growing AI landscape. According to a report from The Information, the Redmond-based tech giant has been testing out AI models from companies like xAI, Meta, and DeepSeek as potential replacements for OpenAI’s technology in its flagship products, such as Microsoft 365 Copilot. The initiative marks a significant step in Microsoft’s efforts to diversify its AI offerings and reduce dependency on OpenAI, despite their early collaboration putting Microsoft at the forefront of the AI race.

Since its partnership with OpenAI, Microsoft has gained a leadership position in the AI space, using GPT-4 technology to power its Microsoft 365 Copilot. However, the company has been looking to mitigate the risks associated with this dependence, which includes high costs and the need for greater flexibility in its AI product offerings. In a move to address these concerns, Microsoft has been working on integrating both internal and third-party AI models into its systems, aiming for a more cost-effective and diversified solution.

The development of the new AI models, known internally as MAI, has been spearheaded by Microsoft’s AI division, under the leadership of Mustafa Suleyman. These models, according to The Information, perform nearly as well as OpenAI’s leading models and those from Anthropic on widely accepted AI benchmarks. This suggests that Microsoft is making significant strides in AI reasoning, potentially positioning itself as a major competitor to OpenAI in the space.

The strategic shift is also in response to the competitive nature of the AI industry, where companies like Google, Meta, and others are rapidly advancing their own AI models. Microsoft’s new AI models could offer a compelling alternative to OpenAI’s technology, allowing the company to offer more tailored and cost-effective solutions to developers. If successful, these models could change the landscape of AI-powered products, including the popular Microsoft 365 suite, and strengthen Microsoft’s position as a leader in AI innovation.