Microsoft's business unit shuffle and shrouded AI spending spark a sharp conversation on whether shareholders and users can trust what's hidden behind new financial reports. Also, Start11 v3 adds Start widgets and menu sharing, plus Taskbar Islands, app groups, and more. Finally, LM Studio is the obvious place to start with local AI, and it works on any PC (not just an RTX Spark). Just be sure to get the right app.

Microsoft Earnings

• Microsoft earned a net income of 36.6 billion on revenues of $92.3 billion in the quarter ending September 30, 2026
• Those are both double-digit gains over the year-ago quarter, or 32 percent and 19 percent growth, respectively, year-over-year (YOY)
• We were promised more transparency, but what we got is a mixed bag
• Microsoft is too complicated a business for only two top-level business segments
• Windows revenues from PC makers down 27 percent (!)
• XBOX gets a hard revenue number, and it's not bad
• Microsoft spent $45.2 billion on capex (AI) expenses, up 30 percent - this is not the real number - and it will get bigger
• No paid Copilot numbers, weird
• Microsoft "earned" $10 billion in revenue from OpenAI - OpenAI still owes Microsoft money - MS stake in OpenAI is down; no one said why

Windows

• We talked about this last week, but I now have two sources at Microsoft confirming that Microsoft's AI strategy is the reason it's fixing Windows 11
• Microsoft discusses its work to make Windows 11 fit in 8 GB of RAM
• Microsoft Edge is the first Windows browser to support accelerated app launches
• Experimental and Experimental 26H1 get new inline actions for the new Windows Search

Hardware

• It's been weird watching other reviewers try to figure out RTX Spark, but this much is clear: This platform is not ready
• Baby steps: A few minor victories after weeks of defeats

More earnings

• AMD up 45 percent to $13.4 billion
• Intel up 21 percent to $16.5 billion
• Google/Alphabet up 25 percent to $127.6 billion
• Apple up 12 percent to $114.5 billion
• Amazon up 12 percent to $202 billion

AI/dev

• Three and a half years after it should have happened, Anthropic, Google, Microsoft, and OpenAI agree to let sites opt out of scraping
• OpenAI to unify chat and Work but not Codex
• Google says schools that disable AI will lose access to Google Search - They're integrated. It's nice to see Google channeling Microsoft again
• .NET Conf is next week, and Microsoft just posted the schedule

XBOX and gaming

• There was a bit of drama when XBOX COO left after only a few months on the job, and now there's more
• New titles coming to Game Pass in early November
• The next Elder Scrolls game is ES VI Sentinel
• GTA VI to rival Call of Duty - in the amount of disk space it requires

Tips and picks

• App pick of the week: Start11 v3
• App pick of the week #2: LM Studio
• RunAs Radio this week: PowerShell 7.7 and DSC 3.3 with Jason Helmick
• Brown liquor pick of the week: Caol Ila 12

*Thumbnail courtesy of Joe Esposito in Club TWiT

These show notes have been truncated due to length. For the full show notes, visit https://twit.tv/shows/windows-weekly/episodes/1008

Hosts: Paul Thurrott, Richard Campbell, and Mikah Sargent

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Why does Microsoft keep stumbling with new devices and software design... and what happens when enthusiasts start favoring AI over old-school Office? Paul, Richard, and Leo dig into shifting loyalties and what that means for the future of the desktop. And with the release of 26H2, it's time to update your install and recovery media. The build number is 26300.9457

Windows

• Windows 11, version 26H2 is here
• New features, none unique: Start, Taskbar, Search, etc
• New defaults for some features: Windows settings backup for commercial customers, etc.
• The time a UX legend interviewed for a job at Microsoft running Windows UX
• WSL Containers are generally available in Windows 11
• Four new Insider builds, but only Experimental gets anything interesting: Phone companion improvements and Energy recommendations directly in Quick Settings

Software

• Microsoft retires the Microsoft 365 Companion apps for Windows 11 that never made sense in the first place
• Mozilla ships the new Nova UI in Firefox 157

Hardware

• Copilot+ PC brand could be on the way out, but it was all over IFA, including on RTX Spark-based PCs
• Microsoft launches new base Surface Pro and Laptop models with Snapdragon X2 - And a new mouse, for some reason
• Qualcomm brought (first-gen) Snapdragon X to Googlebook, but it's also bringing X2 to Linux
• Google quietly reveals that, yes, Chromebooks are on the way out

AI

• Microsoft unveils the Copilot "super app" and the notion that this is basically an OS
• Open releases about 1000 new updates for ChatGPT
• Claude Sonnet 5.5 joins Opus 5.5
• The AI money pit, part 127: Report details Anthropic losses, spending, and revenues. Report also does a bad job at visualizing that information

XBOX and gaming

• Disc to digital program is live
• Minecraft Dungeons is here with a new dimension, and it's coming to Minecraft next year too
• Microsoft has a new casual mobile game for some reason
• XBOX now has mythic achievements

Tips and picks

• Tip of the week: Get the Windows 11 version 26H2 ISO
• App pick of the week: Opera on desktop and on mobile
• RunAs Radio this week: AI and Penetration Testing with Paula Januszkiewicz
• Brown liquor pick of the week: Kilchoman Loch Gorm

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Paul Thurrott gets hands-on with NVIDIA's new RTX Spark AI PCs and reveals why all that power isn't translating into practical results for certain users. Expect strong opinions and a few surprises about the state of local AI on computers. Plus, Tolaria is a free, open source, vibe-coded replacement for Notion that's based on Markdown files. And now it's on mobile too! Llama Windows is also free/open source and natively supports Windows 11 on Arm and RTX Spark. It may be the easiest way to interact with local AI on Windows.

Windows

• Microsoft discusses second round of pain points updates for Windows 11, starting with a new Photos app plus the ability to work well with just 8 GB of RAM
• Six (!) new builds, including two to the Release Preview Channel
• Microsoft Edge is working towards no-reboot updates
• Opera Air gets a nice refresh
• The Proton roadmap is spectacular
• RTX Spark: HP OmniBook Ultra 16
• RTX Spark: Lenovo Pro 9n 15
• RTX Spark: ASUS ProArt P16 arrives with 128 GB of RAM

Microsoft 365

• OneDrive is getting a Copilot-infused upgrade for files and photos in the AI era

AI/dev

• RTX Spark hands-on: Local AI is more frustrating than useful
• Microsoft is working on a comprehensive strategy to secure AI agents
• OpenAI releases an AI coding model for Visual Basic, other older programming languages

XBOX and gaming

• Report: Project Helix starts with a gaming handheld in 2027, not a console, with a new console in 2028
• Microsoft reveals standalone Cloud Gaming costs - 10 hours for $3.99, 25 for $7.99, 50 for $11.99
• ASUS ROG XBOX Ally X20 is here for $1300 and up
• ASUS ROG XBOX Ally X20 is here for $1300 and up
• AMD is bringing FSR Upscaling 4.1 to XBOX consoles, ROG XBOX Ally
• Final Fantasy VII Remake is the star of the late October Game Pass releases
• NVIDIA touts games already optimized for RTX Spark
• XBOX highlights new indie titles coming to PC, console, and Game Pass over the next year
• EA is shutting down BioWare

Tips and picks

• App pick of the week: Tolaria
• App pick of the week #2: Llama Windows
• RunAs Radio this week: OWASP Top 10 for Agentic Applications with Will Velida
• Brown liquor pick of the week: Ardnahoe Inaugural Release 5 Year Old

Hosts: Paul Thurrott, Richard Campbell, and Mikah Sargent

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Microsoft released new Windows 11 Experimental builds. A new round of buyout offers has been presented to 25% of Microsoft's global workforce. Microsoft fixed a major Authenticator flaw for Android. And... no major XBOX news?

Windows

• Paul has confirmed a theory weʼve discussed about why Microsoft is really improving Windows 11 this year.
  Windows Insider Program
• Four new builds - Mobile device controls in Quick Settings, native Internet speed test.
  Corporate
• Microsoft offers buyout offers to almost 25 percent of its global workforce.
  Hardware
• This week in Paulʼs RTX Spark local AI coding fails - plus, the first step is realizing itʼs not you, itʼs the technology.
• Some advice for using AI.
  Software
• Microsoft fixes major Authenticator flaw on Android.
• PowerToys adds two new utilities, so many other updates.
• The Browser Company announces the inevitable end of Arc browser.

AI

• Anthropic files for IPO, warns that its work could end humanity.
• Canva releases its first AI model, for images.
• Opera brings local AI to its desktop web browsers with WebAI standard-to-be.
• Apple is bringing AI assistant to its iWorks apps - Apple copies Microsoft again!

XBOX and Gaming

• No real news this week, which is rare, but a few thoughts about the new Call of Duty.

Tips and Picks

• Tip of the Week: Yes, the Windows Setup workarounds still work in 26H2.
• Windows 11 version 26H2 arrived recently and Iʼve now tested the installer on multiple Arm64 and x64 PCs and the local account workarounds we all know and love still work. My advice: Use Rufus to create install media.
• App pick of the week: Mozilla Firefox
• With a year or so of major improvements to its web browser, Mozilla has launched a big ad campaign to get Firefox users back.
• RunAs Radio this week: PostgreSQL with Elizabeth Christensen
• Brown liquor pick of the week: Vardberg Born

Hosts: Mikah Sargent, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Windows

• Week D arrives, and this time we get updates - a preview of Octoberʼs Patch Tuesday
  • 24H2/25H2 Minor update with new Copilot key remaps, Wi-Fi in WRE, more
  • 26H1 Major update that brings all new 26H2 features—Start, Taskbar, Search —to 26H1. Finally.

Windows Insider Program

• Four new builds last Friday - Biggest change is Cloud Rebuild in WRE (in Experimental) gaining new capabilities.

Software

• 30 years ago, Dave Plummer created Task Manager, and now heʼs vibe-coded a modern version that works on Mac and Linux too.
• Stardock announces a new Windows 11 utility called Snipboard.
• Clipchamp does AI upscaling to 4K now

Hardware

• The Lenovo ThinkPad X9 15p Aura Edition is nearly perfect, with 11 hours of battery life.
• Googlebook revealed!
  • Questions answered - $899 starting price is much lower than expected.
  • This is Androidʼs Copilot+ PC moment - An AI PC? What a concept!

AI/dev

• Microsoft announces a OneDrive + Copilot event in October - Also a separate Copilot event before then.
• Financial Times reveals internal OpenAI prediction of $278 billion in losses over the next five years.
• NYT copyright case discovery reveals what Microsoft and OpenAI really think about stealing content.
• Anthropic merges Cowork into chat, adds Docs and Slides.
• Google Labs CC turned into Gemini Daily Brief, so now itʼs an AI agent for families.
• Google opens up its Home smart home ecosystem to other AI assistants.
• XAML.io is a web-based vibe coding IDE for .NET apps and it looks amazing.

XBOX and Gaming

• A big reorg and a small number of layoffs at XBOX sets off a new round of hand wringing.

Tip and Picks

• Tip of the week: Get Auto SR on Panther Lake-based laptops
• Auto SR was designed to make gaming viable on Windows 11 on Arm/Snapdragon X/X2, but now itʼs available on Intel Core Ultra Series 3-based PCs and it is worth experimenting with.

App Pick of the Week: Affinity

• Possibly the greatest free app in existence, Affinity just got 60 new features and is even better.

Hosts: Leo Laporte and Paul Thurrott

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Microsoft and NVIDIA's RTX Spark laptops are official, with preorders open and shipping October 16. Prices run from $2,599 (24GB) to $5,899 (128GB, already sold out on Surface). Paul and Leo cover who needs that much RAM, what "hybrid intelligence" means, and why Paul's new Googlebook disappointed him.

Windows

• RTX Spark laptops: from $2,599 (24GB), $3,700 (32GB), $5,899 (128GB). Ships Oct 16
• Partners: Microsoft, ASUS, Dell, HP, Lenovo, MSI. Paul reviews the HP OmniBook Ultra 16 first
• Surface RTX Spark Dev Box: $6,000+
• "Hybrid intelligence": local AI first, cloud when needed
• Windows Search gets inline AI actions in Insider builds
• Cloud Rebuild adds better remove and sanitize options
• Windows app adds Remote PC connections (preview)
• Intel Wildcat Lake: Paul's test laptop was slow even with 16GB
• Googlebook first look: Lenovo Googlebook 15 (~$1,100) is missing basics an iPad has
• Microsoft has tried to kill Windows many times, including the leaked Project Aion

AI/Dev

• Microsoft AI ships new voice and transcription models
• Gemini 4 Argon is announced, but limited to cybersecurity partners
• Google Docs and Drive add native Markdown
• C# Dev Kit 11 arrives with .NET 11

Xbox and Gaming

• Rockstar corrects reports of exclusive Xbox GTA VI streaming. Launch is Nov 19
• Xbox Elite Series 3 controller leaks again, with a built-in screen
• October Game Pass: Battlefield 6 and more
• Sony brings QSSR AI upscaling to the standard PS5
• Google Playground lets you vibe-code games

Tips and Picks

• Tip of the week: Desktop98.com, a Windows 98 simulator in your browser
• App pick: Gears of War: E-Day (Game Pass Ultimate and PC)
• Brown liquor pick: 1792 Small Batch bourbon

Hosts: Leo Laporte and Paul Thurrott

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

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Microsoft's record-breaking Patch Tuesday unleashed nearly a thousand fixes, but the bonus story is in the chaos that followed as out-of-band updates and AI-driven bug hunts left admins scrambling to keep up.

Windows

• Patch Tuesday was so buggy Microsoft had to release an emergency fix to address all the issues
• New Release Preview builds for 24H2/25H2 - I guess we're moving past the features that are also in the initial 26H2 release - New Copilot key remapping feature, they will get it right eventually
• Five builds across Experimental and Beta channels - All over the map as you'd expect
• Google releases the Gemini app for Windows
• Adobe released Photoshop and Premiere Elements 2027
• AnyType is a top-tier Notion alternative and it's about to get very interesting
• Microsoft previews an October Windows + Surface event that's clearly all about Nvidia - but is this also tied to 26H2 release?
• HP announces a new Ryzen-based portable workstation with an interesting detail about unified memory
• Apple announced iPhone 18 Pros, iPhone Duo, Watch 12 + Ultra 4, AirPods 5, and then released its '27 OS updates - And sure whatever

AI

• AI fear-mongering reaches new heights (or new lows): Is this just PR from Big AI to keep the money rolling?
• Bill Gates says Gates Foundation will donate $1+ billion to solve AI inequality
• Big AI could solve the PR problems by actually doing something positive for mankind. Just a thought
• Copilot Work and Copilot Studio get app building capabilities
• Google will bring MCP to Google Home, in early preview now
• Mozilla and Mistral partner on Firefox Smart Window AI

XBOX and gaming

• Gears of War: E-Day and more is coming to Game Pass in the second half of September
• XBOX is going to the Tokyo Game Show and a nice surprise for Kojima fans
• Valve opens up Steam Frame preorders and it's only $1060!
• Amazon Prime Gaming and Luna are having a pretty g26ood September
• Apple is reportedly making an iPhone game controller for some reason

Tips and picks

• Tip of the week: There's a new MSA bypass for Windows 11 Setup
• App pick of the week: Google Dreambeans
• RunAs Radio this week: Patching in 2026 with Susan Bradley
• Brown liquor pick of the week: Art of the Spirits Honored to Serve

Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell

Download or subscribe to Windows Weekly at https://twit.tv/shows/windows-weekly

Check out Paul's blog at thurrott.com

The Windows Weekly theme music is courtesy of Carl Franklin.

Join Club TWiT for Ad-Free Podcasts!
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Sponsor:

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