Microsoft is expected to roll out the 2026 Update for Windows 11 (version 26H2) later this year, marking the fifth feature update for the desktop version of the operating system. However, this release isn't a full operating system swap, but it's still important not to skip it.

In this guide, I'll walk you through 10 interesting facts about Windows 11 version 26H2 to know before upgrading once it becomes available.

Facts to know about Windows 11 version 26H2

These are some facts about the new version for Windows 11.

1. Same operating system platform

Although the company will market Windows 11 version 26H2 as a new release, it shares the same platform as version 25H2, meaning both operating systems are identical under the hood. This is exactly the same case as versions 24H2 and 25H2.

2. Same set of features and improvements

Windows 11 version 26H2 includes the same features and improvements already available in version 25H2. Microsoft isn't introducing a separate feature set for this release because both versions share the same platform.

Perhaps the most noticeable differences between Windows 11 versions 26H2 and 25H2 are their version and build numbers, along with their support lifecycle.

For example, version 26H2 uses build numbers in the 26300 series, while version 25H2 uses the 26200 series. Now, despite the different build numbers, updates for both versions typically share the same cumulative update (KB) number because they are based on the same code and include the same features and improvements.

Microsoft is expected to continue servicing both versions with the same features and improvements for the foreseeable future. As a result, version 26H2 is not expected to introduce major new capabilities at launch. Instead, it serves as another enablement package release that activates a new version number while preserving the same experience users already have on version 25H2.

3. Enablement Package-based installation

Similar to Windows 11 version 25H2, version 26H2 is expected to be rolled out as an Enablement Package (eKB). This means that if you're already running version 25H2, upgrading to 26H2 will be similar to installing a regular monthly cumulative update, without requiring a complete reinstallation of the operating system.

An Enablement Package is a small update that acts as a switch to activate features already included in the operating system but kept dormant. Once installed, it simply changes the version number from 25H2 to 26H2 while enabling the new release (if applicable).

Because version 26H2 shares the same platform and feature set as version 25H2, the installation process is expected to be quick and require only a single restart. As with previous enablement package releases, Microsoft will likely offer the update as an optional installation at first before making it available automatically to eligible devices as version 25H2 approaches the end of its support lifecycle.

4. Full reinstallation upgrade

Although Windows 11 version 26H2 is virtually identical to version 25H2, the upgrade path depends on the version currently installed on your computer.

If you're already running Windows 11 version 25H2 (or 24H2), you can upgrade through the Enablement Package without reinstalling the operating system. However, devices running an older release (such as version 23H2) will need to perform a full feature update to move to version 26H2.

5. Upgrade from Windows 10

If your computer is still running Windows 10, upgrading to Windows 11 version 26H2 requires a full feature update. Compatible devices will receive the latest supported version of Windows 11 directly through Windows Update, so you won't have to install 24H2 or 25H2 first.

If your computer doesn't receive the upgrade through Windows Update, you can also perform an in-place upgrade using Microsoft's installation media.

6. Direct upgrade from older versions

You can upgrade directly to Windows 11 version 26H2 from version 23H2, 22H2, or an earlier release, as well as from Windows 10, using the ISO file or other Microsoft installation media.

These methods perform a standard in-place feature update, allowing you to keep your files, apps, and settings while installing the latest version of the operating system.

7. Upgrade tools trigger a full feature update

Although upgrading from Windows 11 versions 24H2 or 25H2 to version 26H2 through Windows Update only requires installing a small Enablement Package, using the official ISO file or other installation media will perform a full in-place upgrade instead.

The installation still preserves your files, apps, and settings, but it reinstalls the operating system rather than simply activating the new version with the Enablement Package. This results in an unnecessarily longer installation process compared to upgrading through Windows Update.

8. Reasons to upgrade to version 26H2

Since the last three releases of the operating system are virtually identical, the primary reason to upgrade is to extend your device's support lifecycle rather than gain access to new features.

Windows 11 version 25H2 remains supported through October 2027, but upgrading to version 26H2 extends support for another year. As with previous releases, Microsoft is expected to provide 24 months of support for the Home and Pro editions and 36 months for Enterprise and Education editions.

This also means there won't be any urgency to upgrade as soon as version 26H2 becomes available. Because these releases offer the same features and improvements, you can continue using version 25H2 until you're ready to switch. However, you should plan to install version 26H2 before version 25H2 reaches the end of its support lifecycle to continue receiving security updates and bug fixes.

It's worth pointing out that version 24H2 is set to retire on October 13, 2026, and it's recommended to upgrade as soon as possible to the next supported version.

9. Same hardware requirements

Windows 11 version 26H2 does not introduce new hardware requirements compared to version 25H2. The same requirements for supported processors, TPM 2.0, and other system components remain in place.

These are the minimum requirements to install or upgrade to Windows 11:

• CPU: 1GHz or faster processor, or System on a Chip (SoC) with at least two cores.
• RAM: 4GB or more.
• Storage: 64GB or larger storage device.
• Firmware: UEFI firmware with Secure Boot capability.
• TPM: Trusted Platform Module (TPM) version 2.0.
• Graphics: Compatible with DirectX 12 or later with a WDDM 2.0 driver.
• Display: High-definition (720p) display larger than 9 inches diagonally, with 8 bits per color channel.

This means that if your device can already run Windows 11 version 25H2, it will also be compatible with version 26H2 without requiring any hardware changes.

10. Rollout strategy will be gradual

Although the Enablement Package that upgrades Windows 11 from version 25H2 to 26H2 is a small update, Microsoft will likely follow the same gradual rollout strategy used in previous releases.

The company typically uses the Controlled Feature Rollout (CFR) system to monitor the update experience, check for potential compatibility issues, and expand availability over time. As a result, not every device will receive the Windows 11 2026 Update immediately through the Windows Update settings page.

Availability will gradually expand over several weeks or months as the company confirms that the update is ready for a wider range of hardware configurations. If your device doesn't see the update right away, it doesn't necessarily mean there's a problem. It simply means the rollout has not reached your hardware configuration yet.

Windows Central's Take

I think the Windows 11 2026 Update is a good example of how the software giant is changing how it delivers upgrades. A new version number no longer automatically means a major redesign or a long installation process. Instead, the company is leaning more toward smaller transitions that keep computers current with less disruption.

From my experience covering the operating system, I think this approach makes a lot of sense. Full feature updates have historically been among the most complicated parts of maintaining the operating system, often leading to compatibility issues, driver problems, and upgrade failures. By using an Enablement Package model, Microsoft can accelerate the transition, reduce the risk of errors, and make it easier for more users to move to the latest supported version.

This strategy also benefits the company because a simpler upgrade experience could encourage more people to stay on newer versions instead of delaying updates for months or years. When an upgrade takes only a few minutes instead of requiring a complete operating system installation, users are more likely to accept it.

That said, I don't see 26H2 as an update users need to install immediately. If you're already running 25H2, the main reason to move will be support rather than new features. However, I think this is a better direction for the operating system. Making upgrades faster and more reliable could help reduce the problems that have caused many users to delay installing new versions.

What are your thoughts about Windows 11 version 26H2 following the same path as 25H2? Do you prefer smaller, smoother updates, or do you want major new features with every release? Let me know in the comments.

More resources

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Can you hear that? It's the sound of capitalism crumbling. After years of pushback against ads, Microsoft has finally given in and decided to make a cleaner Search experience in Windows 11.

Sarcastic quips aside, Search is genuinely going to improve. Microsoft unveiled a massive upgrade to Search this week that will improve the accuracy of results, shift away from relying on the web, and yes, remove ads and promotional material.

The improved search will prioritize local results over grabbing information from the web. You'll even be able to customize whether web and Microsoft Store suggestions appear alongside local results at all. Search should also be more forgiving of typos, which should reduce frustration.

The upcoming improvements to Search were the biggest Windows 11 story of the week, but several other topics trended as well.

Biggest News of the Week

I'd argue that Windows 11 never should have placed ads within Search in the first place. Certainly, Windows 11 Pro should have been ad-free. I'm glad to see Microsoft listen to feedback and get rid of some ads. I just think it's wild that the tech giant needs to be pushed in that direction.

I'm happy to see Microsoft did more than remove ads and call it a day. The new Search experience is better across the board. Our Zac Bowden was impressed after going hands-on with the feature.

As always with updates like this, you can focus on the fact that Microsoft should have launched Windows 11 in this state rather than be strong-armed into making search usable. Alternatively, you can choose to be happy that Windows 11 is finally getting fixed. I choose the latter.

Shopping with Sean

Laptop deals have cooled off a bit, but you can still save hundreds of dollars on the Samsung Galaxy Book6 or the HP OmniBook Ultra 14. Both are excellent laptops with gorgeous displays and snappy performance.

If you're a gamer, make sure to check out the Xbox Ultimate Game Sale that's now live. Hundreds of games are discounted in what might be one of Microsoft's best-ever sale events.

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Microsoft's July 2026 Patch Tuesday update for Windows 11 is one of the largest security releases we've ever seen, fixing 570 vulnerabilities across Microsoft's products, according to Action1's analysis.

For users, the update arrives as KB5101650, bringing version 25H2 to build 26200.8875 and version 24H2 to build 26100.8875.

The number is certainly eye-catching. Microsoft fixed more than four times the number of security issues compared with July 2025, when the company addressed 137 vulnerabilities.

However, the bigger story is not simply that the company patched hundreds of security flaws. The July 2026 security update is an early example of a major shift Microsoft has already warned about. AI is changing vulnerability discovery, and Windows 11 updates are expected to become larger as a result.

The software giant says that as AI helps security researchers find more issues across more code, customers will see a higher volume of security fixes included in future security releases.

In other words, larger Patch Tuesday updates are not necessarily a sign that Windows is becoming less secure. They are also a sign that Microsoft is finding and addressing more problems before attackers can use them.

Why Windows 11's July 2026 update is so large

The July 2026 update addresses vulnerabilities across many core areas of Windows, including the Windows Kernel, Win32k, NTFS, Remote Desktop, Secure Boot, BitLocker, File Explorer, and more.

Several of these fixes address vulnerabilities that could allow remote code execution, where an attacker could potentially run malicious code on a system remotely.

The scale of the release follows a sharp increase in security fixes throughout 2026.

Here's a comparison based on vulnerability counts reported by Windows Latest and security-tracking data, showing how the number of fixes has increased since 2025.

However, Microsoft says the growing number of fixes should not be interpreted as the operating system becoming less secure. Instead, the company says AI is helping identify vulnerabilities earlier and at a larger scale.

Microsoft is using AI to find Windows vulnerabilities faster

The company has been investing in AI-powered security tools to reduce the time between discovering a vulnerability and protecting customers.

One of those tools is MDASH, Microsoft's multi-model agentic security scanning harness.

MDASH uses multiple AI models and more than 100 specialized AI agents to analyze code, identify potential vulnerabilities, debate findings, and validate whether issues are real.

Unlike a traditional scanner that simply reports possible problems, Microsoft's system is designed to reduce false positives by using multiple stages of analysis and validation.

The company notes that MDASH helped security researchers discover 16 vulnerabilities in networking and authentication components, including critical remote code execution flaws affecting areas such as the TCP/IP stack and IKEv2 service on Windows 11.

Those findings demonstrate how AI can help uncover complex security issues that may be difficult to identify through traditional approaches.

Microsoft has not said that MDASH discovered all 570 vulnerabilities included in the July 2026 update. Instead, the technology represents part of a larger effort to expand the company's vulnerability research capabilities.

Microsoft expects Windows 11 security updates to get bigger

The biggest takeaway from the new approach is that larger security updates are becoming expected. In a recent explanation of its vulnerability management strategy, Microsoft said: "As AI helps defenders discover more issues, customers will see a higher volume of security updates included in each security release."

The company says AI is being integrated into the entire security process, from finding vulnerabilities to helping engineers understand issues, develop fixes, and identify possible regressions.

Microsoft is also using additional validation systems to make sure faster security fixes do not come at the cost of update quality.

The goal is to shorten the time between vulnerability discovery and customer protection while maintaining reliability.

Why users should install updates faster on PCs

As security updates grow larger, Microsoft is also pushing users and organizations to reduce delays before installing them, because attackers are also benefiting from AI.

Microsoft says attackers can now exploit newly discovered vulnerabilities much faster than before, leaving users and organizations with less time to install security updates.

For users, that means monthly updates are becoming more important. While temporarily pausing updates can still make sense if a release causes compatibility problems, leaving security fixes uninstalled for long periods creates unnecessary risk.

The July 2026 update also includes non-security improvements, including Point-in-time restore, Screen Tint, improved Bluetooth reliability, File Explorer improvements, and much more. However, the security changes are the main reason users should prioritize installing it.

Windows Central's Take

When I first saw that Microsoft had patched 570 vulnerabilities in a single Patch Tuesday release, I didn't immediately think Windows 11 had become less secure. Instead, my first thought was that this was exactly the kind of update the company had been preparing users for when it said AI would dramatically increase the number of vulnerabilities it could discover.

I actually think this changes how we should judge Patch Tuesday updates. For years, I've looked at the size of a security release as a rough indication of how much could potentially go wrong after installing it. In the future, that assumption may no longer hold true. A bigger update could only mean that the software giant is finding and fixing more issues before attackers have the chance to exploit them.

That said, Microsoft still has something to prove. Discovering more vulnerabilities is only half the equation. Users will judge this new approach by whether these larger updates remain reliable and don't introduce new issues of their own. If the company can consistently deliver both better security and stable updates, I think that's a tradeoff most users will gladly accept.

Do you think larger Patch Tuesday updates are a good sign for Windows 11 security, or do they make you more cautious about installing updates? Let me know in the comments.

More resources

Explore more in-depth how-to guides, troubleshooting advice, and essential tips to get the most out of Windows 11 and 10. Start browsing here:

• Windows 11 on Windows Central — All you need to know
• Windows 10 on Windows Central — All you need to know

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Microsoft's once popular IRC client "Comic Chat" is being open sourced to celebrate its 30th anniversary. Those who frequented the world wide web in the 90's will likely remember Comic Chat for being a unique experiment into how IRC chatting could be, featuring graphical avatars that presented chats and chatrooms in comic strip form.

Originally developed by Microsoft Researcher David Kurlander and released on August 13, 1996, Comic Chat began life as a research project before morphing into Microsoft Chat and becoming the default chat client for MSN.

"Today, we’re excited to announce the open-source release of Microsoft Comic Chat, the chat client that automatically turned conversations within Internet Relay Chat (IRC) into comic panels featuring illustrated characters, speech bubbles, and expressions, and helped introduce the world to a little font called Comic Sans," Microsoft's Scott Hanselman announced in a blog post today.

"For many people, Comic Chat is a nostalgic artifact from the early days of the internet as we transitioned from technologies like telnet, Usenet, and IRC to the largely visual web that we enjoy today. For others, it’s a legendary piece of Microsoft history they have only heard about in stories, screenshots, and debates about typography. Now, developers, historians, retro computing enthusiasts, and anyone who appreciates a wonderfully unconventional idea can explore the source code for themselves."

Although from the 90s, Comic Chat is still functional as an IRC client today, though most people likely don't use it anymore. Still, with the app now being open source, perhaps developers and tinkerers will be more open to breathing life back into the 30 year old app.

The Comic Chat source code is now public on GitHub for anyone who wants to take a look and compile their own version.

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As part of the Windows Insider Program, Microsoft released several preview builds of Windows 11 in early July 2026, some of which introduced new features and others only improvements for existing experiences.

In the first two weeks of July, the company began the public test of the Cloud rebuild recovery feature, revealed a new design update for the account manager available through the Start menu, and made other improvements for version 26H2

In addition, Microsoft is continuing to expand previously announced features to more Insider channels, including the ability to upgrade from Windows 11 Home to Pro Education for K-12 environments. The company is also rolling out Taskbar position and size options, along with Windows Update improvements designed to reduce the number of required restarts each month.

In the Experimental track, we've seen builds 26300.8772 and 28120.2387, and builds 28020.2380 and 26220.8764 have been released in the Beta channel.

In this recap, I'll highlight the latest and most noteworthy changes available through the Windows Insider Program.

Biggest improvements from the Windows Insider Program in July 2026

In this recap, I'll highlight the latest and most noteworthy changes available through the Windows Insider Program since my last roundup.

Cloud rebuild new feature

Starting with build 26300.8772, Windows 11 introduces a new recovery feature known as "Cloud rebuild," which has been designed to make it easier to reinstall the operating system when the computer is unable to start, or you're looking for a fresh install.

If this feature sounds familiar, it's because it's similar to the Cloud download option in Reset this PC. However, Cloud rebuild introduces a new workflow that downloads the Windows 11 installation files and drivers and performs a clean installation without requiring a bootable USB drive, a custom recovery image, or access to the desktop environment.

Cloud rebuild can be accessed from the Windows Recovery Environment (WinRE) by going to the "Troubleshoot" page and using the "Cloud rebuild" option.

Before you can use the feature, the computer must be running Windows 11 on compatible hardware, and the device must be connected to the internet using a wireless or wired connection.

Once you confirm the Windows 11 version, edition, and language, click "Install," and the system will erase the hard drive and reinstall the operating system and drivers.

Account Control flyout redesign

In the Start menu, Microsoft is also updating the Account Control flyout with build 26300.8772. The new design offers a more modern style that highlights your account information and picture.

It also highlights your Microsoft 365 subscription, cloud storage, and access to your benefits.

Backup and restore default settings

In commercial computers, starting with the preview build 26300.8772, Windows 11 is enabling the backup and restore feature policy by default for devices enrolled in a Microsoft Entra ID or Entra hybrid-joined environment.

The idea is to start the device with backup protection to make recovery smoother. For example, when a device is reset or replaced, users can quickly return to their personalized desktop without extra steps.

Of course, network administrators can always control this experience, and Microsoft notes that existing policies will remain in effect, and manually configured settings always take priority over the default behavior.

Taskbar position settings

The company is also bringing back the ability to change the Taskbar location with the release of build 28120.2387 in the Experimental channel.

This change allows users to place the Taskbar at the top of the screen, as well as at the left or right edges, rather than being limited to the bottom.

The setting appears on Settings > Personalization > Taskbar, under the "Taskbar behaviors" section. The setting is called "Taskbar position."

The company notes that flyouts, tooltips, and animations will follow the Taskbar orientation regardless of the position.

Also, most existing features will continue to work, including the option to ungroup and show labels for apps.

Furthermore, the company is updating the "Show smaller taskbar button" option to make the Taskbar smaller instead of just the buttons. (As we have already seen in other tracks, the company is expected to create a separate option to make the Taskbar smaller.)

Windows Update with fewer reboots

As part of Windows 11 build 26220.8764, the company is introducing a new unified Windows Update experience that coordinates monthly quality updates with driver, .NET, and firmware updates.

By bundling these updates into a single installation cycle whenever possible, Microsoft aims to reduce the number of restarts users experience each month, with the long-term goal of requiring just one monthly reboot.

Windows 11 Pro Education for K-12 free upgrade

Microsoft is changing the installation requirements to allow devices running Windows 11 Home to upgrade to Windows 11 Pro Education at no additional cost for K-12 education.

This change aims to give schools more flexibility when acquiring new devices. However, the company says that this is one-way only. After the upgrade, the only way to roll back to the Home edition is by performing a clean installation of the operating system.

Windows Search upgrades

Outside its regular download schedule, Microsoft recently began rolling out a slew of improvements to the Windows Search experience on devices enrolled in the Experimental channel.

First, the company is decluttering the home screen and focusing on the search experience. As part of this rollout, the Windows Search home screen only includes your recent searches, ditching the visual clutter, including those annoying advertisements.

In addition, when performing a search and a web result is more relevant, the experience will now prioritize the answer rather than products and promotions.

Microsoft is also introducing design tweaks to better indicate where each result comes from. For example, you'll find better spacing between items and interface changes when selecting a result, including thumbnail previews.

Second, you'll now have more control over search results with the options to disable web searches and Microsoft Store apps from appearing in the Windows Search experience.

However, by default, search will work as always. It's up to you to customize your search experience from Settings > Privacy & Security > Search.

Third, the search experience now improves local content and rankings, meaning local results are given higher priority in apps, settings, and files, instead of web and Microsoft Store results showing up first when there are better results.

As part of the ranking tweaks, you'll notice that searches for settings now appear higher in the results.

Fourth, Microsoft is also focusing on improving search accuracy through two specific changes. For instance, Windows Search has been updated to better handle typos, missing or extra letters, and partial words.

In addition, the feature will now show results for local files using two-character file search, and more accurately surface cloud and connected files when they're the best match.

Windows Central's Take

I think these Insider builds show Microsoft focusing on what Windows 11 has needed for a while, improving the experience instead of simply adding more features. Cloud rebuild could make recovery much less stressful, while the Windows Search changes address one of the operating system's biggest frustrations by prioritizing useful local results over web content.

The reappearance of Taskbar positioning is also a welcome change. It shows Microsoft is still paying attention to feedback and bringing back flexibility that many users have missed since Windows 11 launched.

What are your thoughts on these latest Windows 11 Insider changes? Let me know in the comments.

More resources

Explore more in-depth how-to guides, troubleshooting advice, and essential tips to get the most out of Windows 11 and 10. Start browsing here:

• Windows 11 on Windows Central — All you need to know
• Windows 10 on Windows Central — All you need to know

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Microsoft has confirmed that it has blocked the availability of the recent Windows 11 July Patch Tuesday update (KB5101650) on Dell PCs, after Dell reported a number of issues including unexpected shutdowns, overheating, poor performance, and more caused by the preview update that released before it.

The KB5101650 began rolling out on July 14, and includes a number of quality of life improvements and fixes. For most users, this update is issue free, but Dell PCs will find that the update is not available for them currently.

"A limited number of Dell devices might display a yellow exclamation point in Device Manager next to the Intel Innovation Platform Framework Processor Participant driver. These devices can potentially experience unexpected shutdowns, poor performance, increased heat, and battery drain."

This issue applies to both the KB5101650 update that rolled out on July 14, and the optional preview update KB5095093 that rolled out on June 23, on either Windows 11 version 24H2 or 25H2. Dell PCs running either of these updates and experiencing issues should roll back.

The bug in question appears to be caused by the new Windows USB-C Connection Manager interface, with the Intel Innovation Platform Framework Processor Participant driver no longer functioning as intended. "This issue was reported by Dell during testing and identified as an incompatibility between the Intel driver and the new Windows USB-C Connection Manager interface."

Microsoft says that it's working on a fix, and will release a resolution for the PCs that are impacted by this issue soon. The good news is that it appears Microsoft was aware of the problem right away, as the July 14 update was blocked on Dell PCs right out of the gate.

Unfortunately, there was no immediate block on the optional update that released on June 23, meaning some devices may have installed the update that is causing problems. The best course of action in that situation is to simply roll-back to the previous update.

via Bleeping Computer

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If you've been using Windows as long as I have, you probably remember when a serious problem often meant backing up your files and reinstalling the operating system from scratch. Whether it was a bad driver, a failed update, or corrupted system files, a clean install was frequently the fastest way to rescue your computer.

I don't think that's the case anymore. Over the past several years, Microsoft has quietly transformed Windows 11 into a much more resilient operating system. Instead of relying on a single recovery option, the operating system now bundles a collection of tools designed to solve different types of problems. Some can repair Windows 11 while minimizing changes to your data. Others can roll back a problematic update, recover a computer that won't boot, or completely rebuild the system from the cloud.

The downside is that all these options can be confusing. Microsoft doesn't always make it clear which recovery feature you should use first, and many of them sound similar even though they solve different problems.

A lot of the recovery features discussed in this guide are available through the Windows Recovery Environment (WinRE). This separate recovery workspace runs outside the normal installation and provides access to tools that can repair, reset, or troubleshoot the operating system when the computer cannot start normally.

In this guide, I'll outline the recovery features available on Windows 11 and when I would actually use them.

Important: The right recovery option depends mostly on what went wrong. A broken update, a damaged driver, and a corrupted installation all require different approaches.

Fix problems using Windows Update

If the computer still starts normally but something doesn't feel right, I'd try the "Fix problems using Windows Update" recovery option first.

This feature repairs the operating system by downloading the same version of Windows 11 installed on your computer through Windows Update and reinstalling it over your existing installation. Unlike resetting your computer, it preserves your personal files, installed apps, user accounts, and settings.

If system files have become corrupted, built-in features have stopped working, or you're seeing unusual behavior after an update, this repair process can often restore the operating system without forcing you to reinstall your apps afterward.

I like this approach because it's the least disruptive recovery option Microsoft offers. If it solves the problem, you save yourself the time of reinstalling software and reconfiguring the system.

Best for:

• Corrupted system files.
• Missing or broken features.
• General system instability.
• Repairing Windows 11 while keeping apps, files, and settings.

Reset This PC

When repairing Windows 11 isn't enough, "Reset This PC" is usually the next step.

This feature reinstalls the operating system and lets you choose between two options.

Keep my files reinstalls Windows 11 while preserving your personal files, pictures, and videos, but it removes installed applications and resets system settings.

Remove everything wipes the computer completely before installing a fresh copy of Windows 11, making it a good choice if you're selling the device or want to start over.

You'll also choose between "Local reinstall," which uses recovery files already stored on the computer, or "Cloud download," which downloads a fresh copy of Windows directly from Microsoft's servers.

Personally, I almost always recommend Cloud Download. It takes longer because it downloads several gigabytes of data, but it also avoids problems caused by damaged local recovery files.

Best for:

• Severe software problems.
• Persistent performance issues.
• Malware cleanup after backing up your data.
• Preparing to sell or give away the computer.

Cloud rebuild

Cloud rebuild is one of Microsoft's newest recovery tools, and I think it fills an important gap in Windows recovery.

Available through the Windows Recovery Environment (WinRE), Cloud rebuild reformats the operating system partition, downloads a fresh Windows 11 image and compatible drivers from Windows Update, and restores the computer to the out-of-box setup experience.

Unlike Reset This PC, it doesn't depend on the recovery image already stored on your computer, and more importantly, it also includes the device drivers.

To me, this feature sits somewhere between Reset This PC and creating a bootable USB installer. It gives you a completely fresh installation without requiring installation media or another computer to download the setup files.

Best for:

• Severely corrupted installations.
• Failed Reset This PC attempts.
• Damaged recovery files.
• Rebuilding Windows 11 from scratch.

Go Back (rollback)

The upgrade process to a new version doesn't always go smoothly, and that's exactly why "Go Back" exists.

After upgrading to a new version of the operating system on top of an existing setup, Windows 11 temporarily stores your previous installation in the "Windows.old" folder. If the new version introduces compatibility problems, driver issues, or poor performance, you can roll back to the earlier version with just a few clicks.

The only catch is that this option is temporary. The system typically removes the previous installation files after about 10 days to free up storage.

If you notice problems immediately after installing a feature update, don't wait too long before deciding whether to roll back.

Best for:

• Performance problems after upgrading.
• Driver incompatibilities.
• Software compatibility issues.
• Bugs introduced by a feature update.

Uninstall Updates

Not every system update improves the experience. Sometimes a cumulative update can introduce startup problems, driver conflicts, or unexpected bugs.

When that happens, Windows 11 includes an option in the Windows Recovery Environment that lets you remove the latest update without resetting the entire computer.

Using this experience, you can uninstall the latest quality updates (monthly cumulative updates) and feature updates (major version upgrades).

The first option is usually the one you'll use after Patch Tuesday problems.

Best for:

• Device problems after installing an update.
• Boot issues caused by a recent update.
• Update-related stability problems.

System Restore

Some people think System Restore is outdated, but I still think it's one of the most underrated recovery features in the operating system.

System Restore creates restore points that save system files, drivers, registry settings, and installed applications. If something goes wrong after installing a driver or application, you can return Windows to an earlier working state without affecting your personal files.

It's often much faster than resetting the computer and can solve problems in just a few minutes.

Best for:

• Bad driver installations.
• Faulty software.
• Registry changes.
• Recent system configuration problems.

Startup Repair

If Windows 11 won't boot, Startup Repair remains one of the built-in recovery tools designed to fix common startup problems.

Available through the Windows Recovery Environment (WinRE), the tool scans the system for damaged startup files, corrupted Boot Configuration Data (BCD), missing system files, and other issues preventing the operating system from loading correctly. If it finds a problem it knows how to fix, it attempts the repair automatically.

Depending on your recovery configuration, Windows 11 may first attempt newer recovery mechanisms, such as Quick Machine Recovery, before Startup Repair becomes available.

It won't solve every startup issue, but when it works, it can save you from more drastic recovery options like resetting or reinstalling the operating system.

Best for:

• Windows 11 stuck during boot.
• Endless restart loops.
• Missing or damaged boot files.
• Startup-related errors.

Safe Mode

Sometimes Windows 11 itself isn't the problem. Safe Mode starts the system with only the essential drivers and services needed for the operating system to run. That makes it much easier to remove a problematic graphics driver, uninstall recently installed apps, or troubleshoot malware that's preventing Windows 11 from working normally.

If Windows 11 works as expected in Safe Mode but crashes at startup, it's usually a sign that a third-party app or driver is causing conflicts.

Best for:

• Troubleshooting driver problems.
• Removing incompatible software.
• Malware cleanup.
• Diagnosing startup crashes.

Quick Machine Recovery

Quick Machine Recovery is one of the newest additions to Windows 11, and I think it's a direct response to lessons Microsoft learned from major outages like the CrowdStrike incident.

If a bad update or driver prevents Windows 11 from starting, the feature can automatically enter the Windows Recovery Environment, connect to Microsoft's recovery service, download a remediation package, and attempt to repair the problem before you ever reach the desktop.

Ideally, you'll never have to think about this feature because it works automatically behind the scenes. If the automated recovery isn't successful, you can continue troubleshooting using the other recovery options available through the Windows Recovery Environment.

Best for:

• Startup failures caused by updates.
• Driver-related boot issues.
• Automatic recovery without user intervention.

Point-in-time Restore

Point-in-time Restore is another piece of Microsoft's evolving recovery strategy.

Rather than asking users to troubleshoot a failed Windows Update manually, Point-in-time Restore is part of Microsoft's effort to make Windows Update failures easier to recover from automatically.

A lot of people may never notice it working, but that's exactly the goal. The more the system can recover automatically, the less often users need to search for recovery guides or perform clean installations.

Best for:

• Failed system updates.
• Rolling back to a previous working update state.
• Automatic update recovery.

Other details

This guide focuses on Windows 11 features that can restore the operating system to a known working state or help troubleshoot problems preventing the system from working correctly. However, the operating system also includes other recovery-related tools that serve a different purpose.

The Windows Recovery Environment (WinRE) is the workspace where many of these options are available, including Startup Repair, Reset This PC, System Restore, Cloud rebuild, and other troubleshooting tools. It does not repair Windows 11 by itself. Instead, it provides access to the features that can recover the operating system.

The Recovery Drive works in a similar way. It does not fix the setup directly. Instead, it creates a bootable USB drive that lets you access WinRE if the built-in recovery options are unavailable.

Other tools, such as Command Prompt, Startup Settings, and UEFI settings, are designed for advanced troubleshooting. They can help diagnose and manually repair problems, but they do not automatically restore the operating system.

Also, the Windows Backup app is part of the recovery experience, but it serves a different purpose. Instead of repairing a broken installation, it helps restore settings, credentials, Microsoft Store apps, and files stored in OneDrive after reinstalling Windows 11 or moving to a new computer.

The legacy Backup and Restore (Windows 7) tool is still available on Windows 11 and can create file backups and full system images. Unlike newer recovery features such as Reset This PC or Cloud rebuild, it relies on a backup created ahead of time. If you have a system image available, you can use it to restore the computer to a previous state, including the operating system, apps, settings, and drivers.

However, Microsoft has shifted toward newer recovery experiences that rely more on Windows Update, cloud services, and automatic repairs.

Windows Central's Take

After covering the operating system for more than two decades, I think Microsoft has finally addressed one of the biggest weaknesses: recovery.

The company has built a much more complete safety net into Windows 11. However, these tools only matter if they work when users need them most. A failed update, broken driver, or corrupted system file can still leave people searching for answers because the recovery experience isn't always predictable.

What I find interesting is that Microsoft didn't replace older tools like System Restore or Safe Mode. Instead, it kept building on top of them with newer experiences such as Cloud rebuild and automatic recovery features. The result is a layered recovery system that makes Windows 11 far more resilient than previous versions.

The next challenge isn't creating another recovery feature. It's making the existing ones easier to understand. If the operating system can better recognize what's wrong and automatically recommend the right recovery path, most people may never have to wonder whether to use System Restore, Reset This PC, or Cloud rebuild.

That's the direction recovery should continue moving toward, with less troubleshooting, fewer reinstalls, and more automatic repairs that keep people productive.

Have you ever had to use one of these Windows recovery features? Which one helped you get your device back up and running? Let me know in the comments.

More resources

Explore more in-depth how-to guides, troubleshooting advice, and essential tips to get the most out of Windows 11 and 10. Start browsing here:

• Windows 11 on Windows Central — All you need to know
• Windows 10 on Windows Central — All you need to know

Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.

This week, Microsoft unveiled a major overhaul coming soon to Windows 11's search experience that's designed to fix its biggest flaws and criticisms. For a long time, many have agreed that search on Windows is pretty much broken, but the new changes that are now in testing may finally be fixing that problem.

I've been testing the new Windows Search out over the last two days, and I'm very impressed with the new experience. Right off the bat, the search pane is no longer a noisy mess of Bing ads and sponsored content. It's a clean list of recent searches, exactly what you'd expect from a search pane.

Search items that appear in this list are categorized so that you know whether an item is an app, document, setting, or web search. Hovering over items in this menu will display options depending on the type of item it is, such as apps which present the option to pin it to the Taskbar or run as an administrator.

You can also right-click on any of the items in the search pane for more info, which displays additional options such as uninstall or app settings, open file location, as well as the ability to remove the item from the recents list.

Getting onto the actual searching experience, it's a major step up. The UI is nice and clean, and web results now pretty much never show up at the top unless you are actively searching for a website or query that makes sense for a search engine. In the old Window Search, searing for "windows central" would always bring the Bing result to the top, but now it prioritizes my local files and folders.

When a web result does appear at the top, you'll no longer see any ads or sponsored content in that result. The Bing results are now ad-free, showing only results that relate to your search query, which is amazing. You no longer have to worry about accidentally clicking on a link or app that has paid to be there.

I also find that search results are now more accurate based on how you use your system. For example, on a PC where I have both the Photos and Photoshop app installed, typing "photos" actually surfaces Photoshop, which is what I want. I believe this is happening because I've never opened the Photos app on my PC before, and so Windows assumes that I'd want to use the app I use more often or most recently.

To test this theory, I ran Photos a few times and then typed "photos" again, and sure enough the Photos app was now appearing above Photoshop. To triple confirm, I started opening Photoshop a few times, and Photoshop became the top result for "photos" after.

This is great for those who have a system set in place where all the apps they ever use are already in full circulation on their PC. Windows knows which apps you use most, and will now do its best to position them as a best match when it thinks you're searching for it, listing follow up results below it that you can manually select if that's what you need instead.

I also find that search is now a little smarter and more dynamic. If you don't know the name of an app, you can search for a category and Windows will do its best to surface an app that it thinks can do that job. For example, if I type "video editor" into the search box, Windows surfaces Clipchamp as a result, as that's the only video editor I have installed.

Windows Search now also does a much better job at surfacing settings that you might want to configure. If I type "temp" it'll show delete temporary files, or if i type "wifi" the wi-fi settings page is at the top. Even things like "insider" now correctly surface the Insider settings page. You can now pretty much search for any Windows Setting and have it accurately appear in the search pane, without needing to open Settings first.

Some settings even have configurable options within the search pane. For example, typing restart PC will show a setting to do so right from search, which then lets you select whether you want to restart or shut down. It's pretty neat, though most people will probably find it faster to just do that from Start.

Overall, these new search improvements are a real strong step in the right direction. In my brief testing, I've not really been able to fault it, and understand why the best match results are what they are. Being able to turn off things like Microsoft Store and web results are also a great addition, letting you craft your experience into whatever you need it to be. If you only ever want local search results, you can make it so.

It's clear that even in its default state now, local results are the number one priority. Unless your search query is clearly one intended for a search engine, Windows will more than likely place a local result as a best match, which is going to address the biggest complaint most people have with Windows Search.

These improvements are rolling out now in preview for Windows Insiders, with general availability expected later this year.

Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.

Windows 11's monthly Patch Tuesday update is here, and it's one of the biggest of the year. In addition to the usual group of bug fixes and security updates, the July Patch Tuesday update includes some major new features.

Our Mauro Huculak broke down the 13 features that matter most from Windows 11's July 2026 update. The update is substantial and includes new ways to recover your PC, improve accessibility, and update Windows.

As is normally the case for Windows 11 Patch Tuesday updates, we've known what was on the way for weeks. Microsoft rolled out the latest features and changes to Windows 11 through a preview update toward the end of last month.

Ironically, the biggest change in this update is that it will allow you to pause updates indefinitely. Starting with this build you can stop your PC from getting updates for up to 35 days and then re-pause updates.

The downside is that you have to manually pause updates again if you want to stop them for more than 35 days.

Point-in-time Restore is another big addition. The feature lets you roll back a system to a previous working state. Windows 11 automatically creates restore points that include settings, files, and apps.

Widgets are better following the update as well. You now have greater control over notifications and personalization settings. Opening the widgets panel will open the dashboard on first use.

The full release notes for the update are shared in a Microsoft support document and listed below.

Windows 11 July 2026 Update (gradual rollout)

• [Point-in-time restore for Windows] New! This flexible recovery feature helps you quickly roll back your PC, including apps, settings, and personal files, to a recent automatic restore point. It helps reduce downtime and simplifies troubleshooting when issues occur. To learn more, see Point-in-time restore for Windows.
• [Windows Update] New! A calendar experience in Windows Update Settings (Settings > Windows Update) lets you pause updates by choosing an end date, for up to 35 days. You can extend the pause by selecting a different end date and re‑pause updates as needed. For more information, see Pause updates in Windows.
• [Widgets] New! A quieter, more focused Widgets experience helps reduce interruptions and improves default settings and notification controls:
  • Reduce distractions: Widgets no longer open on hover. Notifications and taskbar badges are minimized by default.
  • Simpler: Open to the Widgets dashboard by default on first use.
  • Customize: Configure Widgets how you want by selecting Settings in the navigation bar, then changing any of the default settings.
  • Stay informed: Dashboard icons show the number of alerts, and badges clear automatically when you leave a dashboard.
  • Adjusted defaults: Some default settings are preserved based on usage, while others adjust to reduce interruptions.
  • Performance improvements: This update provides improved reliability, responsiveness, and visual quality across the Widget experience.
• [Accessibility] New! This update makes your screen easier to see and customizes your zoom experience:
  • Screen tint: Apply a full-screen color overlay to help reduce eye strain and improve readability. Choose from preset tint options, adjust the intensity, or turn it on automatically. Find this feature in Settings > Accessibility.
  • Magnifier: Enter a zoom percentage directly and change it in increments in the Magnifier window for more precise, flexible control.
  • Magnifier settings menu: You can now also modify zoom increments directly from the magnifier bar instead of navigating to Windows Settings each time.
• [File Explorer]
  • New! When you hover over a file in File Explorer Home, commands such as Open file location and Ask Copilot appear as quick actions. This experience is now supported for work and school accounts (Entra ID).¹
  • Improves the speed and performance of File Explorer launch.²
  • This update improves File Explorer responsiveness when mounting disk images.
  • The address bar now supports paths containing double backslashes and quotation marks (for example, C:\\Users\\user or "C:\Users\user"), improving compatibility with a wider range of inputs.
  • The address bar suggestion dropdown is more reliable and now consistently closes after an item is selected.
  • This update addresses an issue on File Explorer Home where OneDrive files could appear duplicated in the Favorites section.
  • This update includes several refinements to the Rename experience:
    • Addresses an issue where text was repeatedly selected when renaming items in folder views.
    • Addresses an issue where case-only name changes were not immediately reflected in folder views for items stored locally or in the cloud.
• [Bluetooth] This update improves reliability and performance when connecting to and using Bluetooth devices:
  • New! Windows now keeps the microphone mute state in sync between the audio mixer and the Hands-Free Profile (HFP) for a more consistent experience with Bluetooth headphones with mute buttons or indicators.
  • Accessory compatibility workarounds: Improves compatibility with specific Bluetooth audio devices, helping AirPods appear faster in pairing mode and improving microphone reliability on Beats Studio Pro headphones.
  • Bluetooth audio stability:
    • Improves overall Windows stability with certain PC manufacturer drivers (error code 0x9F).
    • Improves Bluetooth reliability for voice calls when using Classic Audio devices with the Hands-Free Profile (HFP).
    • Reduces time for LE Audio accessories to start playing audio while using the microphone.
  • Device management: Windows will no longer show a “Remove failed” message when attempting to remove Bluetooth devices if the Bluetooth radio is unavailable or has changed since pairing.
  • Settings experience: Improves stability when using the Bluetooth & devices settings page for a smoother, more consistent experience.
  • Connection reliability and responsiveness:
    • Reduces the time it takes for classic Bluetooth audio devices to reconnect after Windows resumes from hibernation.
    • Improves reliability when LE Audio accessories disconnect, such as when another device (for example, a phone) connects.
    • Improves reliability of LE Audio streaming after a connection is lost and restored.
• [Bluetooth and Phone Link] This update improves audio routing for calls made through a connected phone:
  • When an outgoing call is dialed from a paired phone, audio remains on the phone while ringing and transfers to the PC only when the call is answered from the PC.
  • When Do Not Disturb is enabled on Windows, incoming call audio from a paired phone no longer rings on the PC.
• [Voice access and voice typing] **New!**⁠ You can now use voice access and voice typing in French, German, and Spanish. As you speak, your PC improves your text in real time. It corrects grammar, punctuation, and recognition errors, and helps improve clarity—even in the presence of background noise. This makes dictation smoother and reduces the need for manual edits.³
• [Audio] This update improves the reliability of the inbox HD Audio driver.
• [Taskbar] This update improves the reliability of opening the Start menu when selecting the left edge of the taskbar when the icons in the taskbar are left-aligned.
• [Networking]
  • This update includes networking improvements for virtualized environments. Confidential Virtual Machines (CVMs) now use SR-IOV hardware acceleration by default for improved network throughput, and a configuration issue in nested Hyper-V virtualization network setup has been corrected to ensure reliable VM network provisioning.
  • This update improves the reliability of the Windows networking stack. It reduces bug checks (blue screen errors) related to Wi-Fi power and improves cellular (WWAN) connectivity, including support for IPv6 VPNs. Compatibility with third-party VPN software and SR-IOV configurations on server hardware is also improved. Network adapter settings and bindings are now preserved across OS upgrades.
• [Printing] New! New printer installations use Internet Printing Protocol (IPP) by default when supported, simplifying setup and improving reliability. For details about third-party driver deprecation, see End of Servicing Plan for Third-Party Printer Drivers on Windows. To control this behavior, use the toggle in Settings > Bluetooth & devices > Printers & scanners > Default install printers using Windows Ready Print. For more information, see Introducing Windows Ready Print and modernized driver selection. For more information, see Introducing Windows Ready Print and Modernized Driver Selection.
• [Windows Subsystem for Linux (WSL)] The update improves usage of WSL in mirrored networking mode with VPNs.
• [Display and graphics]
  • Improves the reliability of rendering content while scrolling for certain apps spanning across multiple monitors.
  • Improves the reliability and persistence of applying color profiles.
• [Location services] This update changes how some location settings are displayed in Settings > Privacy & Security > Location to help with clarity. When location services are turned off, settings like Default location and Allow location override don't immediately apply, since location information is not given to apps or services. These settings will now be greyed out when location services are off to reduce confusion over when they take effect.
• [Search] This update improves the reliability of setting Search related group policies.
• [Input]
  • New! You can now customize the size of the right-click zone in Settings > Bluetooth & devices > Touchpad. Choose from default, small, medium, or large to control how much of the bottom-right corner responds to a single-finger right-click. This setting is only available on touchpads with a pressable surface. If your device manufacturer provides customization through their own app, a Custom option will appear to reflect those settings.
  • This update improves recognition of English characters when using Japanese handwriting.
• [General performance] Improves the time to shut down Background Intelligent Transfer Service (BITS) when you turn off your PC.
• [General Reliability] This update improves the reliability of explorer.exe. It addresses issues on the login and lock screens related to third-party credential providers, reduces the probability of taskbar icons appearing as blank gray placeholders, and improves navigation to Home in File Explorer during OneDrive sync. It also improves explorer.exe reliability when switching between desktops, enhances app launch with shell extensions, and using acrylic blur effects in the Start menu, Settings, and the lock screen.
• [Apps] Resolves an issue where some installers and applications could show unexpected elevation (UAC) prompts after installing KB5089549.
• [Remote Desktop] This update refreshes the dialog design when you enable Remote Desktop in Settings > System > Remote Desktop.
• [Graphics Kernel] Improves memory-management policy that allows PCs with more than 32GB of installed memory to run larger local AI models.

Windows 11 July 2026 Update (gradual rollout)

• [Secure Boot] With this update, Windows quality updates include additional high confidence device targeting data, increasing coverage of devices eligible to automatically receive new Secure Boot certificates. Devices receive the new certificates only after demonstrating sufficient successful update signals, maintaining a controlled and phased rollout.
• [Authentication] This update improves Netlogon secure channel connections between domain controllers, enabling successful connections from member servers to domain controllers set up before 2025.
• [Emoji Panel Update] The emoji panel (Windows key + period (⁠.⁠)) now uses GIPHY for GIF content following the deprecation of Google’s Tenor API. Starting June 30, 2026, install the latest Windows update to continue using GIFs in the Emoji panel. If you don’t update, you will see a "GIF service is not available" error in the panel. Installing the latest Windows update will restore access to GIFs.
• [Networking] This update improves how your device connects to shared network resources. Connections used by apps and system features, such as the NetUseAdd function, now work more reliably, including unauthenticated (null session) connections.
• [Recycle Bin (known issue)] Fixed: This update addresses an issue where the confirmation dialog might display an internal Recycle Bin file name instead of the original file name when permanently deleting a file. This issue might occur after installing the June 2026 security update (KB5094126).
• [Storage] This update improves disk space usage for the CapabilityAccessManager.db-wal file.
• [Taskbar] This update improves notification badge display across your apps. Notification counts and badge visuals now update correctly, helping you stay up to date with new activity.
• [File Explorer] This update fixes an issue where the OneDrive shortcut in File Explorer stops working when File Explorer is run with administrative mode.
• [Notification badges (known issue)] Fixed: This update addresses an issue where notification badge counts for some applications such as Microsoft Teams and WhatsApp, might not refresh correctly. As a result, badge indicators might continue to display outdated notification counts until the application is restarted or badge count is refreshed.

You can download this month's Patch Tuesday update through the Windows Settings app. Clicking the "Check for updates" button within the "Windows Update" section should start the process.

Alternatively, you can download the update through the Microsoft Update Catalog.

Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.

It's hard to find AI optimists these days.

AI-adjacent stocks have taken a battering in recent months, with Oracle and Microsoft particularly hard hit. Microsoft's stock is down over 20% from last summer's highs, as investors increasingly worry that the firm has over-extended and misjudged the opportunities therein.

Wider questions remain about the future viability of the tech. Cheaper Chinese models are pressuring the big U.S. hyper-scalers to find new efficiencies and strategies, as firms like OpenAI, SpaceX, Palantir, and Anthropic struggle to justify their more optimistic valuations. Some of the more dire warnings suggest the rife circular investments and financing could implode, threatening not only the associated companies, but potentially the entire global economy.

Recently, I caught up with Ed Zitron, head of EZPR and the Better Offline Podcast, who has become a prominent journalistic voice in AI analysis. Zitron's industry-leading tech newsletter Where's Your Ed At has become a primary source for those navigating the complex (and shady?) financial deals these companies are weaving, cutting through the industry hype with an oft-times scathing dose of reality.

I asked Zitron specifically about Microsoft's bets in this space, as the hype train objectively begins to lose steam.

Microsoft occupies an odd space in the "AI race," if you can still call it that at this point. Why do you think Wall Street and the stock market are rewarding Google but punishing Microsoft this year?

"It’s because Microsoft is uniquely awful at having to prove its worth outside of financials, and is run by some of the most decrepit, disconnected, and directionless leadership I’ve seen in any company I’ve ever monitored.

Whenever this company has to beguile investors, it can usually just throw up big money numbers and raise the price on Microsoft Office. This time it made the mistake of actually spending cash — and man, did AI save its ass from humiliation by distracting from its Activision-Blizzard acquisition! — on something, and doing so in the loudest way possible, because saying “AI” and spending lots of money on AI was all it took to make people buy your stock.

Sadly, $200 billion or more in capex in, Satya Nadella doesn’t really have a compelling answer as to where this money is going. He mentioned on their last earnings that they’d hit a $37 billion run rate for AI - around $3 billion a month in revenue, with the vast majority of that being OpenAI’s compute spend — and it didn’t get anybody hot and heavy, so the stock has kept tanking."

"This is also because Azure has been a much bigger business than Google Cloud.

Sundar Pichai is also better at the financial tricks than Satya Nadella, and worked out a way to make circular financing more conspicuous, selling Anthropic its own chips and then getting those chips put in Google data centers so that it can get the revenue from Anthropic, who it funds, buying compute. That huge bump in remaining performance obligations was, to be clear, mostly from circular financing.

I have no idea why Satya didn’t do this with OpenAI’s spend, and I have to wonder if he doesn’t start being really blunt about how much it’s boosting Azure revenue, even though that’ll probably work to his detriment.

Anyway, Google Cloud is a younger and smaller business and thus much easier to show explosive growth in. Satya is also not very good at marketing."

Do you think Microsoft will realistically see any long-term return on investment from its data center build out? Have they completely misjudged the potential?

"So, this depends on your definition of “ROI.” I think that, long-term, this will be seen as a disastrous, horrifying misallocation of capital, the kind of thing that will potentially get Satya Nadella fired.

In the short-term, Nadella got “ROI” out of AI in that it kept Microsoft interesting, and OpenAI’s compute spend buoyed Azure’s revenues without them ever having to disclose AI’s actual contribution. It was a shiny object to show investors, which gave them a vague sense of growth.

This was always a gamble, and because Microsoft started the era, it will inevitably be harmed the most by it.

No, I do not see any ROI at scale. Microsoft has spent over $200 billion on AI capex and will probably spend anywhere from $300 to $400 billion if it continues its pace past this year. It will need to make more than $500 billion in brand, spanking new revenue, in a very conspicuous way, to make any of this feel worthwhile."

"The problem they face is that the longer this goes on, the less incremental it can be. Showing modest growth in Intelligent Cloud and Business & Productivity isn’t going to make this problem go away.

The other is that the clock starts the second they stop spending on capex, and that includes a cut of anything more than 30%. Maybe they try and spread it out, but at some point they’re gonna have to stop, because this is a ludicrous expense.

But once they do, the street will start asking them to prove that they didn’t just nuke hundreds of billions of dollars and take on a bunch of debt for no reason.

I will say this: Amy Hood is very good at her job, and likely the only reason Satya Nadella hasn’t blown up the entire company."

Microsoft's early investment in OpenAI was initially hailed. In your research, how has that partnership panned out? Reporting suggests it hasn't gone well …

"At first, OpenAI must have seemed like the best thing that happened to Microsoft since it won that antitrust trial because the judge talked to the media. It was the single-most buzzy company in the world, and it had to spend money on Azure.

Satya Nadella could say that he had backed the next big tech titan, all while capturing the entirety of its value and cloud spend. The original deal - owning all the IP, making Azure their only cloud provider, all that stuff was a masterstroke.

Except it’s very obvious that something went sour there in 2024 or early 2025, likely when OpenAI demanded Microsoft build more compute than it wanted to. It must have also become clear that owning all of OpenAI’s IP and models and being able to power their services with it wasn’t actually helping Microsoft enough to justify the capex, so they got desperate and bought Mustafa Suleyman’s crappy little company so he’d bring that DeepMind magic to Microsoft."

"Also, Sam Altman very clearly started making demands that were effectively “change the agreement to our benefit for no apparent reason,” and Microsoft embarrassed themselves making any concessions for him. I think that Satya had assumed he had full control of Altman, and when that wasn’t apparent, I think it weakened both his and Microsoft’s position.

And, if I’m honest, Microsoft has embarrassed itself with AI - substandard models, lots of noise but not a lot of actual stuff, running GitHub Copilot at a massive loss for several years, then turning on token-based billing and creating a bunch of bad blood for no measurable gain?

The partnership was great when Satya had control, and the moment he let Altman buy compute from other companies was the moment he lost it, even though it was absolutely the right thing to do."

Windows users have backlashed pretty hard against some of Microsoft's AI products, including things like random Copilot buttons and Windows Recall. Do you see Microsoft finding any realistically good and viable uses for LLMs?

"Nope! I don’t remember the last time that Microsoft made anything that was both new and good, and every “idea” that Microsoft has is literally somebody else’s! Copilot Cowork is Claude Cowork, GitHub CLI is Claude Code, Scout is Codex or some other agentic crap; it’s all the same thing in the glossy Microsoft wrapper that used to mean “good but expensive” but now means “weird and sterile.”

This is not a product company, and the only thing they seem to be able to do with talent is lay it off. Nobody wants anything they’re selling other than for the products they like to work like they used to. If I surveyed 100 people about what they’d change about Microsoft, I bet at least 30% of them would say “remove Copilot.”

For that to change would require Microsoft to make a completely different product."

What do you think the AI landscape will look like in 5 years, if you had to predict?

"These are all guesses, and I can’t append them to any time period. I’m pulling them out of thin air — I can’t see the future! Nobody can! These are things that could happen far more than they are for sure events.

1. LLMs are gone from the cloud other than for obscure GCP/Azure/AWS instances with AI GPUs for people doing very specific things, all of which cost way too much to do regularly.

Whatever LLMs survive are a boring on-device situation you run on a $100k workstation, and that’s not very common because they’re pretty expensive. That being said, this might also be what happens to the large amounts of GPUs that are left for dead after the bubble pops.

2. Eventually, the big labs have to start doing aggressive cost cuts, which up usage but up costs, or cost increases, which destroys usage. Either way, growth is slowing because of token-minimizing, and it’ll accelerate and eventually break the companies."

"OpenAI dies or gets absorbed into Microsoft, who jacks up the prices and unwinds the business. The same happens to Anthropic, which likely becomes a much smaller company that’s effectively a subsidiary of Google and Amazon.

3. Microsoft does a $5bn-$10bn write-down of GPUs and Nadella is booted in favor of Amy Hood. Maybe more!

4. The software industry enters a prolonged depression within the next few years because growth starts to stumble in one of the major hyperscalers. Remember: Anthropic and OpenAI are currently boosting the revenues of Microsoft, Google and Amazon, to a level that I really should look into!

5. NVIDIA’s revenues eventually return to the 2023 era, single-digit billions of dollars annually. I also expect some sort of write-down on their side too."

A huge thanks to Ed Zitron — now it's your turn

Thanks a ton to Ed Zitron for joining us on this piece. Be sure to check out Ed Zitron's podcast and newsletters here; both are full of incredible research and insights into the AI biz more recently, but also tech in general.

Often when I'm writing about AI, I feel like the big players are gaslighting me into believing that the tech is good enough to solve all of humanity's problems, if we'll just hang on and accept a little bit more (a lot more) compute. While it seems AI does have a role to play in parsing large quantities of data and tracking anomalies humans might miss, the "hyperscale" opportunities increasingly seem far-fetched and vague as we head through the current cycle.

Where it all ends up remains anyone's best guess. Perhaps some kind of incredible breakthrough will give AI the nuance and accuracy it needs to actually be a viable general-purpose assistant — rather than an expensive mimicry and content theft machine.

Perhaps its pairing with robotics will enable real opportunities that have so far eluded the big corps. Or perhaps the simple truth is: there's no real room for optimism here. Perhaps we've all been conned by something that seems suspiciously capable on the surface, until you actually put it to any form of real work.

What do you think? Hit the comments, let's talk.

Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.

Microsoft’s latest sustainability report sparked claims that the company produced 34 million metric tons of carbon emissions in a single year. That figure was never reported by the company. What the report actually shows is a 25 percent year‑over‑year increase driven by AI datacenter expansion and Microsoft’s decision to stop buying unbundled renewable energy certificates.

The Microsoft Environmental Sustainability Report shows a complicated progression of rising emissions caused by AI datacenters, controversial "greenwashing" tactics, and enough wiggle room to leave space for debate.

Real emissions vs estimated emissions

When I first read the coverage surrounding the Microsoft Environmental Sustainability Report, it seemed like a clear case of AI hurting the planet and a tech giant callously damaging the environment. I was ready to write a piece calling out Microsoft for setting carbon neutral goals and then increasing carbon emissions by 25% in a single year.

But as I do with any story I cover, I went to the source material and did some digging. What surprised me is that the Microsoft Environmental Sustainability Report does not indicate unbridled burning of fuel to power AI datacenters. Instead, it shows efforts to reduce emissions and make meaningful changes.

I want to be clear, AI datacenters do create high carbon emissions. Microsoft is not faultless when it comes to energy use or pollution. I think there is a lot more the company could do to help the environment. I also think there's some misunderstood data seeping onto social media and throughout the web.

The above chart from the Microsoft Environmental Sustainability Report shows Microsoft's actual reported emissions over the years and the estimated emissions without select interventions. The footnote on the chart directs to a clarifying statement on the estimate. I'll include the full footnote here but highlight the most relevant text:

"The solid line represents Microsoft’s reported greenhouse gas emissions (Scopes 1, 2, and 3) for FY20–FY25, prepared in accordance with GHG Protocol and management’s criteria, and uses a market-based emissions approach. The dotted line represents an illustrative counterfactual scenario of estimated emissions had select, discrete carbon reduction initiatives not been undertaken. These initiatives include energy efficiency improvements for XBOX consoles, renewable energy purchases, sustainable aviation fuel (SAF) and sustainable marine fuel (SMF) certificates, and supply chain decarbonization of Surface devices. The difference between the two lines is an estimate of emissions avoided through these specific initiatives relative to a scenario without those initiatives occurring. This estimate is directional in nature, does not represent the full scope of Microsoft’s decarbonization efforts, and is not part of our reported greenhouse gas inventory. It should not be interpreted as a comprehensive measure of total emissions reductions or as additive to other carbon reduction or removal claims."

Basically, the chart shows Microsoft's actual emissions and then a rough estimate of how much the company would have emitted had it not taken steps to reduce its carbon footprint. But Microsoft did take those steps. Microsoft did not have 34 million metric tons of carbon emissions in the last year. The actual emissions figure is 20 million metric tons.

That's still a massive amount of emissions, and 20 million metric tons is a 25% increase year-over-year, but there's some needed context.

What are unbundled renewable energy certificates?

Microsoft's carbon emissions increased by 25% in a single year. The increase was driven primarily by Microsoft's expansion of datacenter infrastructure and the fact that the company paused the purchase of unbundled renewable energy certificates.

In February 2025, Microsoft announced that it "ceased purchasing non-additional, unbundled renewable energy certificates." That decision led to the massive jump in emissions seen in the recently published sustainability report (in conjunction with AI datacenter infrastructure expansion).

Renewable energy certificates (RECs) represent the legal ownership of the "renewable-ness" of generated electricity. Unbundled RECs are sold separately from the electricity itself.

The United States Environmental Protection Agency notes that "Unbundled Renewable Energy Certificates (RECs) refer to RECs that are sold, delivered, or purchased separately from electricity. RECs provide no physical delivery of electricity to customers and as such the customer is purchasing power from a separate entity than the one selling them the REC."

The separation of generated electricity from the legal ownership of the "renewable-ness" is controversial (that phrase comes straight from the EPA).

Many, including myself, view unbundled RECs as a form of greenwashing. Microsoft or any other company can legally say they are powered by renewable electricity without actually using the electricity that was generated.

The defense is that buying unbundled RECs financially contributes to the development of renewable energies.

Microsoft did not refer to unbundled RECs as a form of greenwashing, but its statement is telling:

"While we continue to apply the carbon fee to investments in emissions reductions, we have ceased purchasing non-additional, unbundled renewable energy certificates. We are refocusing the use of these funds on more long-term, higher-impact investments across carbon reduction, carbon removal, and clean electricity procurement. These interventions are expected to more effectively help us achieve our goal of becoming carbon negative by 2030 and may take us out of carbon-neutral position."

Microsoft implied that unbundled RECs are not the most effective way to have a long-term positive impact on the environment.

The rest of the report

The Microsoft Environmental Sustainability Report is 65 pages of dense information. It links to several external resources as well. If it were a paper report, there'd be a good joke here about an environmental report killing so many trees.

A large portion of the report is dedicated to discussion about Microsoft's use of water, which is a critical component of its environmental strategy. Notably, Microsoft replenished more water than it withdrew in the year.

Because of the size of the report, I've focused on the carbon emissions of Microsoft, but I suggest people read the entire report to get perspective on what's being done and where Microsoft still falls short.

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