Detailed Summary of Windows Weekly Episode 930: Flocculation & Saponification

Release Date: April 30, 2025
Hosts: Leo Laporte, Paul Thurrott, Richard Campbell

Introduction

In Episode 930 of Windows Weekly, hosts Leo Laporte, Paul Thurrott, and Richard Campbell convene from diverse global locations—Mexico City, Melbourne, and their respective homes—to discuss the latest developments in Microsoft and the broader technology landscape. The episode delves into Microsoft's telemetry practices in Windows 11, the company's stance on defending EU enterprises against U.S. government demands, recent earnings reports, the rollout of a new Xbox game titled "Tower Born," and personal anecdotes involving whiskey tastings.

Microsoft Telemetry and Privacy in Windows 11

Paul Thurrott initiates a discussion on Microsoft's evolving approach to telemetry in Windows 11, referencing Dave Plummer’s recent insights. He highlights Microsoft's transition to free operating system upgrades, a strategy aimed at unifying the user base and overcoming the hesitancy of mainstream users to upgrade due to past reliability issues.

Key Points:

• Purpose of Telemetry: Thurrott explains that Microsoft's telemetry is designed to enhance system reliability by anonymously collecting data on software performance. This helps identify and address widespread issues efficiently.
• Privacy Concerns: While acknowledging the apprehensions surrounding telemetry, Thurrott asserts, “[If] you think Microsoft is lying about telemetry, you should not be using Windows at all” ([11:55]).
• Enterprise vs. Consumer Telemetry: Richard Campbell notes that enterprise environments often block telemetry, potentially masking systemic issues that only surface in consumer setups ([06:53]).

Notable Quote:

Paul Thurrott [11:55]: "If you think Microsoft is lying about telemetry, you should not be using Windows at all."

Advertising in Windows

The conversation shifts to the increasing presence of advertisements within Windows applications. Paul Thurrott draws parallels with platforms like Notion and Substack, emphasizing Microsoft's broader monetization strategies.

Key Points:

• Integration of Ads: Thurrott critiques the introduction of more intrusive ads in Windows, moving beyond modest placements to more prominent displays within the operating system.
• Comparison with Other Services: Richard Campbell points out that enterprise versions of Windows often remain free from such advertising clutter, contrasting them with consumer-facing editions ([07:49]).

Notable Quote:

Paul Thurrott [07:49]: "They push you to Edge even when you very explicitly say, yeah, I actually want to use this other browser, but I don't feel like Windows is fully on the dark side yet."

Windows Update Issue: inetpub Folder

A pressing concern arises from a recent Windows update that inadvertently created an inetpub folder in the root directory. This issue sparks confusion and frustration among users, prompting a critical examination of Microsoft's update practices.

Key Points:

• Mystery Folder Creation: Leo Laporte describes the unexpected appearance of the inetpub folder, which is part of a security update ([16:35]).
• Microsoft’s Explanation: The update requires the folder to remain intact to ensure security measures function correctly. However, the lack of clarity from Microsoft fuels user unease.
• User Impact: Paul Thurrott expresses skepticism about the necessity of making such system folders visible, wondering why Microsoft doesn’t keep them hidden to prevent user interference ([19:03]).

Notable Quote:

Paul Thurrott [19:03]: "I just don't see it. Why would they say that? Why create it until you need it to do something actual?"

Windows Insider Preview Channels

The hosts critique recent changes to the Windows Insider Preview channels, noting a departure from the previously logical progression of feature testing stages.

Key Points:

• Channel Restructuring: Paul Thurrott discusses Microsoft's shift to a channel-based approach, where feature updates no longer follow a sequential path from Canary to Dev to Beta to Release Preview ([53:40]).
• User Confusion: The lack of order in feature deployment has led to frustration among Insider program participants, making it difficult to predict when and how new features will be introduced.
• Critical Perspective: Richard Campbell views this change as an "admission of guilt," suggesting that the disorganized rollout reflects deeper internal issues within Microsoft's engineering teams ([55:22]).

Notable Quote:

Richard Campbell [54:48]: "But there's no order to this because there's no order in our universe."

Copilot Plus PC Feature

A significant portion of the discussion centers on Microsoft's Copilot Plus PC initiative, which introduces advanced AI features to a select group of PCs.

Key Points:

• Feature Requirements: Copilot Plus PC requires modern security features such as TPM 2.0 and VBS enclaves, aligning with Microsoft's broader security initiatives ([28:02]).
• Limited Rollout: The feature is currently available only on a small subset of PCs categorized as Copilot Plus, raising concerns about accessibility and user experience.
• User Experience: The frequent prompts to verify identity resemble CAPTCHAs, leading to annoyance among users who desire seamless integration without constant interruptions ([39:47]).

Notable Quote:

Paul Thurrott [39:47]: "I guarantee you, if you actually want to use recall, and if you are actually actively using recall, it is really annoying because that comes up all the time."

Microsoft’s Relationship with OpenAI and AI Investments

Paul Thurrott elaborates on the strategic partnership between Microsoft and OpenAI, underscoring its importance in maintaining Microsoft's competitive edge in the rapidly evolving AI landscape.

Key Points:

• Financial Commitment: Microsoft has invested billions into OpenAI, integrating its models into products like Bing and Microsoft 365's Copilot features.
• Competitive Positioning: This partnership positions Microsoft strongly against rivals like Google, which is also heavily investing in AI to challenge its dominance in search and advertising ([92:34]).
• AI-driven Growth: The collaboration with OpenAI has been a catalyst for Microsoft's growth in cloud services and AI-driven applications.

Notable Quote:

Paul Thurrott [135:03]: "But the problem is most people use AI are just normal mainstream human beings. They will trust, already do trust. And they are not going to do this fact checking."

Microsoft Earnings Report Highlights

The hosts dissect Microsoft's recent earnings report, highlighting robust growth in key segments and substantial investments in AI infrastructure.

Key Points:

• Revenue Growth: Microsoft reported revenues just under $90 billion, with significant increases in cloud services (Azure up 21%) and Microsoft 365 (up double digits) ([75:33]).
• Profitability: Net income surged to nearly $26 billion, reflecting strong operational performance despite challenges in hardware revenue.
• AI Investments: A notable portion of earnings is being reinvested into AI, underscoring Microsoft’s commitment to maintaining its leadership in the field ([134:09]).

Notable Quote:

Paul Thurrott [134:09]: "Here is a summary of the earnings report: revenue less than $90 billion. Microsoft 365 is up double digits, Azure is up 21%, intelligent cloud is up 22%, but hardware revenue declined by 6%."

Antitrust Issues and AI Competition

The episode touches on ongoing antitrust cases against Google, discussing their implications for the tech industry and potential shifts in market dynamics.

Key Points:

• Google’s Legal Challenges: Google has lost three major antitrust cases in the U.S., notably affecting its search and advertising dominance.
• Implications for Competition: These legal setbacks could pave the way for increased competition from companies like Microsoft and emerging AI platforms.
• Strategic Moves: Microsoft’s AI advancements, bolstered by its partnership with OpenAI, position it favorably to capitalize on any regulatory shifts that may reduce Google’s market control ([73:09]).

Notable Quote:

Paul Thurrott [73:09]: "But is there a version where they lose 20, 25% of it or something? Yeah, I mean, well, and we are."

AI in Other Products: Duolingo and Beyond

The hosts explore the integration of AI into various consumer products, using Duolingo as a primary example to discuss the benefits and potential pitfalls of AI adoption.

Key Points:

• Duolingo’s AI Integration: Richard Campbell shares an experience with Duolingo’s AI features, expressing concerns about the quality and reliability of AI-generated content.
• Trust and Verification: Paul emphasizes the importance of users maintaining a critical stance towards AI outputs, highlighting the risk of complacency and over-reliance on AI without proper oversight ([130:39]).
• Broader AI Impact: The discussion extends to AI's role in content creation, software development, and other areas, underscoring the necessity for human oversight to prevent errors and ensure quality.

Notable Quote:

Paul Thurrott [130:39]: “You already do trust AI. So when I explicitly use AI and fix errors, it doesn’t change maybe the pure opinion of its value, but it does make the users who are blending with it kinda blind to the fact that errors can and will still happen.”

Whiskey Anecdotes and Personal Stories

Adding a personal touch, Richard Campbell recounts a recent whiskey tasting experience at Casa Divinos in Melbourne, where he encountered a flawed batch of Glengarrick 21 due to a technical issue known as "sapphirefication."

Key Points:

• Whiskey Tasting Incident: Campbell describes how improper dilution during bottling led to saponification, resulting in soapy flavors in the whiskey ([149:41]).
• Technical Insight: The hosts delve into the chemistry behind "sapphirefication," explaining how rapid water addition affects phenol breakdown, which is avoided in modern whiskey production ([152:12]).

Notable Quote:

Richard Campbell [151:57]: “And the ultimate example of this was a Scottish whiskey, a Glengarrick 21. And he says, try this. Gives me just a half an ounce pour, a little tiny pour. And Josh got one too. And I smell it and it smells like dish soap.”

Conclusion

As the episode wraps up, the hosts reflect on the multifaceted impact of AI on technology and everyday applications, emphasizing the balance between innovation and maintaining user trust. They highlight the inevitability of AI's evolution and its deepening integration into various platforms, underscoring the need for ongoing vigilance and critical engagement from users.

Notable Quotes:

1. Paul Thurrott [11:55]:

   "If you think Microsoft is lying about telemetry, you should not be using Windows at all."

2. Richard Campbell [54:48]:

   "But there's no order to this because there's no order in our universe."

3. Paul Thurrott [39:47]:

   "I guarantee you, if you actually want to use recall, and if you are actually actively using recall, it is really annoying because that comes up all the time."

4. Paul Thurrott [135:03]:

   "But the problem is most people use AI are just normal mainstream human beings. They will trust, already do trust. And they are not going to do this fact checking."

5. Richard Campbell [151:57]:

   "And the ultimate example of this was a Scottish whiskey, a Glengarrick 21. And he says, try this. Gives me just a half an ounce pour, a little tiny pour. And Josh got one too. And I smell it and it smells like dish soap."

This episode of Windows Weekly offers a comprehensive exploration of Microsoft's strategic moves in the AI domain, the nuanced debates surrounding telemetry and privacy in Windows 11, and real-world implications of AI integration in consumer products. Coupled with personal stories and industry insights, the hosts provide a nuanced perspective on the evolving interplay between technology, user experience, and corporate strategy.