Windows Weekly 966: “You Can't Spell Gmail Without AI”

Date: January 14, 2026

Hosts: Leo Laporte, Paul Thurrott, Richard Campbell
Location: Paul and Richard recording together from Acapulco, Mexico
Main Theme: The state and future of AI across Microsoft, the PC industry, and everyday technology; deep dives on Copilot, the AI hardware bubble, executive changes at Microsoft, and the evolving dynamic of AI integration in Windows and beyond.

Episode Overview

In a laid-back, tequila-tinged session from Acapulco, hosts Leo Laporte, Paul Thurrott, and Richard Campbell deliver incisive, candid discussion on the pervasive influence of AI in tech—especially in the context of Microsoft, Windows, and the broader PC ecosystem. The episode explores recent AI mishaps (including the infamous “AI bans football fans” UK policing story), industry posturing at CES, rumors and realities around Microsoft Copilot’s adoption, and the complex economics and energetics of the AI boom. The hosts also reflect on executive shifts at Microsoft, gaming industry tidbits, and the murkiness of hardware choices in the AI PC era. The show closes with a spirited “back of the book” segment on the ins and outs of tequila (and its surprisingly shadowy economics), plus listener-friendly security advice.

Key Discussion Points & Insights

1. Acapulco Antics & Setting the Stage

• Paul and Richard's annual remote together brings an informal, jovial energy.
• “The beach has conquered us.” – Paul Thurrott [01:19]
• “There might've been tequila involved.” – Paul Thurrott [01:48]

2. AI Gone Wrong: UK Police and Copilot Hallucinations

• A UK police force used Microsoft Copilot’s AI to help manage football (soccer) game security, resulting in erroneous bans—attributed to hallucinations.
• “This is the standard Copilot experience, I think.” – Richard Campbell [02:35]
• “At least no one died this time.” – Richard Campbell [03:32]
• Discussion of increasing public criticism and skepticism toward unchecked AI automation, especially in sensitive domains.
• “Have you been asking a non-deterministic programming model for facts? Well, there was your first mistake.” – Paul Thurrott [03:45]

3. The “AI PC” Narrative and CES 2026

• Media and public confusion over what “AI PC” really means, and whether consumers care.
• Dell exec claims consumers don’t buy PCs for AI features—hosts roast this position, noting Dell’s weak consumer business.
• “There's no company less qualified to talk on the subject than Dell.” – Paul Thurrott [05:59]
• Lenovo’s AI-driven success highlighted; HP and Apple’s aggressive AI pushes are compared.
• “It's like saying I'm not buying a car because it has power windows.” – Richard Campbell [09:47]
• AI features now expected, not necessarily the main selling point.

4. Microsoft’s AI Sustainability & Messaging Crisis

• Microsoft’s pledge for sustainable AI is met with skepticism: “impossible” promises around jobs, local economics, tax policies.
• “They're going to make sure their data centers don’t increase electricity prices for people in that community...” – Richard Campbell [11:59]
• Paul: Microsoft recycling old data center PR by swapping “AI” for “data center.”
• Broader industry context: negative public sentiment fueled by overpromising, lack of clarity about AI’s actual capabilities, and growing regulatory fear.

5. Who Runs Microsoft Now? (Executive Power Shift)

• Satya Nadella has discreetly delegated chunks of CEO responsibility, especially to Judson Althoff.
• Amy Hood (CFO) hypothesized as the de facto power, given the increasing “financialization” of Microsoft:
  • “Maybe the next CEO of Microsoft should not be an engineer, but should be someone like Amy Hood and/or Brad Smith.” – Paul Thurrott [19:25]
• Debate: is Microsoft evolving from a tech/product passion company into a finance/utility conglomerate?
  • “Microsoft is really not a software company anymore. They're an infrastructure company.” – Paul Thurrott [21:11]

6. The AI Revenue Bubble: Chasing Growth

• Copilot and the idea of “AI as a paid SKU” (vs. just integrating features).
• “The only problem is market share compared to OpenAI. If you just gave it to everyone, so the numbers were as big as your customer base...” – Paul Thurrott [26:29]
• AI’s massive upfront infrastructure investments may be unsustainable if revenue doesn’t keep pace; cloud growth is slowing, leading to questionable accounting strategies (“insertification”).
• Comparison to the dot-com bubble and historic tech hype cycles—the “Alderaan” metaphor for impending collapse:
  • “When the bubble pops, it’s not a pop—it's more like when Alderaan got destroyed in Star Wars.” – Richard Campbell [28:54]

7. The AI Gold Rush: Industry Convergence and Winner-Take-All

• Despite the bubble, the big tech trio (Microsoft, Google, Amazon) will likely emerge even more unassailable, having built out overwhelming infrastructure.
• “When the dust settles, the top five companies in the world will still be the same top five companies.” – Paul Thurrott [33:48]

8. Practical AI Adoption: Daily Life and “Invisible AI”

• Samsung’s survey: most users don’t realize their phones already use AI “every single day” (autocorrect, call screening, camera tricks, etc.) [73:47]
• Apple’s new Gemini partnership: Siri to be “powered” by Google’s LLMs, running on Apple’s own hardware and systems, to preserve privacy.

9. Copilot’s Place and Consumer Sentiment

• Microsoft Copilot’s usage is lagging versus rivals and is often hidden behind paywalls.
• The hosts argue the best AI integrations will be invisible—just features, not products.
• Candid about user confusion:
  • “I have my own visceral reaction to the way these companies are marketing these capabilities that do not exist...” – Richard Campbell [15:34]

10. Security Segment: Modern Advice for 2026

• Paul outlines a New-Year “security checkup” for all core accounts:
  • Use a password manager, never repeat passwords
  • Use passkeys everywhere possible
  • Favor app-based 2FA over SMS
  • “Properly securing your online accounts...that’s the key to everything that you are and own.” – Paul Thurrott [103:07]

11. Patch Tuesday & Windows Watch

• January Patch Tuesday: minor bug/security fixes; no significant Windows changes [41:18]
• Discussion of AI PC build tiers, battery life questions, and the confusing state of Intel’s chip lineups.

12. Gaming / Xbox Segment

• Xbox event set for January 22nd; not much big news during the post-holiday lull.
• Microsoft, Nintendo, Sony pledge alliance for “player safety”—but hosts are unimpressed: “...a thousand words that don’t say anything...” – Richard Campbell [94:52]

13. Tequila Deep Dive (Back of the Book, 117:34+)

(Paul and Richard are in Mexico, so the segment is both topical and, thanks to diminished bottle volume, hands-on.)

• Tequila production explained:
  • Agave growth, roasting, fermentation, distillation, aging
  • The differences (Blanco, Reposado, Anejo, Cristalino)
• Don Julio (tequila) history and the “Cristalino” trend (clear aged tequilas, often with flavor stripped/added back, sometimes suspect additives)
• Regulatory drama:
  • “Additive Free” tequila label war between producers, Mexican regulators, and class-action lawsuits—allegations some premium brands are diluted with cheaper grain spirits and other additives
• Practical tequila advice:
  • Find additive-free or small-producer bottles (Agave Matchmaker app suggested), avoid suspect “cristalino” and mass-market celebrity brands
  • “Practice makes perfect. Even if the first was not that great, by the third one, it'll be amazing.” – Richard Campbell [142:30]

Notable Quotes & Memorable Moments

• “After months of speculation, Google and Apple have finally partnered on something. It's good to see these two guys getting together.” – Richard Campbell [71:46]
• “Copilot can't even add three and three together.” – Richard Campbell [76:12]
• “Google gathered the world's information, but AI is making sense of it.” – Richard Campbell [82:39]
• “Microsoft is really not a software company anymore. Right? They're an infrastructure company.” – Paul Thurrott [21:11]
• On financialization: “This is not tech. This is not—it's becoming a utility loop in a software program. It's financial market manipulation.” – Richard Campbell [21:26]
• “...when someone walks up and punches you in the face and then you get mad and they're like, ‘What are you mad at me for? I'm a good guy.’” – Richard Campbell [16:31]
• “You can’t spell Gmail without AI. Nailed it.” – Richard Campbell [87:52]
• On AI skepticism: “I feel bad that you, like, feel the need to qualify that. And I think the reason you do is because so many people bitch and moan every time someone ever talks about AI. ‘Well, what about the hallucination?’” – Richard Campbell [83:04]

Timely Timestamps for Important Segments

• AI Copilot police scandal: [02:15] – [04:08]
• PC industry vs. AI PCs at CES: [04:41] – [10:48]
• Microsoft’s sustainability & governance narrative: [11:10] – [15:29]
• Satya’s shift, who runs Microsoft?: [14:32] – [21:27]
• Insertification, the AI investment bubble: [25:39] – [28:54]
• Security advice for 2026: [102:51] – [110:09]
• Tequila & the Cristalino controversy: [117:31] – [145:39]

Tone and Style

• Conversational, witty, and occasionally irreverent (reflecting the hosts’ rapport and the beachside setting)
• Candid and critical about tech industry hype
• Accessible to both enthusiasts and general listeners; skips unnecessary jargon; offers practical analogies

Summary Takeaways

• AI is everywhere in modern tech, whether users notice or not. Much of the “change” is invisible, incremental, or subtle—until it fails dramatically (such as Copilot in policing).
• Microsoft struggles to both convince consumers of AI’s value and justify its staggering infrastructure costs to Wall Street. “Insertification” (layering paid features and complexity to chase new revenue) is the norm, but may be unsustainable.
• Executive and cultural shifts at major tech companies could signal a future where financial maneuvering matters more than technical vision.
• Security hygiene is more critical than ever. Passkeys and password managers are recommended for all; review accounts this January!
• Current PC upgrade cycles and hardware choices are more confusing than ever; “AI PC” as a differentiator is mostly marketing.
• The tequila industry, like tech, masks deep complexity behind simple branding—know your sources and question what’s real (and what’s been sweetened).

This summary brings you core insights, key moments, and actionable takeaways from an engaging, far-ranging episode.