“The ’90s are back”

Hey y’all, it’s Austin Carr in Boston. Microsoft is touting how it’s bringing 1990s-style innovation back to the tech industry. But first... [View in browser]( [Bloomberg]( Hey y’all, it’s Austin Carr in Boston. Microsoft is touting how it’s bringing 1990s-style innovation back to the tech industry. But first... Three things you need to know today: • Clorox is still [cleaning up the mess from its hack]( • The FTC will [sue Amazon this week over antitrust]( • Microsoft and Activision are [nearing a deal in the UK]( Microhard On Sept. 21, Microsoft Corp. showed off a heap of [wow-worthy upgrades to its Windows operating system and artificial-intelligence offerings]( at an event in New York City. “It’s crazy,” said Microsoft Chief Executive Officer Satya Nadella. “It’s kind of like the ‘90s are back.” Nadella’s throwback to the era when a [practically unstoppable Bill Gates]( walloped the competition with aggressive corporate maneuvering was meant as a reference to Microsoft’s AI [Copilot]( services. But, as has historically been the case at the software-centric company, the new slate of hardware was largely overlooked. Unveiled in the final 17 minutes of the hour-long event, Microsoft’s new Surface PCs — the [$799 Go and higher-end Studio]( laptops — are the culmination of at least a dozen years of bets on homegrown industrial design. I was at the [Los Angeles unveiling of the first Surface]( computer in June 2012 and remember feeling shocked that Microsoft created an [iPad competitor](. The company’s role in the computer industry up to that point was as a sort of Switzerland, where it made money from licensing Windows to Dell, HP, Lenovo and the like. Microsoft diplomatically described the original Surface, a tablet with a then-unique foldable keyboard and sturdy kickstand, not as a threat to other device manufacturers but as a North Star. Panos Panay, who later became Microsoft’s product chief, [said the Surface]( was “built as a stage” for Windows, a “physical manifestation” of the operating system designed for the “hardware to fade to the background.” Just as Google’s [Pixel phones are intended to inspire Android]( product makers like Samsung Electronics Co., Microsoft hoped the Surface would push its partners to create better hardware in their forever war against Apple Inc. Though reviewers were initially lukewarm to the “hybrid” [PC concept and subsequent Surface iterations](, the lineup’s detachable accessories, foldable form factors and delightful kickstand — which Panay heralded for its tactile feeling and snapping sound, akin to a luxury car door — proved to be popular both with Microsoft allies and adversaries. Apple [eventually came around to Microsoft’s design approach](, while Amazon.com Inc. just [poached Panay to lead the division]( overseeing Alexa gadgets and Echo smart speakers. In subtle ways, this year’s Surfaces reflect Microsoft’s new focus on AI. Hardware and software engineers worked in tandem to design Copilot experiences and craft the “most natural state” of the new version of Windows 11, said Pete Kyriacou, a corporate vice president in Microsoft’s devices group. The Surface products still look like laptops, but Kyriacou told me there are lots of “nuances” inside and outside the units meant to complement Copilot. Many critics expected that when Microsoft started making computers, it would alienate longtime partners. Surprisingly, the opposite has happened. At last week’s event, products from tech rivals stood side-by-side onstage. Microsoft leaders talked up Surface chips from archnemeses [Intel and Nvidia](, showed [implementations of OpenAI’s Dall-E]( and that of rival Adobe Firefly and exhibited integrations with [Apple]( and Spotify. Microsoft doesn’t sell nearly enough Surfaces to ditch its hardware partners and go the Apple route. Kyriacou stressed that Microsoft’s open ecosystem is here to stay, whether for Windows, AI Copilots or future Surface hardware: “We want to make sure that’s part of our design going forward.” —[Austin Carr](mailto:acarr54@bloomberg.net) The big story The iPhone 15 is here, with strong demand pushing delivery to some customers back to mid-November. Reservations for in-store pickup are sold out, and buyers [saw long lines in Australia, China and Dubai](. One to watch [Watch the Bloomberg Technology TV interview]( with CoinShares CEO Jean-Marie Mognetti on his new hedge fund arm. Get fully charged Instacart named Ravi Gupta, a former COO, to its board. Gupta is a [partner at Sequoia Capital](, the largest institutional investor in the grocery delivery company. Antitrust regulators in the EU[fined Intel $400 million]( for “abuse of dominant position in the market.” Tinder is offering a new $500-a-month [subscription to its most active users](. Amazon Prime Video viewers are about to see ads pop up on [the service starting in 2024](, with the option to pay more for an ad-free experience. More from Bloomberg Live event: The Bloomberg Technology Summit in London will host top technology leaders, business executives, innovators and entrepreneurs on Oct. 24. The event will explore the rapid advance of AI, green technology, the escalation of cyber warfare and more. [Register here](. Get Bloomberg Tech weeklies in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Q&AI]( for answers to all your questions about AI Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](