Microsoft on Thursday unveiled new Surface computers and shared details on the release of this year’s version of Windows 11, including its embedded Copilot AI assistant, during an event in New York.
The company introduced the Surface Laptop Studio 2 and the Surface Laptop Go 3, and unveiled enterprise availability for Microsoft 365 Copilot, its supplemental AI tool for core productivity apps like Word and Excel.
Microsoft CEO Satya Nadella began the event by speaking about how the company’s Copilot AI tools will make a broad impact across its user base for consumers and enterprises.
“I mean, it’s crazy,” he said. “It’s kind of like the 90s are back. It’s exciting to be in a place where we’re bringing some software innovation and really having fun enjoying this entire journey.”
Rivals such as Atlassian, Google and Salesforce have also been racing to update their existing products with generative AI this year.
The Surface Laptop Studio 2 starts at $1,999, while the Surface Laptop Go 3 starts at $799. Both will ship with Microsoft’s revamped Windows 11 operating system, which includes its Copilot software. The new Surface models will be available Oct. 3 and are available for pre-order today, Microsoft said.
Notably absent from the event was Panos Panay, the Microsoft executive who presented Surface computers to the public for a decade. On Monday Microsoft announced a series of leadership changes as it disclosed that Panay was leaving.
Here’s a rundown of Thursday’s news:
Windows 11 update
Microsoft’s updated Paint app for Windows 11 will allow people to create images by just typing in a few words.
Microsoft
Microsoft said it will begin rolling out the next major update to Windows 11 on Sept. 26.
The update will include the new Copilot in the Bing search engine and the Edge web browser, and people will be able to summon the Copilot by holding down the Windows key and pressing the C key.
Here are some of the key features of the new version:
Boot to the cloud. If you’re running a cloud-based version of Windows, you’ll be able to log directly into the cloud instance as your primary experience on the your PC, Microsoft said.
Smarter snipping. It’s getting easier to pull out text directly from screenshots with Windows. When using the Snipping Tool app, you can copy text from a screenshot and quickly redact emails or phone numbers.
Better backup. Microsoft will enable users to back up apps they’ve previously installed on a PC in order to restore them, along with pinned app preferences, in the future.
Paint with words. The longstanding Paint app is getting a facelift with help from generative AI. People will be able to type in a few words of text, choose a style and have Paint auto-generate an image matching the description. It’s similar to tools from Adobe and other companies, as well as Microsoft’s own image creator in the Bing search engine.
More taskbar customization. Windows 11 introduced a stark new taskbar that puts the Start button and a series of app icons in the center at the bottom of the screen. Now users can view app icons with labels, similar to how things looked in Windows 10. Even apps that aren’t running can appear with labels. Users will also be able to hide the time and date.
Notepad with memory. Notepad will automatically save your status so that if you close the note-taking app and reopen it, you can get right back to your work.
Testers have gotten access to some of these features in early builds in recent months.
Copilot for advertising
Microsoft Advertising Platform will get a Copilot assistant that will be able to create advertising copy and imagery.
Microsoft
Microsoft is also incorporating generative AI into its advertising tool, although the company did not disclose when exactly it will do so. A Copilot for the Microsoft Advertising Platform will be able to answer marketers’ questions through a chat interface.
And over time, it will help automate the process of coming up with ads. Alphabet and Meta have both been active in this area.
“Using Copilot in the Microsoft Advertising Platform, you can tailor content, design, and strategies to your branding and advertising goals, creating stunning and effective ads in minutes,” Kya Sainsbury-Carter, corporate VP for advertising at Microsoft, wrote in a blog post.
Surface Laptop Studio 2
Microsoft Surface Laptop Studio
Courtesy: Microsoft
The Surface Laptop Studio 2 has a similar look and feel to the original model that launched in 2021. It can be used like a traditional laptop with a keyboard, but customers can also lay it flat and use it like a tablet.
It offers a 13th-generation Intel Core chip, with a few options for Nvidia graphics processing units: the GeForce RTX 4050 or 4060, or the RTX 2000 Ada Generation. Models with Nvidia graphics will come with 120-watt power supplies. Or people can choose integrated graphics with Intel Iris Xe.
Microsoft has also added a single traditional USB-A port, along with a MicroSD card reader.
People can choose to include up to 64GB of RAM, compared with a maximum of 32GB in the first iteration.
The device has an 14.4-inch screen and is the “most powerful Surface ever built,” Brett Ostrum, Microsoft’s VP of Surface devices, said at the event. He added that the Surface Laptop Studio 2 is twice as fast as the previous model, and it also features an updated haptic touchpad, which is the “most inclusive touchpad on any laptop today.”
Models with 2TB of storage and Nvidia graphics boast up to 16 hours of battery life, while devices with less space and Nvidia cards can deliver up to 18 hours, while Intel graphics models have a 19-hour capacity, Microsoft said. The company claimed the inaugural Surface Laptop Studio boasted 18 hours of battery life, but CNBC found it generally lasted closer to 4.5 hours.
The new version starts at $1,999, compared with $1,599 for the original model.
Surface Laptop Go 3
Microsoft Surface Laptop Go
Courtesy: Microsoft
The Surface Laptop Go 3 is the latest update to Microsoft’s entry-level laptop. It features a 12.4-inch touch screen display and runs on a 12th-generation Intel processor. Ostrum said it’s Microsoft’s lightest and most portable laptop, weighing in at 2.49 pounds. The Surface Laptop Studio 2 exceeds 4 pounds.
Microsoft said the new laptop’s battery will last for 15 hours, compared with 13.5 hours for its predecessor. In terms of performance, the device is 88% faster than the original model, Ostrum said.
People can choose to add up to 16GB of RAM and up to 512GB of solid-state storage, instead of a 8GB memory limit and up to 256GB in solid-state storage in the Surface Laptop Go 2.
The laptop starts at $799, an increase from the $599 starting price of the Surface Laptop Go 2.
Surface Go 4
Microsoft Surface Go For Business
Courtesy: Microsoft
Microsoft announced the Surface Go 4, the latest miniature version of its Surface Pro tablet that’s available exclusively for organizations. The company suggested in a release that the new model could be especially useful for businesses and frontline workers.
The Surface Go 4 can be docked to a monitor, used as a laptop with a paired keyboard or like a tablet using the touch screen.
It’s powered by an Intel N200 processor. The Surface Go 4 also features an 10.5-inch touchscreen display and supports 12.5 hours of battery life, which is an increase from the 11 hours of battery life offered by the Surface Go 3.
Surface Hub 3
Surface Hub 3
Courtesy: Microsoft
Microsoft hasn’t forgotten about its Surface Hub, its large touchscreen device for use in the office.
A 85-inch model and a smaller 50-inch option offer organizations an easy way to join Teams video calls. During Teams calls, software will be able to remove the background from various participants and adjust their sizes, Microsoft product marketing director Frank Buchholz wrote in a blog post.
The smaller version can switch between portrait and landscape modes. Two people can simultaneously draw or write on the devices with Surface Hub Pens or Surface Slim pens.
Microsoft is touting 60% better performance in the main processor of these devices and a 160% bump for their graphics processing units.
Microsoft 365 Copilot release for big businesses
Large organizations will be able to start paying for Microsoft 365 Copilot starting Nov. 1.
The launch could provide a financial boost to Microsoft 365, formerly known as Office 365, a key part of the business that had 382 million commercial seats in the fiscal third quarter. Microsoft said enterprises can call their account representatives to get started.
Companies that participated in the tool’s early access program will be given first chance to deploy the software, which will cost $30 per person per month on top of Microsoft 365’s existing costs. Microsoft has also started allowing some small businesses into the early access program.
“In the testing that we’ve already done with preview customers, you’re in a meeting, you can have a meeting summary, and the AI can summarize the entire meeting and give it to you in bite-sized chunks, Yusuf Mehdi, the new head of Surface and Windows at Microsoft, told CNBC’s Steve Kovach.
“If you missed the meeting, you can tell me what happened out of it, you can say to get action items, what did my boss say, when was I mentioned, and you can get all that. That time is unbelievably precious, and for $30 a month, it’s an incredible value. People really love that capability.”
Hidden among the majestic canyons of the Utah desert, about 7 miles from the nearest town, is a small research facility meant to prepare humans for life on Mars.
The Mars Society, a nonprofit organization that runs the Mars Desert Research Station, or MDRS, invited CNBC to shadow one of its analog crews on a recent mission.
“MDRS is the best analog astronaut environment,” said Urban Koi, who served as health and safety officer for Crew 315. “The terrain is extremely similar to the Mars terrain and the protocols, research, science and engineering that occurs here is very similar to what we would do if we were to travel to Mars.”
SpaceX CEO and Mars advocate Elon Musk has said his company can get humans to Mars as early as 2029.
The 5-person Crew 315 spent two weeks living at the research station following the same procedures that they would on Mars.
David Laude, who served as the crew’s commander, described a typical day.
“So we all gather around by 7 a.m. around a common table in the upper deck and we have breakfast,” he said. “Around 8:00 we have our first meeting of the day where we plan out the day. And then in the morning, we usually have an EVA of two or three people and usually another one in the afternoon.”
An EVA refers to extravehicular activity. In NASA speak, EVAs refer to spacewalks, when astronauts leave the pressurized space station and must wear spacesuits to survive in space.
“I think the most challenging thing about these analog missions is just getting into a rhythm. … Although here the risk is lower, on Mars performing those daily tasks are what keeps us alive,” said Michael Andrews, the engineer for Crew 315.
Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen
Mike Segar | Reuters
Apple had two major launches last month. They couldn’t have been more different.
First, Apple revealed some of the artificial intelligence advancements it had been working on in the past year when it released developer versions of its operating systems to muted applause at its annual developer’s conference, WWDC. Then, at the end of the month, Apple hit the red carpet as its first true blockbuster movie, “F1,” debuted to over $155 million — and glowing reviews — in its first weekend.
While “F1” was a victory lap for Apple, highlighting the strength of its long-term outlook, the growth of its services business and its ability to tap into culture, Wall Street’s reaction to the company’s AI announcements at WWDC suggest there’s some trouble underneath the hood.
“F1” showed Apple at its best — in particular, its ability to invest in new, long-term projects. When Apple TV+ launched in 2019, it had only a handful of original shows and one movie, a film festival darling called “Hala” that didn’t even share its box office revenue.
Despite Apple TV+being written off as a costly side-project, Apple stuck with its plan over the years, expanding its staff and operation in Culver City, California. That allowed the company to build up Hollywood connections, especially for TV shows, and build an entertainment track record. Now, an Apple Original can lead the box office on a summer weekend, the prime season for blockbuster films.
The success of “F1” also highlights Apple’s significant marketing machine and ability to get big-name talent to appear with its leadership. Apple pulled out all the stops to market the movie, including using its Wallet app to send a push notification with a discount for tickets to the film. To promote “F1,” Cook appeared with movie star Brad Pitt at an Apple store in New York and posted a video with actual F1 racer Lewis Hamilton, who was one of the film’s producers.
(L-R) Brad Pitt, Lewis Hamilton, Tim Cook, and Damson Idris attend the World Premiere of “F1: The Movie” in Times Square on June 16, 2025 in New York City.
Jamie Mccarthy | Getty Images Entertainment | Getty Images
Although Apple services chief Eddy Cue said in a recent interview that Apple needs the its film business to be profitable to “continue to do great things,” “F1” isn’t just about the bottom line for the company.
Apple’s Hollywood productions are perhaps the most prominent face of the company’s services business, a profit engine that has been an investor favorite since the iPhone maker started highlighting the division in 2016.
Films will only ever be a small fraction of the services unit, which also includes payments, iCloud subscriptions, magazine bundles, Apple Music, game bundles, warranties, fees related to digital payments and ad sales. Plus, even the biggest box office smashes would be small on Apple’s scale — the company does over $1 billion in sales on average every day.
But movies are the only services component that can get celebrities like Pitt or George Clooney to appear next to an Apple logo — and the success of “F1” means that Apple could do more big popcorn films in the future.
“Nothing breeds success or inspires future investment like a current success,” said Comscore senior media analyst Paul Dergarabedian.
But if “F1” is a sign that Apple’s services business is in full throttle, the company’s AI struggles are a “check engine” light that won’t turn off.
Replacing Siri’s engine
At WWDC last month, Wall Street was eager to hear about the company’s plans for Apple Intelligence, its suite of AI features that it first revealed in 2024. Apple Intelligence, which is a key tenet of the company’s hardware products, had a rollout marred by delays and underwhelming features.
Apple spent most of WWDC going over smaller machine learning features, but did not reveal what investors and consumers increasingly want: A sophisticated Siri that can converse fluidly and get stuff done, like making a restaurant reservation. In the age of OpenAI’s ChatGPT, Anthropic’s Claude and Google’s Gemini, the expectation of AI assistants among consumers is growing beyond “Siri, how’s the weather?”
The company had previewed a significantly improved Siri in the summer of 2024, but earlier this year, those features were delayed to sometime in 2026. At WWDC, Apple didn’t offer any updates about the improved Siri beyond that the company was “continuing its work to deliver” the features in the “coming year.” Some observers reduced their expectations for Apple’s AI after the conference.
“Current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high, in our view,” wrote Jefferies analysts this week.
Siri should be an example of how Apple’s ability to improve products and projects over the long-term makes it tough to compete with.
It beat nearly every other voice assistant to market when it first debuted on iPhones in 2011. Fourteen years later, Siri remains essentially the same one-off, rigid, question-and-answer system that struggles with open-ended questions and dates, even after the invention in recent years of sophisticated voice bots based on generative AI technology that can hold a conversation.
Apple’s strongest rivals, including Android parent Google, have done way more to integrate sophisticated AI assistants into their devices than Apple has. And Google doesn’t have the same reflex against collecting data and cloud processing as privacy-obsessed Apple.
Some analysts have said they believe Apple has a few years before the company’s lack of competitive AI features will start to show up in device sales, given the company’s large installed base and high customer loyalty. But Apple can’t get lapped before it re-enters the race, and its former design guru Jony Ive is now working on new hardware with OpenAI, ramping up the pressure in Cupertino.
“The three-year problem, which is within an investment time frame, is that Android is racing ahead,” Needham senior internet analyst Laura Martin said on CNBC this week.
Apple’s services success with projects like “F1” is an example of what the company can do when it sets clear goals in public and then executes them over extended time-frames.
Its AI strategy could use a similar long-term plan, as customers and investors wonder when Apple will fully embrace the technology that has captivated Silicon Valley.
Wall Street’s anxiety over Apple’s AI struggles was evident this week after Bloomberg reported that Apple was considering replacing Siri’s engine with Anthropic or OpenAI’s technology, as opposed to its own foundation models.
The move, if it were to happen, would contradict one of Apple’s most important strategies in the Cook era: Apple wants to own its core technologies, like the touchscreen, processor, modem and maps software, not buy them from suppliers.
Using external technology would be an admission that Apple Foundation Models aren’t good enough yet for what the company wants to do with Siri.
“They’ve fallen farther and farther behind, and they need to supercharge their generative AI efforts” Martin said. “They can’t do that internally.”
Apple might even pay billions for the use of Anthropic’s AI software, according to the Bloombergreport. If Apple were to pay for AI, it would be a reversal from current services deals, like the search deal with Alphabet where the Cupertino company gets paid $20 billion per year to push iPhone traffic to Google Search.
The company didn’t confirm the report and declined comment, but Wall Street welcomed the report and Apple shares rose.
In the world of AI in Silicon Valley, signing bonuses for the kinds of engineers that can develop new models can range up to $100 million, according to OpenAI CEO Sam Altman.
“I can’t see Apple doing that,” Martin said.
Earlier this week, Meta CEO Mark Zuckerberg sent a memo bragging about hiring 11 AI experts from companies such as OpenAI, Anthropic, and Google’s DeepMind. That came after Zuckerberg hired Scale AI CEO Alexandr Wang to lead a new AI division as part of a $14.3 billion deal.
Meta’s not the only company to spend hundreds of millions on AI celebrities to get them in the building. Google spent big to hire away the founders of Character.AI, Microsoft got its AI leader by striking a deal with Inflection and Amazon hired the executive team of Adept to bulk up its AI roster.
Apple, on the other hand, hasn’t announced any big AI hires in recent years. While Cook rubs shoulders with Pitt, the actual race may be passing Apple by.
Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
Kevin Dietsch | Getty Images
Tesla CEO Elon Musk, who bombarded President Donald Trump‘s signature spending bill for weeks, on Friday made his first comments since the legislation passed.
Musk backed a post on X by Sen. Rand Paul, R-Ky., who said the bill’s budget “explodes the deficit” and continues a pattern of “short-term politicking over long-term sustainability.”
The House of Representatives narrowly passed the One Big Beautiful Bill Act on Thursday, sending it to Trump to sign into law.
Paul and Musk have been vocal opponents of Trump’s tax and spending bill, and repeatedly called out the potential for the spending package to increase the national debt.
The independent Congressional Budget Office has said the bill could add $3.4 trillion to the $36.2 trillion of U.S. debt over the next decade. The White House has labeled the agency as “partisan” and continuously refuted the CBO’s estimates.
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The bill includes trillions of dollars in tax cuts, increased spending for immigration enforcement and large cuts to funding for Medicaid and other programs.
It also cuts tax credits and support for solar and wind energy and electric vehicles, a particularly sore spot for Musk, who has several companies that benefit from the programs.
“I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote in a social media post in early June as the pair traded insults and threats.
Shares of Tesla plummeted as the feud intensified, with the company losing $152 billion in market cap on June 5 and putting the company below $1 trillion in value. The stock has largely rebounded since, but is still below where it was trading before the ruckus with Trump.
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Tesla one-month stock chart.
— CNBC’s Kevin Breuninger and Erin Doherty contributed to this article.