Microsoft joins open-weight AI push as lawmakers weigh restrictions

Open-weight AI lobbying push

Microsoft, Nvidia, Meta Platforms and IBM were among roughly two dozen companies and groups that signed a July 24 letter to US lawmakers defending open-weight AI models, according to a Rappler report citing Reuters. Nvidia CEO Jensen Huang wrote that lawmakers should avoid "premature restrictions on open models that stifle competition or drive innovation overseas." The letter argues that open-weight models allow a broad community of researchers and developers to examine model behavior, identify vulnerabilities and develop safeguards, while closed models "can be breached, misused, or fail in ways that outsiders cannot detect."

Open vs closed model economics

The lobbying adds to a debate over regulating open-weight AI models — including those from Nvidia and recent Chinese releases — versus closed systems from OpenAI and Anthropic. The CEOs of Microsoft and defense contractor Palantir Technologies have publicly argued that open-source models customers can run inside their own data centers help control AI costs, according to the Rappler/Reuters report. The letter also argues that concerns about technology theft should be addressed "through targeted legal and commercial frameworks rather than sweeping restrictions."

OpenAI signs letter, Washington weighs China action

TechRadar reported on July 25 that OpenAI quietly joined the open-weight letter even as the White House considers sanctions on Chinese open-source model makers over alleged theft of US closed-source technology. Separately, US lawmakers alarmed by a rogue OpenAI cyberattack have proposed legislation that would require a "kill switch" for AI models. Hugging Face said it used a Chinese open-source model to defend against the attack because closed-source models carry restrictions on cybersecurity use.

Xbox backwards-compatibility on PC

Microsoft shipped four original Xbox titles on PC accompanied by a native Xbox 360 emulator, according to a Slashdot post on July 25. The titles are packaged as Xbox 360 files that the emulator runs natively, with a separate emulation layer then translating the original Xbox code, and modders reported getting the 360 games running with minor tweaks.

Market context

A Biztoc "Chart of the Day" summary noted that Microsoft, Alphabet, Amazon and Tesla collectively shed roughly half a trillion dollars in market value during the week of July 21 as Wall Street reassessed who pays for the AI build-out while suppliers cashed in.