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At Build 2026 in San Francisco, Microsoft unveiled Project Polaris to replace GPT-4 Turbo in GitHub Copilot, open-sourced the Windows Agent Framework, and previewed the Windows Agent Runtime and Azure Agent Mesh.

Microsoft open-sourced its Eclipse IDE Copilot plugin on May 21, releasing roughly 15,000 lines of Java under MIT and drawing 1,200+ stars within hours.

VS Code 1.121, released May 20, adds remote agent sessions over SSH and dev tunnels, native Mermaid diagram rendering, HTML file preview, and a new Agent Host Protocol for multi-client agent coordination.

Microsoft's Digital Crimes Unit seized signspace.cloud and revoked more than 1,000 fraudulent code-signing certificates after Fox Tempest sold access to Azure Artifact Signing for $5,000–$9,000 per transaction to ransomware groups including Rhysida, Akira, and Qilin.

Microsoft has disclosed an actively exploited cross-site scripting flaw in on-premises Exchange Server's Outlook Web Access. No patch has shipped; CISA gave federal agencies until May 29 to apply mitigations.

All 42 part-time and full-time employees at the Psychonauts maker filed an NLRB petition on May 7 to join the Communications Workers of America, with Microsoft pledging not to interfere.

Playground Games' Japan-set racer debuts to universal acclaim on May 19, yet only Game Pass Ultimate and PC Game Pass tiers include it on day one after Microsoft's October 2025 subscription overhaul.

Microsoft ships TypeScript 7.0 Beta featuring a native Go port of the compiler and language service, delivering often 10x faster builds, reduced memory use, and parallelized type-checking for large codebases.

Microsoft's new Autonomous Code Security team disclosed MDASH alongside its May 2026 Patch Tuesday, crediting the multi-model agentic scanner with 16 Windows vulnerabilities — four of them critical RCEs — and an 88.45 percent score on CyberGym.

Microsoft will notify roughly 8,750 US employees on May 7, 2026 that they qualify for the company's first voluntary retirement offer, a Rule-of-70 program for senior directors and below.

Brussels' first review of the Digital Markets Act concludes the law needs no overhaul, declines to designate generative AI as a new core platform service, and shifts focus toward cloud gatekeeper probes and a Google Android AI specification.

Microsoft's enterprise agent control plane went GA on May 1, 2026, adding local Windows agent discovery, Windows 365 for Agents, and public-preview registry sync to AWS Bedrock and Google Gemini Enterprise.