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Microsoft open-sources Mage-VL-Cowork, a 4B computer-use agent scoring 66.0% on OSWorld-Verified

Microsoft's Mage team released Mage-VL-Cowork weights on Hugging Face under Apache-2.0. The 4B-parameter vision-language model operates both the GUI (screenshots, mouse, keyboard) and code/terminal within a single policy. Microsoft says it scores 66.0% on OSWorld-Verified with a 50-step budget, above larger models such as Qwen3.6-27B; online RL adds 10.16 points over hybrid SFT.

Why it matters: A small, commercially usable open model approaching larger agents on computer use makes on-device agents more practical.

Open sourceoriginally

Arena: MAI-Image-2.7-Preview ranks #3 overall in the Image Edit Arena with 1470 points

Microsoft AI released MAI-Image-2.7, an image-editing model, in preview on October 27. Microsoft says it debuted at No. 3 on Arena Edit and No. 2 on Artificial Analysis's editing leaderboard, beating 2.6 on all 10 use cases and 7 editing actions there and leading in scene and style by 24 Elo. Editing is live on Arena, Artificial Analysis and MAI Playground; text-to-image comes later.

Why it matters: Microsoft's MAI-Image-2.7-Preview ranks #3 overall on Arena's image-edit board (1470 points), 45 points above 2.6, lifting Microsoft to #2 among labs.

Researchoriginally

Microsoft introduces a time-limited voluntary exit offer; CNBC says about 60,000 employees are eligible

Microsoft people chief Amy Coleman announced a voluntary, time-limited exit offer on the company blog for employees at level 70 and below in the US, Canada, India and the UK, with financial support and career transition resources. CNBC, citing a person familiar, reports about 60,000 are eligible, roughly 27% of its 223,000 staff; Microsoft confirmed the figure to The Register.

Why it matters: Microsoft is reshaping its workforce while AI infrastructure spending keeps rising, a move that may influence how other large tech companies restructure.

Funding & companiesoriginally