A leaked video has revealed that Microsoft has explored building a dedicated AI OS powered by Microsoft Edge and a new lightweight Windows codebase called Win3. This exploration was codenamed Aion, and was built around web tech, placing Copilot at the heart of the experience.

The 3 minute video, which my sources say is real, was first leaked on Discord server BetaWiki and provides a handy walkthrough of what looks to be real (but early) working code, showcasing a new desktop UI that features a similar Taskbar along the bottom, Start menu-like interface powered by Copilot, and more.

"Aion is an example of a web-based agent OS that natively builds Copilot into the core of the shell," says the video's narrator. The entire experience is built around Copilot and a multi-modal input box, which is where users go find files, open apps, and browse the web.

The Taskbar includes a unique feature called "Spaces" that automatically groups your apps and sites into a bucket on the Taskbar that you can quickly return to at a later point. These spaces appear in the Start menu too, providing a one-click method of opening multiple things at once.

The video explains that Aion is built around the web, meaning it doesn't run native Windows apps. It only runs web apps and websites, leaning on Windows 365 to remote into a Cloud PC and stream desktop apps if the user needs access to one.

The video does mention that there's a version of Aion that also runs on top of Windows 11, which would presumably support running Windows apps natively. But the version in the video appears to be based on the Win3 version, which sources tell me is a stripped back version of the Windows codebase that does not include support for legacy Win32 apps in exchange for faster updates, longer battery life, and better security.

My sources also say this video is quite old, recorded sometime in 2024, and it's unclear if this was just a Hackathon project or something more. I understand that Aion was experimental in nature, designed to explore what a desktop UX is capable of if built from scratch around an agentic AI. That means it's unclear if Aion is something that Microsoft ever intends to ship.

With that said, it would be surprising if some of the lessons Microsoft has learned from the Aion project aren't already shaping the version of Windows shipping today. While I don't expect Aion to ship as depicted in the video above, agentic OS capabilities are already finding their way into Windows 11.

Either way, this is a fascinating look at what what at least one team thought the future of desktop computing could be like with Copilot at the heart of the experience. Given the sheer backlash around Copilot in the last year or two, I wouldn't be surprised if Microsoft is already rethinking much of this.

Windows Central has reached out to Microsoft for comment, and will update should we receive one.

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On Windows 11, if GIFs suddenly disappeared from the emoji panel, the problem wasn't caused by a broken update. It was caused by a service the operating system depended on quietly going away.

Starting June 30, 2026, users on versions 24H2, 25H2, and 26H1 began seeing a "GIF service is not available" message after pressing the Windows key + . (period) keyboard shortcut to open the emoji panel. Microsoft has now confirmed the issue affects devices that haven't installed its latest optional update, which replaces Google's Tenor service with GIPHY.

Why this happened

This wasn't a traditional bug with the operating system. The emoji panel relied on the Tenor API to search and display animated GIFs, but Google retired that service on June 30. Once the API was switched off, Windows 11 had nowhere to retrieve GIFs, leaving the feature effectively offline.

"Starting June 30, 2026, install the latest Windows update to continue using GIFs in the Emoji panel. If you don't update, you will see a 'GIF service is not available' error in the panel," Microsoft explains.

Instead of restoring Tenor, the company moved to GIPHY before the shutdown. Microsoft included the change in the June 23 preview update for versions 25H2 and 24H2 (KB5095093) and for version 26H1 (KB5095091), allowing updated systems to continue displaying GIFs without interruption.

Why GIFs may look different

The fix also changes the experience. Since Windows 11 now pulls results from GIPHY instead of Tenor, searches may return different animations, rankings, and content for the same keywords. The feature works the same way, but the library behind it has changed.

How to restore GIFs

If you're seeing this error, you can restore the functionality by installing the latest quality update from Settings > Windows Update. If you're doing this before the Patch Tuesday update release, then turn on the "Get the latest updates as soon as they're available" toggle switch.

Once the update is installed, the emoji panel automatically switches to GIPHY, and no additional configuration is required.

This is a reminder that even built-in features increasingly depend on online services outside Microsoft's control. When one of those services disappears, a feature that looks native to the operating system can stop working overnight until Microsoft rewires it to something else.

Windows Central's Take

On Windows 11, when a core feature suddenly stops working, the default reaction is usually to assume Microsoft broke something in the latest update. However, after tracking updates for years, I've learned that the operating system is often (not always) just caught in the crossfire of third-party service changes.

In this case, the company handled the transition as smoothly as it could. Instead of leaving users stranded, they already had a replacement lined up, and installing the latest update fixes the issue immediately. Just keep in mind that since GIPHY is taking over for Tenor, your typical reaction GIFs might look a bit different from now on.

Have you noticed any changes to the GIFs in the Windows 11 emoji panel, or are you still seeing Tenor? Let me know in the comments.

More resources

Explore more in-depth how-to guides, troubleshooting advice, and essential tips to get the most out of Windows 11 and 10. Start browsing here:

• Windows 11 on Windows Central — All you need to know
• Windows 10 on Windows Central — All you need to know

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Microsoft is expected to announce another round of layoffs soon. Less than 2.5% of the company's workforce will be affected, according to sources that spoke with Business Insider. Due Microsoft's size, even that small percentage means thousands of people will be affected.

An SEC filing from June 30, 2025 showed Microsoft had about 228,000 employees. That figure has fluctuated since then, but it gives a gauge of the size of Microsoft's full-time workforce.

Division cuts & AI infrastructure

This round of layoffs will affect thousands of roles across sales, consulting, and within the Xbox division. Microsoft is expected to announce the layoffs next week, though plans are subject to change.

July layoffs have become commonplace for Microsoft because the company's fiscal year starts on July 1. Over 9,000 layoffs were made by Microsoft last July. Microsoft also lays off workers during other times of the year, such as the 6,000 layoffs made in May 2025.

Microsoft is one of many tech giants looking to reduce head count and lower expenses in certain areas. Increased AI spending and the rise of AI has affected jobs at several levels.

Voluntary retirements lowered the impact

This July will reportedly have fewer layoffs because several employees took voluntary retirement. Microsoft offered buyouts to employees level 67 and below in the United States who had 70 or more combined years of service and years of age (for example, someone who was 50 years old who had worked for Microsoft for 20 years).

Roughly 9,000 Microsoft employees were eligible for that buyout and around one third of those eligible took the buyout, according to Business Insider.

Xbox restructuring

Layoffs have been expected, and not simply because they've become an annual occurrence. Xbox CEO Asha Sharma is overseeing a restructuring of Xbox, much of which will occur within a 100-day reset.

As is the case with all layoff-related stories, I understand the business decisions that lead to layoffs but feel bad for the employees affected.

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Last month, security researcher Chaotic Eclipse (better known as Nightmare-Eclipse) managed to bypass Windows 11's sophisticated BitLocker security feature using a USB stick. Nightmare claimed that Microsoft "intentionally" left a backdoor in the security feature:

"Could have made some insane cash selling this, but no amount of money will stand between me and my determination against Microsoft." The company has since patched three zero-day exploits published by the security researcher, including YellowKey, GreenPlasma, and MiniPlasma.

More recently, Nightmare-Eclipse disclosed a new zero-day vulnerability dubbed RoguePlanet, which affects Microsoft Defender on both Windows 11 and Windows 10. The exploit could allow attackers to gain full control of affected systems (via Bleeping Computer).

Microsoft acknowledged the vulnerability and indicated that it's tracking the RoguePlanet zero-day exploit under CVE-2026-50656. According to the company:

"Microsoft is aware of an elevation of privilege in the Microsoft Malware Protection Engine in Microsoft Defender publicly referred to as "RoguePlanet ". We are working to provide a high quality security update that addresses this vulnerability. We will provide information in this CVE when the update is available."

The security sleuth shared a proof-of-concept exploit in a self-hosted Git repository, further claiming that Microsoft had scrapped its repository hosting exploits on GitHub and GitLab.

Perhaps more interestingly, this news comes after Microsoft previously fronted Windows 11’s Defender as enough for most PC owners. "Microsoft Defender Antivirus covers everyday risks without requiring additional software,” the company added.

The statement seemed highly debatable in the community, though many still agreed with Microsoft's sentiments, including some of Windows Central's readers:

"It's not a secret, Windows Defender has been the best or near the best antivirus for years by now. Times when third-party antivirus actually served a purpose are long gone. You're just slowing down your system and paying for no reason."

In a subsequent blog post, Microsoft admitted that while Windows 11's Defender is usually enough for most users, third‑party tools add extra layers of protection, including identity monitoring or built-in VPNs.

Elsewhere, Nightmare-Eclipse and Microsoft had been locked in a months-long battle, with Microsoft even threatening legal action. But after backlash from the wider cybersecurity community, the company signaled it no longer intends to pursue lawsuits against researchers who conduct or publish their findings.

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A small change is on the way to Windows 11, but it will make a big difference to a select group of users. Windows Insiders can now test the option to make the taskbar smaller on Windows 11.

Windows 11's taskbar has always been controversial. Microsoft rebuilt the taskbar when creating the operating system, but the company did not include every feature from the Windows 10 taskbar.

As a result, options like being able to move the taskbar to the side or top of the screen never made it to Windows 11. Microsoft is addressing some of the most frequently shared complaints. Soon, you'll be able to move the taskbar and resize it. Progress!

Windows Insiders have been able to move the taskbar around since earlier this year, but until recently have had limited options for resizing it. Insider builds presented the option to "show smaller taskbar buttons" but enabling that feature only shrinks the buttons. The actual taskbar remains the same height.

Windows 11 Experimental Preview Build 26300.8758 adds a toggle to change the size of the taskbar. Switching the taskbar to "small" reduces the height of the taskbar and also enables smaller icons.

It's also possible to enable small icons while keeping the taskbar its default height.

Build 26300.8758: Changes

Taskbar

• Taskbar customization just got easier. As we continue to make improvements to the Taskbar experience mentioned last month, we've introduced a dedicated Taskbar Size setting, making it simpler to find, understand, and personalize your ideal taskbar experience.
• We've also made refinements to the transitions between taskbar sizes for a smoother overall experience.

File Explorer

• We've improved the reliability of thumbnail previews for cloud files in the Details pane. The pane has also been reorganized so file properties are easier to find and review at a glance.
• Fixed an issue where the OneDrive shortcut in File Explorer stops working when File Explorer is run in administrative mode.
• Fixed an issue where the confirmation dialog might display an internal Recycle Bin file name instead of the original file name when permanently deleting a file.

Sounds

• Improved system sounds when using Windows in dark mode.

Microsoft released a bunch of builds recently, but most of them were rather minor. An unnoted change is that Xbox mode is now called XBOX mode.

An initiative to improve Windows 11 known as Windows K2 will include changes large and small. Microsoft plans to address serious "pain points" across Windows 11. Performance, design, and reliability are all being worked on by the tech giant.

Tiny details like taskbar resizing help Windows 11 feel more polished and personalized.

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"Linux is a cancer that attaches itself in an intellectual property sense to everything it touches," indicated former Microsoft CEO Steve Ballmer in 2001. At the time, the executive considered Linux users to be communist thieves and viewed the open-source operating system as a "malignant cancer" on Microsoft's intellectual property.

In 2016, Ballmer seemingly changed his stance on Linux after Microsoft ported its SQL Server to Linux. He didn't redact his statement about Linux as he saw fit at the time. The executive revealed that going to war with open-source helped generate a ton of money, which greatly contributed to Microsoft's revenue.

Interestingly, he believed the threat from Linux had passed. The executive said he loved the SQL on Linux announcement, so much so that he emailed Microsoft CEO Satya Nadella to congratulate him on the move.

In 2020, Microsoft President Brad Smith admitted that the company had been on the wrong side of history when open source exploded. "The good news is that, if life is long enough, you can learn … that you need to change," Smith added.

Consequently, Microsoft has seemingly warmed up to open-source over the years, from PowerShell to Visual Studio Code to Microsoft Edge's JavaScript engine. And perhaps more recently, the company unveiled its own Linux distribution, Azure Linux 4.0, to the public.

It's worth noting that Azure Linux 4.0 isn't new; Microsoft has been running the open-source Linux distro across its infrastructure for years now. The only difference is that the platform is now expanding into broader server workloads. The operating system is built on Fedora and runs on Azure virtual machines.

The RAM crisis, mounting AI bloat, and Windows 10's death are all tipping the scales in Linux's favor

While this might seem like a stretch, it's increasingly becoming difficult for users to upgrade to Windows 11. Critics have referred to Microsoft ending support for Windows 10 as programmed obsolescence, designed to force working hardware into early retirement.

Groups like the public interest research group (PIRG) have petitioned Microsoft to reconsider its decision and extend Windows 10 support, citing the potential for the single biggest jump in junked computers (up to 400 million PCs).

Microsoft didn't necessarily leave Windows 10 users in the lurch when it ended support for the operating system on October 14, 2025. It extended support for an additional year through its extended security updates (ESU) program to October 14, 2026, though critics claimed it felt like a last-minute snooze button, only a band-aid on a bleeding system.

More recently, the company extended support for Windows 10 through its ESU program through 2027. It didn't disclose the reason for extending Windows 10 support, but recent events can offer a vague picture of some possibilities.

The rising cost of RAM and NAND, primarily driven through the roof by AI's insatiable appetite for computing power, has made it difficult for users to buy new hardware. In that sense, it's practically impossible for Windows 10 users to upgrade to Windows 11 because their devices don't meet Microsoft's stringent hardware requirements.

There's also the argument of flawed Windows 11 design elements. However, Microsoft already started addressing some of these issues as part of its broader Windows K2 initiative. The company has already started reducing the places where Copilot and its integrations appear across the operating system.

Groups like End of 10 have been pushing users to transition to Linux following Windows 10's end of support. The campaign encourages Windows 10 users to ditch the Windows ecosystem entirely and switch to a version of Linux on any outdated devices, using a lack of ads and telemetry tracking as the key selling points to get users to switch camps.

For context, a recent HP survey found that 3 out of 10 HP PCs are still running Windows 10. This was a slight decrease from September 2025, when HP and Dell indicated that up to 50% of PCs were still running on the operating system. As such, there's a chance the transition from Windows 10 to Windows 11 could roll over into 2027 and even 2028, especially after Microsoft's new lifeline for the OS.

I recently polled Windows Central readers about the current state of affairs and whether they plan to upgrade to Windows 11. Out of 321 participants, 68% (217 readers) said they intend to stick with Windows 10 through 2027.

According to a Windows Central reader:

"Linux has gotten way better, and perhaps with some install help it does everything the common folks want to do (read: not gamers or others reliant on some very specific tailored app).

The way Microsoft has been talking about their future makes every conscious consumer know this is only the beginning, and regular os subscription payments, more surveillance etc is coming.

I might buy win 11 based pc in the future when the current one stops working, but I already know it will run Linux just fine, so MS has opened Pandora's box."

I’ll go out on a limb and suggest that, while it may sound far-fetched, Windows 10 holdouts could abandon Microsoft’s ecosystem in favor of open-source alternatives like Linux — especially if the RAM crisis continues to spiral out of control.

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