Windows 11 reached 1 billion users during the recent holiday quarter, Microsoft CEO Satya Nadella announced on the company's fiscal Q2, 2026 earnings call. This milestone was reached faster than Windows 10, which took nearly six years to achieve the same number, according to The Verge. The announcement came amidst a flurry of tech news, including Meta's significant losses in its virtual reality division, Microsoft's gains from its investment in OpenAI, and Tesla's decision to discontinue production of the Model S and Model X.
Meta's Reality Labs, the company's virtual reality unit, reported a loss of $19.1 billion in 2025, slightly more than the $17.7 billion lost in 2024, according to TechCrunch. In the fourth quarter alone, the unit posted a loss of $6.2 billion against sales of $955 million. Throughout 2025, Reality Labs generated $2.2 billion in sales. Despite these losses, Meta CEO Mark Zuckerberg remained optimistic about the company's VR efforts during the earnings call.
Zuckerberg also teased upcoming AI models and products from Meta, stating that users would begin to see them in a matter of months. "In 2025, we rebuilt the foundations of our AI program," Zuckerberg said, referring to the company's recently restructured AI lab, according to TechCrunch. He highlighted AI-driven commerce as a particular area of focus, mentioning new "agentic shopping tools" designed to help users find products from businesses in Meta's catalog.
Meanwhile, Microsoft reported a $7.6 billion increase in net income from its investment in OpenAI, according to TechCrunch. The software giant has invested over $13 billion in the AI lab and reportedly has a 20% revenue share agreement with the company. OpenAI is reportedly looking to raise additional funding at a valuation between $75 billion and $83 billion, Bloomberg reported.
In other news, Tesla CEO Elon Musk announced the end of production for the Model S sedan and Model X SUV during the company's quarterly earnings call, according to TechCrunch. "It's time to basically bring the Model S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy," Musk said. He added that Tesla would offer support for existing Model S and Model X owners for as long as people have the vehicles. Production of the Model S and Model X will end next quarter at Tesla's Fremont, California factory, which will then be used to build Optimus robots, according to Musk.
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