— Agility Robotics named Michael Beer as its chief financial officer. Current CFO and chief operating officer Jennifer Hunter will transition to serving exclusively as COO.

“Michael brings outstanding public company finance and capital markets experience, while Jennifer, with her prior experience as a publicly traded COO, will focus exclusively on scaling our operational excellence and manufacturing capabilities,” said CEO Peggy Johnson, in a statement.

The Salem, Ore.-based startup, whose two-legged Digit robots have been tested inside Amazon warehouses, is set to become the first publicly traded U.S. company dedicated solely to humanoid robots, the company announced last month.

Beer joins Agility Robotics from the California energy storage company Energy Vault, where he was CFO for two years. Past roles include venture partner at Vest Coast Capital and CFO at FreeWire Technologies.

— Seattle-area tech veteran Matt Fisher has taken the role of CTO for London-based Efekta Education. The company is developing an agentic teaching and learning platform.

“I’ve spent my career building technologies that help people learn, connect and achieve more. What attracted me to Efekta is its clear vision for using AI to enhance learning, support teachers and
make high-quality education accessible to more people around the world,” Fisher said.

Last August, Fisher joined immersive media startup Adventr as a late-stage co-founder. Prior to that, he was co-founder and CTO at Daydream, a startup that raised a $50 million seed round last year to shake up the way people find and buy clothing online. Other past roles include leadership at Amazon, Microsoft, Nordstrom and Auth0.

— There is another name to add to the raft of departures from Microsoft‘s security leadership.

Rahul Prakash, head of product for Microsoft Security Copilot, shared that he’s leaving his role after nearly a decade with the company.

“As any Identity professional will tell you, the world of [Identity Access Management] is far more intricate than people realize, and it’s being rewritten for the world of AI agents. At Microsoft, I’ve had the privilege of going deep into this space…” Prakash said on LinkedIn.

On Monday, GeekWire reported that Rudra “Rudy” Mitra, who spent more than 27 years at Microsoft, was joining Amazon Web Services as vice president of security services. Other recent departures include Krishna Kumar Parthasarathy, who resigned at after nearly three decades.

— Nancy Lipson has joined Zap Energy as chief legal officer. The Everett, Wash.-based company is in pursuit of fusion energy, and recently expanded its scope to include next generation nuclear fission.

Lipson was previously executive vice president and CLO for the gold mining giant Newmont Corporation, departing after 18 years in 2023.

“Nancy’s deep expertise in areas of corporate strategy, governance, compliance, and sustainability will be key assets as Zap pursues its integrated approach to advanced nuclear,” Zap posted on LinkedIn.

— Jyoti Shukla was named chief product and technology officer at KEXP, a nonprofit radio station serving Seattle and the Bay Area. The station includes community and performance spaces, and features wide-ranging music genres.

“There is a lot of meaningful work ahead, and I’m excited to keep learning, building, and partnering with an amazing team as we shape what’s next,” Shukla said on LinkedIn.

Prior to taking the role, Shukla served on KEXP’s board of directors and was senior vice president of product design at SiriusXM. She has also worked in tech leadership roles at Nordstrom and Starbucks, and started her career at Microsoft.

— ZEV Co-op, a Washington-based nonprofit EV carshare cooperative, announced Ry Armstrong as its new executive director. Armstrong was previously at Sustainable Seattle, where they served as co-director. 

— Tirzah VanDamme has joined Gagen MacDonald as senior director of AI and digital transformation. She brings more than 20 years of experience and was most recently at Microsoft.

— The Washington State Academy of Sciences (WSAS) announced the election four new board members. They are:

• Amanda Boyd, executive director of Native American Programs and Professor in the Elson S. Floyd College of Medicine at Washington State Universit
• Mary Czerwinski, former research manager at Microsoft Research
• John Stein, former science and research director of NOAA Fisheries’ Northwest Fisheries Science Center
• Judith Wasserheit, professor emerita of Global Health, Medicine, and Epidemiology at the University of Washington

WSAS also elected 30 new members, who will assist the organization in providing scientific and technical information to state policymakers.

They include 26 scientists and engineers elected by their WSAS peers and four members recently elected to the National Academies of Science, Engineering, or Medicine or awarded the Nobel Prize and who reside or work in Washington state.

The members include 11 UW professors and eight from WSU, five researchers from Pacific Northwest National Laboratory, three from Fred Hutch Cancer Center, and three at private companies, with some participants holding roles at multiple institutions.

GeekWire is profiling over the next few weeks some of the people and teams that are shaping the evolution of Microsoft in what we’re calling its “Microsoft 2.5” era.

AI has had an impact on just about every tech-product category, but especially security. Attackers are using AI; customers are looking to defend with AI. The goalposts keep shifting. “Agentic security” is now the holy grail, and Hayete Gallot, the newly minted executive vice president of Microsoft Security, is leading the charge toward it.

Gallot, a 16-plus-year Microsoft veteran who rejoined the company in February after a 1.5-year Google detour, replaced Charlie Bell, who came to Microsoft from AWS in 2021 and continues at the company as an individual contributor focused on engineering quality.

“Customers care about two things: solving for security and being able to afford it,” Gallot said when I asked during our interview this week why she came back to Microsoft.

“I am a problem solver. And an engineer at heart (and by training). Security is the most important problem right now — and Microsoft is the only place with all of the puzzle pieces to help our customers.”

Since her return, Gallot hasn’t been shy about shaking things up. As noted recently by The Information, at least nine corporate vice presidents who previously reported to Bell have left the company this year.

“We’re making changes to ensure we’re in the best formation to go after this opportunity,” she acknowledged.

“I’m motivated by doing the right thing for our customers, my teams, and tech outcomes,” she said. “I like to move quickly: days and weeks, not months and years, learning through execution, iterating rapidly, and adjusting based on real customer signals.”

The company isn’t starting from scratch. As of 2021, Microsoft claimed security was a $10 billion business for the company. By 2023, security had reached a $20 billion annual revenue rate, officials said.

Those claims haven’t been without controversy. Microsoft has built a huge business in finding and fixing security problems which some customers felt were of the company’s own making.

Microsoft has a wide-ranging and rather unwieldy security portfolio, encompassing identity management (Entra), endpoint protection (Defender), endpoint management (Intune), security information and event management (Sentinel), and compliance (Purview), among others.

In 2023, Microsoft introduced its Security Copilot set of AI analysis services that integrated with some of its existing security offerings. But a portal-based solution like Security Copilot doesn’t offer the kind of end-to-end coverage that an agentic security platform can, Gallot said.

The problem is that attackers are using agents, too. Customers need real-time insight into what’s happening in their environment, and the ability to act just as quickly, Gallot said.

Agentic security is about “taking the signals and turning them into a graph that is useful,” Gallot said. “If you’re trying to reason about 100 trillion signals, it’s not really effective.” The graph, she said, lets agents pick the right model for each threat and close the loop.

In practice, that means the system can quarantine a device or revoke access on its own, for example, rather than waiting for a human.

Microsoft’s core existing security products will continue to play a role as the landscape evolves, both spotting the problems and acting on them. Security Copilot isn’t going away in the process: “You’ll have Copilot and you’ll have agentic security,” she said.

The company’s new Agent 365 “control plane” — a central console for tracking every AI agent a company runs — fits in by letting customers see the “blast radius” of an agent, meaning everything a hijacked agent could reach, Gallot said. It’s similar in concept to Zero Trust, the “never trust, always verify” security model that limited how far an attacker could get with a stolen employee login, but applied now to agents rather than people.

So what exactly is this ‘agentic security’ thing? Microsoft has a whole website dedicated to the very topic.

Traditional AI security and agentic AI security are fundamentally different, Microsoft says. Agentic security doesn’t just protect models and training data; it also can protect tools, workflows, memory, connected systems and more. Because agents can take action, the potential positive and negative stakes are higher.

While AI has helped businesses make strides in finding and fixing vulnerabilities, it hasn’t gone much beyond that. Microsoft introduced its multi-model agentic scanning harness (MDASH) as its first step into the agentic security space, Gallot said.

The company used MDASH internally to boost finding and fixing Windows security issues, and it is now making it available to select customers in an expanded preview. MDASH will allow customers to use the best model for the right task to secure all different types of code bases, she said.

Microsoft is rumored to be readying a more comprehensive agentic security offering, of which MDASH is likely just one piece.

Microsoft is far from the only one doing this. AWS, Anthropic, and OpenAI are offering security tools on their platforms, and dedicated security vendors are building their own agentic platforms.

Microsoft has the advantage of scale in the enterprise. The question is whether Gallot and her new leadership team can turn that scale and emerging AI tools into both a bigger business for the company and better protection for its customers.

Nearly 20 years ago (!), in 2007, I published my first and only book: Microsoft 2.0. It focused on changes I expected at the company in the “Post-Gates” era. What would remain the same and what likely would be different once co-founder and CEO Bill Gates had left the building?

CEO Satya Nadella has not exited the company (yet). But there’s no question that Microsoft and its mission have morphed considerably in the past year or two. I’m not quite ready to christen this the Microsoft 3.0 era, even though Nadella handed the reins of Microsoft’s dominant commercial business to Judson Althoff nearly a year ago.

That decision resulted in Nadella moving into more of a “founder mode” role, allowing him to focus less on the day-to-day work of running the business. (Microsoft historians may recall that Gates made a somewhat similar move back in 2000 when he became Microsoft’s chief software architect.)

While it might not yet be time for Microsoft 3.0, we arguably could be in the “Microsoft 2.5” era. Windows and Office are still around and still play a big role. Microsoft still builds and sells developer tools and databases. But there’s no question that the cloud and all things AI are at the top of the pecking order now.

I’m embarking on a series here at GeekWire that will focus on what matters to Microsoft and, by extension, to its customers, partners, investors, and employees these days. Who are some of the people shaping and leading the company? What are their opportunities and challenges right now?

Over the next few weeks, I will be profiling various Microsoft execs working on plans for Microsoft’s ongoing evolution. Some are company veterans; some are newcomers. I’ll be talking with top execs from Microsoft’s Security, Copilot, Windows + Devices, Xbox, GitHub, and more.

I’m interested in their strategies for Microsoft’s key products and technologies and how they plan to try to turn Microsoft’s ambitious vision into reality. What are their teams building? What do they see as their biggest challenges and opportunities? And where do they see the technologies in their respective areas heading?

I feel like many of us who’ve been keeping track of the biggest tech companies (myself included) have fallen into the trap of blaming or attributing everything a company does to AI. Layoffs? AI is the culprit. Price increases? It’s all thanks to AI. Changing sales strategies? Chalk it up to AI …

But upon further reflection, I believe Microsoft’s strategy is more nuanced than “AI or bust.” There’s no question that Microsoft’s AI ambitions are shaping its goals and tactics. But Microsoft, as a heavily enterprise-focused entity, can’t simply stop supporting products that aren’t built from the ground up with AI (as much as it might like to do so). Nor can it just leave behind customers who aren’t 100% onboard with its AI moves.

Couple those enterprise hurdles with some not-so-popular consumer decisions, like axing 3,200 people in the gaming unit, and Microsoft’s approach to turning the ship looks a lot trickier.

Read the first installment in the series, profiling new Microsoft Security EVP Hayete Gallot, who’s revamping the group’s leadership as the company pushes into the agentic security.

Microsoft is putting $60 million behind the U.S. Department of Energy’s Genesis Mission, a push to use artificial intelligence to speed up scientific research across the government’s 17 national labs.

The company’s investment is split into two pieces: $40 million in Azure cloud computing and AI credits over three years, and $20 million for engineering and deployment help to get DOE researchers actually using the tools, Microsoft said in a blog post Wednesday.

Microsoft is also launching a new internal group called SPARK — Scientific Partnership Advancing Research & Knowledge — to serve as the single point of contact between the company and DOE on Genesis Mission work. It’s meant to combine Microsoft’s program management, engineering, security and research teams into one coordinated effort, instead of leaving individual labs to navigate Microsoft on their own.

President Trump created the Genesis Mission through an executive order in November 2025, directing DOE to build a unified computing and data platform — since named the American Science and Security Platform — that connects the national labs’ supercomputers, AI tools and scientific datasets.

The order likened the effort’s urgency and ambition to the Manhattan Project, and the White House said it’s expanded into a whole-of-government initiative involving more than 15 federal agencies, backed by more than $5 billion in commitments.

Microsoft named four initial projects taking shape under the partnership, including work with Pacific Northwest National Laboratory in Richland, Wash., to speed up the discovery of new energy storage materials — cutting analysis that used to take years down to weeks — and autonomous lab work with Lawrence Livermore National Laboratory aimed at detecting biological threats earlier.

“We move faster together,” Chris Barry, president of Microsoft’s U.S. Public Sector business, wrote in the blog post announcing the commitment, framing the investment as both a “national security imperative” and economic opportunity for the U.S.

Microsoft isn’t the only Seattle-area cloud giant courting the Genesis Mission. Amazon Web Services was recognized by DOE as a Genesis Mission supporter in December, highlighting its work with Idaho National Laboratory on AI tools for nuclear reactor design, and the company launched its own Genesis Accelerator Initiative in February, offering up to $50 million in cloud credits for DOE-related research over three years.

Google also announced Wednesday that it was committing $40 million of AI tokens and cloud credits for researchers in support of the Genesis Mission.

Microsoft Chief Sustainability Officer Melanie Nakagawa faced a barrage of pointed questions from the audience Friday during a session at the annual Pacific Northwest Climate Week in Seattle.

Protesters challenged Nakagawa through most of the 30-minute session held in a conference room at Seattle’s City Hall, calling out the company’s use of fossil fuel energy sources to power its AI data centers and challenging Microsoft’s commitment to climate goals set years ago.

As a reporter covering sustainability issues for GeekWire, I moderated the session. Many of the issues raised by the crowd were on my list of questions for Nakagawa. The disruptions also included chants from protesters seated among attendees, at times going beyond climate issues to condemn Microsoft’s technology deals with Israel.

Security guards ultimately ushered some protesters out of the space, while others remained. Interruptions from the audience continued for all but the final 10 minutes of the session.

The event capped off Pacific Northwest Climate Week, which included conversations around the city and region about climate change solutions, policies and innovations.

Microsoft has for many years been viewed as an environmental corporate leader, setting an ambitious goal in 2020 to become carbon negative within a decade. It created an internal carbon tax — one of the corporate world’s largest — that charges individual Microsoft divisions for emissions from sources like air travel to fund climate-friendly initiatives. The company is credited with helping create and sustain the carbon dioxide removal sector, among other roles.

But the rapid expansion of AI data centers and their huge energy demands are undercutting Microsoft’s standing. The company recently released its annual sustainability report, disclosing that its carbon footprint grew 25% last year, moving it further from its 2030 target.

One protester’s question was about a deal announced earlier this year in which Microsoft is partnering with Chevron to build a 2.7 gigawatt natural gas facility to power a data center campus in Texas. I asked Nakagawa how the company defends the agreement, and she pointed to the 4.7 gigawatts of renewable energy that Microsoft has supported in the state. I followed up by asking about the Redmond, Wash.-based company’s commitment to carbon dioxide removal (CDR) projects given recent reports about a pause on new deals.

Nakagawa was unable to answer before the crowd drowned her out with a call-and-response chant: “Microsoft, you can’t hide. We can see your dirty side.”

Another protester criticized the escalating pursuit of AI. “You’re selling us a product that we don’t even need, and we never should ask for,” he said. “No one wants AI. You’re destroying the climate with AI.”

I brought up legislation proposed earlier this year in Washington to mandate clean energy use and bring transparency to data center impacts in the state. Microsoft opposed and helped defeat the bill, though the company says it wants to work with lawmakers to pass rules next year. I asked what needed to change in the legislation for Microsoft to support it.

Nakagawa didn’t provide specifics, but noted that this year, for the first time, the company shared facility-level information in its annual report on electricity and water use for data centers worldwide.

“People want to know more about the data, and we believe you can have an honest and candid conversation with transparency and access to that information and data,” she said.

Given the obvious public concerns, I asked Nakagawa, “Do you really honestly believe that by 2030, the company can hit that carbon-negative goal?”

Nakagawa pointed to wide-ranging initiatives that are starting to help curb specific emissions, including investments to make Xbox devices lower carbon and financial support for the recent opening of a production plant in Moses Lake, Wash., for sustainable aviation fuel company Twelve.

“There are a couple areas where we’re seeing a lot of promising progress,” she said. “Look, this is going to be a hard target. We’ve not been at all shying away from the fact that this is a difficult goal.”

Fresh off a $2 billion fundraising and $900 million line of credit, London-based data center startup Nscale is planning a big expansion at a new engineering office in Bellevue, Wash.

Nscale, one of the fastest-growing companies building AI computing infrastructure, recently inked a deal for nearly 24,000 square feet of space at The Eight office tower in downtown Bellevue.

The office is slated to open in January 2027. It will serve as Nscale’s primary engineering hub in the United States, a company spokesperson said. The company currently employs about 50 people in the Seattle area, and the new office will be able to accommodate up to 250 people.

The company earlier this year hired Nidhi Chappell, the former Microsoft corporate vice president who led Azure AI and high-performance computing infrastructure, including the supercomputers that power ChatGPT. As Nscale’s new president of AI infrastructure, based in the Seattle area, Chappell will oversee the company’s global engineering and data center operations.

“I’ve had a front-row seat to some of the biggest moments in AI over the past several years, but one thing has always stood out: the world remembers the breakthroughs, but it’s the people building the infrastructure behind the scenes who make them possible,” Chappell wrote in a LinkedIn post last week announcing the company’s first “onboarding” event in Seattle.

Nscale, which is also preparing to open an office in New York, said it selected Bellevue because of the Seattle region’s concentration of AI infrastructure talent and its proximity to major customers.

Microsoft is one example. Earlier this year, the companies announced an expanded collaboration to deploy Microsoft’s next-generation AI infrastructure across Europe, including large-scale installations of NVIDIA Vera Rubin GPUs in Norway, Portugal and other locations. Nscale said it would be among the first providers outside of Microsoft to deploy the Vera Rubin platform, supporting Microsoft’s growing AI cloud infrastructure.

The new office is the latest sign of Bellevue’s growing role in the AI economy. The Eastside has become a magnet for companies building AI applications and infrastructure, with xAI, OpenAI, Databricks, CoreWeave, Armada, Anduril and others establishing and expanding offices.

AI companies have been giving a boost to the regional office market overall. Claude maker Anthropic, for example, recently announced an expansion of its offices in Dexter Yard in Seattle.

Nscale was founded in 2024. Its $2 billion funding round earlier this year valued the company at $14.6 billion, believed to be the largest Series C financing ever raised by a European technology company. The capital is being used to expand Nscale’s AI cloud platform, GPU infrastructure and data center footprint across North America and Europe.

Its backers include Astra Capital Management, Citadel, Dell, Jane Street, Lenovo, Linden Advisors, Nokia, NVIDIA and Point72.

News of the Nscale office in Bellevue was first reported by the Puget Sound Business Journal.

The Seattle Sounders paused before Thursday night’s rivalry match against the Portland Timbers to honor one of their own.

Before the match at Lumen Field, the club paid tribute to S. “Soma” Somasegar, the longtime Microsoft executive, Madrona venture capitalist and Sounders minority owner who died in May at age 59. Fans stood in silence as Somasegar’s image appeared on the stadium video boards.

Somasegar joined the Sounders ownership group in 2019, part of a wave of Seattle tech leaders — including Microsoft CEO Satya Nadella — who bought in that year.

After his death, the club said Somasegar viewed sports as a way to bring people together, and credited him and his wife, Akila, with strengthening the Sounders and Seattle Reign communities.

GeekWire chronicled the outpouring of tributes after Somasegar’s death, as colleagues, founders and friends remembered the former Microsoft executive and venture capitalist for his humility, generosity and commitment to helping others succeed.

During his 27 years at Microsoft, he helped lead the company’s developer tools business before spending more than a decade at Madrona, where he backed and advised a new generation of cloud and AI startups.

— F5 named former Amazon executive Cathy Peterman as executive vice president and chief people officer of the Seattle-based application-delivery and security company. In May, F5 celebrated its 30th year in business.

“Cathy brings a rare combination of strategic depth and genuine humanity that will raise the bar for how we invest in our people,” said CEO François Locoh-Donou in a statement. “She and I share a reverence for culture and its impact on driving sustained results.”

Peterman joins F5 from Wayfair, where she served as CPO for the retail company’s technology organization. Prior to that, she was with Amazon for more than five years, departing as the HR executive for advertising products and technology.

— After more than 27 years at Microsoft, Rudra Mitra has announced his departure. He leaves the role of corporate vice president and head of Microsoft Security Purview, a team addressing data security and governance focused on artificial intelligence and AI agents.

Mitra joined the Redmond, Wash.-based tech giant straight out of college as a software engineer. He has led work on products including Office, Windows Live and Microsoft 365 Cloud Infrastructure.

“Microsoft is a very special place full of incredibly talented people, and this decision comes with gratitude, happiness, and optimism for the future,” he said on LinkedIn. Mitra did not share his next move, saying only that there is “more on that soon.”

— Markham McIntyre, who previously led Seattle’s Office of Economic Development, is now executive director of Climate Surge, which is described as a “project built to accelerate the deployment of climate policies and market solutions in Washington.”

The effort works with corporations, heavy industry, government, developers, advocates, and philanthropy, and is a partnership between Earth Finance, Climate Solutions and Stolte Foundation.

Prior to his role with the city of Seattle, McIntyre was at the Seattle Metropolitan Chamber for more than eight years, leaving in 2022 as executive vice president.

— Qualtrics, an experience management technology company with headquarters in Seattle and Provo, Utah, announced a slate of new hires, all of whom appear to be working remotely:

• Adam Block was named chief sales officer, joining from Motive where he was chief revenue officer.
• Ken Coleman was named senior vice president of marketing, coming from Ramsey Solutions.
• Khoi Hoang was named leader of the global sales engineering organization, joining from Salesforce.
• Aaron Ellis was named leader of corporate sales, joining from Workday.

Qualtrics previously shared news that it promoted Ken Hoang to senior vice president of product.

— Jay Shankar, Amazon’s former vice president of global talent acquisition, has joined Uber in a comparable role. Shankar, who is based in San Francisco, resigned from Amazon in December. Past employers include Adobe and BMC Software.

“When I joined AWS almost 8 years ago to lead recruiting, I had never run a talent acquisition organization. What I discovered was a team of builders who showed me that this work is fundamentally about investing in people and obsessing over customer needs,” Shankar said on LinkedIn.

— Jamie Boyd has joined the advisory board for Seattle’s GemaTEG, a startup building technology to manage the heat produced by computer chips. Boyd is a founder of Cypress Capital Holdings and previously helped build Cascadia, an investment banking franchise focused on energy and climate technologies.

— Seattle immigration tech startup Casium named Kat Kelley as its founding go-to-market lead. Kelley joins from Teaching Strategies, a digital education company, and past employers include Rectxt and brightwheel.

— Wilson Sonsini Goodrich & Rosati, a firm that specializes in corporate and technology-focused legal work, announced that Ty Kayam has joined as counsel in Seattle, expanding the firm’s healthcare regulatory team.

— Rogo named Joe Xavier as chief technology officer of the New York-based finance platform. Early in his career, Xavier held leadership roles at Amazon and Microsoft, and more recently served as Grammarly’s CTO. At Rogo, he will help establish a San Francisco office.

— And in case you missed it: Dave Brown, senior vice president of Amazon Web Services leading its compute, AI and machine learning operations, is leaving after nearly 19 years. He is departing at the end of this month, and Amazon exec Dave Treadwell will take over the group. Read more in this GeekWire story.

— Rina Hahn has left Seattle’s Remitly as chief marketing officer. Hahn joined the remittance company in 2018 as director of digital marketing and rose to CMO after four years. Before joining Remitly, she was an executive at Blue Nile and Big Fish Games.

The publicly traded company helps customers in more than 170 countries send money internationally.

“I’ve seen firsthand the deep love this company has for its customers and the impact that purpose-driven work can have on immigrants and their families around the world,” she said on LinkedIn. Hahn, who is based in London, did not share her next move. Remitly co-founder Matt Oppenheimer stepped down as CEO in February.

— Temporal announced that Preeti Somal has been promoted to executive vice president in a role that will oversee the company’s engineering, product and design operations, which were recently reorganized under a single leader.

The industry is moving so fast that “we can’t afford any distance between the people who decide what to build and the people who build it. Unifying these functions closes that loop,” said CEO Samar Abbas on LinkedIn.

Somal has been with Temporal for three years, joining from HashiCorp where she held EVP roles.

The Seattle-area software company offers a platform for running complex computer workflows more reliably. In February, the business closed a $300 million round that pushed its valuation to $5 billion. Temporal is No. 2 on the GeekWire 200 is a ranked index of the Pacific Northwest’s top startups.

— Veeam Software, a Seattle-based data protection and ransomware recovery company, appointed Michelle Graff as senior vice president of global partners and channel. She joins from the cybersecurity company Commvault and is based in the San Francisco Bay Area.

“The future belongs to organizations that can transform trusted data into trusted AI with resilience built in from the start,” Graff said on LinkedIn.

Graff’s hiring is the latest in a string of leadership changes at Veeam, which has made five other executive hires or promotions this year.

— Qualtrics, an experience management technology company with headquarters in Seattle and Provo, Utah, has promoted Ken Hoang to senior vice president of product. Hoang is based in San Mateo, Calif., and will work remotely. He was previously a VP at Apptio in Bellevue, Wash.

Qualtrics had a big leadership shakeup in April, when five executives were let go in what CEO Jason Maynard described as an effort to “simplify our structure and ensure we are positioned for our next phase of growth.” Two product executives were among those who left, and Hoang joined the company around that time.

Qualtrics, which employs more than 4,500 people globally, makes software that helps companies gather and act on feedback from customers, employees and others through surveys, AI-powered analytics and other tools.

— Monica Lazo is now the sales director for Loopr AI, a Seattle startup that sells computer vision quality control software to manufacturing firms. She joins from Neurala, an AI platform automating visual inspections that is based in Boston.

— Pacific Northwest National Laboratory has named atmospheric scientist Larry Berg as the director of the Department of Energy’s Atmospheric Radiation Measurement User Facility.

And some departures from Big Tech:

• Mary Birkner is retiring from Microsoft after 21 years, primarily in leadership with Xbox. “I thank you for the laughter and goodness that were part of the journey to all the big work stuff,” she said on LinkedIn.
• Steve Andrews has closed out a 32-year career that included more than 11 years across two stints at Amazon, most recently as senior principal technical program manager. The TPM role “is often misunderstood and misused, so I dedicated a substantial amount of effort helping to set TPMs, their managers, and their teams up for success across the company,” he said. “I hope it made a difference.”
• Jeff Nienaber is departing Microsoft after more than 16 years, leaving the role of senior director and principal PM for the office of the CTO. “I’m really excited to see what tomorrow’s sunrise has in store,” Nienaber said.

Seattle-area startups raised $2.7 billion in venture funding through the first half of 2026, across 163 deals, down about 40% from $4.5 billion in 210 deals during the same period a year ago.

The figures come from the recently released PitchBook-NVCA Venture Monitor report for Q2 2026. The decline in capital reflects fewer deals across the board in the Seattle region, with much of the funding going to a handful of large rounds for energy, cybersecurity, and space startups.

Here is the region’s top 5 for the second quarter, as tracked in the report:

• Helion Energy’s $465 million Series G round was the biggest deal of the quarter.
• Starcloud raised $170 million for space-based data centers.
• XBOW pulled in $155 million for autonomous cybersecurity systems.
• Starfish Space closed about $110 million for spacecraft servicing.
• Gradial raised $65 million for its agentic enterprise software platform.

Against the AI grain: In Q2 2026 specifically, startups in the Seattle area closed 85 deals totaling $1.5 billion. That was down from 101 deals and $2.3 billion in the same quarter a year ago, but up from Q1 2026, which PitchBook revised to 78 deals and $1.2 billion as part of its regular data updates.

Heavy infrastructure investments by Microsoft and Amazon have helped to establish the Seattle area as an AI hub, but the region’s pure-play AI startups, on the whole, aren’t seeing investment on the same scale as some of their peers in Silicon Valley and other tech hubs around the country.

That creates a disconnect with the larger U.S. venture capital market. AI companies accounted for 86% of all U.S. venture dollars in the first half of the year, according to the PitchBook-NVCA data.

Nationally, it was a record half: U.S. startups raised $412.7 billion through June, already surpassing the full-year record of $358.6 billion set in 2021. But the number is misleading. Deals of $100 million or more accounted for 87.5% of the total, and AI companies captured 86 cents of every venture dollar.

OpenAI and Anthropic alone absorbed roughly 43% of all global venture capital in the first half of the year, by one estimate. The Bay Area, home to both, pulled in $319 billion, about three times its H1 2025 total.

Strip out those two companies and the national picture looks very different. Seed funding fell 27% nationally in the first half, and first-time fund formation is on pace for its lowest year since 2016.

Regional trends: In that way, what’s happening in the Seattle area reflects the current realities of the market. However, the region is also slipping relative to its peers in the latest numbers.

Among the 10 largest U.S. metro areas for venture funding, Seattle ranked seventh by capital invested in the first half of the year, down from fifth in H1 2025. By deal count, the region was last in the top 10.

The data used in this analysis covers the Seattle-Tacoma combined statistical area (CSA), a broader regional boundary that includes communities beyond the core metro region.

Political climate: Washington’s shifting tax and economic landscape adds another variable.

The state now taxes capital gains at up to 9.9%, a new millionaires’ tax takes effect in 2028, and legislators this year floated taxing the federal QSBS exemption that startup founders and early employees rely on when they sell shares at exit. That bill didn’t pass, but generated enough alarm to cause a backlash from startup community leaders and investors.

Looking ahead: Blue Origin, Jeff Bezos’ Kent-based space company, is reportedly seeking up to $10 billion in what would be its first outside funding round. A deal that size would be larger than every other Seattle-area venture round this year combined.

“Speak softly and carry a big prompt.”

That’s not exactly how Theodore Roosevelt put it, but presidential historian Doris Kearns Goodwin found herself face to face with an AI-powered version of the 26th president at the newly opened Theodore Roosevelt Presidential Library in Medora, N.D. — and she had questions.

Goodwin is among the high-profile visitors to interact with the lifelike, immersive version of Roosevelt that is able to discuss his life, leadership and legacy.

A week after a visit from President Trump, Goodwin joined Microsoft President Brad Smith at the library to learn how the tech giant’s AI is being used to help the institution — and the Roosevelt avatar — speak directly to future generations.

“Who better to put our avatar to the test than American historian Doris Kearns Goodwin,” Smith wrote on LinkedIn on Sunday, where he shared a video of a clearly giddy Goodwin meeting the digital Roosevelt.

“I’ve been wanting to meet you for such a long time,” Goodwin said. “I feel like I’ve lived with you for 10 years of my life when I wrote a first book about you.”

Goodwin asked Roosevelt questions about his relationship with JP Morgan, the changing will of the country, and how it was presumed that when he neared death, Roosevelt would still be fighting and still be in the arena.

“I never cared how’d I’d be remembered by the historians,” the avatar said. “Still swinging, still loud, still on your feet. If folks say I managed that, well, I’m glad of it.”

A Pulitzer Prize-winning biographer who has written extensively about presidents and American history, Goodwin was moved by the interaction.

“Wow,” she said. “It’s amazing.”

The AI works as part of Box 1, the knowledge base backbone of the museum, powered by technology Microsoft helped create. According to a July 1 Microsoft blog post, the system is loaded with hundreds of thousands of archival documents, and AI is used to “organize, enrich and reconstruct fragmented materials into searchable, contextualized historical records.”

Box 1 and AI also power The Campfire Reading Room, a digital research tool that anyone anywhere in the world can use to search through Roosevelt’s writings, letters, images and historical materials.

Microsoft donated much of its work with the library through its AI for Good Lab. The company said it plans to release a paper documenting exactly how the technology works and to open source the software used in the project.

As technology evolves, the library will evolve with it, Microsoft said. When more documents are added to Box 1 or as generative AI improves, the Roosevelt avatar will automatically update with the additional context.

“That’s why we call it a living library,” said Laura Hoffman, senior director of the AI for Good Lab. “One of the most challenging things for cultural institutions is to continue to keep their experiences feeling relevant and fresh. This is what’s great about AI technology: It will continue to get better and better.”

On this week’s show, we’re on the GeekWire deck for our annual founder open house, where we dig into Microsoft’s latest round of layoffs — including a major Xbox shakeup — and the surprising rise of hardware companies on the GeekWire 200.

Then we sit down with four guests to talk about how AI is reshaping how they build: 

• Jana Schuster of StackIQ, whose AI-native platform helps companies find redundancy in their software spending — like Rocket Money, but for business — with a small team.
• Blake Resnick and David Benowitz of Brinc Drones, whose mechanical engineers are now vibe coding their own prototypes;
• Boaz Ashkenazy of Shift AI, who’s setting up always-on agents and rethinking how we interact with AI tools.

Finally, this week’s GeekWire Trivia Challenge: how a longtime T-Mobile executive got his start in the wireless business, and the star-studded history of T-Mobile celebrity endorsers.

Stories mentioned:

• Microsoft cuts 4,800 jobs, about 2% globally, revamps salesforce and launches massive Xbox overhaul
• GeekWire 200 update: New unicorns and a hardware surge remake our list of top Pacific NW startups
• Former GitHub CEO’s startup Entire unveils its answer to the crush of AI coding agents
• Chicago software company plants flag in Seattle area as new leadership team seeks AI talent
• T-Mobile exec Mike Katz exits after 28 years, as carrier reshuffles top ranks and taps ex-AT&T leader

Audio editing by Curt Milton.

Which is worse, sailing your superyacht through the city where your company just made mass job cuts, or getting named to a U.S. Federal Reserve panel on jobs and productivity three days after announcing thousands of layoffs?

It might not be a full Zuck, but Microsoft Xbox CEO Asha Sharma is getting lots of attention, and not in a good way, for the latter this week.

Sharma was named Thursday to co-lead a new Federal Reserve “Productivity and Jobs” task force, charged with assessing the economic impact of AI and other new technologies on the labor market. Her co-leaders: Marc Andreessen, the venture capitalist and vocal AI booster, and Stanford economist Charles I. Jones, who is currently on leave at Anthropic, maker of the Claude AI chatbot.

The gaming press, as you can imagine, is having a field day. The headline from Kotaku sums it up: “Xbox CEO Will Advise Federal Reserve On Jobs After Mass Layoffs.”

PC Gamer, for its part, noted that the task force is supposed to represent a “commitment to price stability and maximum employment.” However, that’s the Fed’s broad mandate, as described by Chairman Kevin Warsh. It’s actually not the specific mission of the Productivity and Jobs task force, which is narrower: assessing what AI and other new technologies are doing to the economy.

In a separate sign of the backlash, Microsoft communications chief Frank Shaw took to X on Friday to knock down claims that the Xbox cuts were made to replace employees with foreign workers, calling it “bad information” and noting that the H-1B visa figures being cited are company-wide renewals, not Xbox-specific. He also pointed out that Sharma is “an American born, raised, and educated CEO, from Wisconsin.”

Also lost in the coverage of the Fed appointment is the fact that Sharma is less than five months into the job, having taken over as Xbox CEO in February with a mandate to turn around and preserve a gaming division that spent more than $20 billion over five years while its core revenue shrank. The restructuring announced this week is a key part of that effort.

What’s more, it’s hard to imagine that this is the timing Microsoft or Sharma wanted. Announcements like this are often outside the control of the participants. The Federal Reserve sets its own schedule.

Still, it’s tough timing for an executive who announced plans this week to cut 3,200 gaming jobs — about 1,600 immediately, with the rest over the coming year — amounting to roughly 20% of Xbox’s workforce. Sharma herself called it the most significant restructuring in the division’s history.

Meta CEO Mark Zuckerberg’s superyacht Launchpad, for the record, is currently cruising the waters off Juneau, Alaska, a full 900 miles from Seattle.

Commentary: The last couple of weeks have served as a capstone to what’s become a bad few years for the international video game industry. Now it appears the larger sector is headed directly into a significant crash, as several unsustainable practices all seem to be approaching a crisis point at once.

The first and most obvious issue is the ongoing component shortage. Due to the rush to build AI data centers, both RAM and solid-state drives have risen dramatically in price in 2026, with analysts forecasting that costs might not settle back down until at least 2028.

Both the PlayStation 5 and Xbox Series X|S are at the point in their life cycle when they’d ordinarily be declining in per-unit costs as the technology matured. Instead, both Sony and Microsoft have raised console prices multiple times this year due to the high demand for parts.

This would ordinarily be a great time to get into video games, as we’re almost six years into the current console generation. Instead, it’s one of the worst. The base PS5 and Series X are about as expensive as they were at launch in November 2020, and building a new gaming PC right now can be costly.

The component crunch also harmed the debut of Valve’s new Steam Machine, which officially launched late last month with a starting MSRP of $1,049. Valve, based in Bellevue, Wash., was forced to offer the new hardware at a significantly higher price than planned due to the difficulty in getting components.

That’s been reflected in its early reviews, with many outlets noting that the Steam Machine’s current price doesn’t match its power. At $700, the Machine would be a great gateway product for PC gaming, the way the Steam Deck was, and a genuine competitor in the console field, but a $1,049 price tag makes it an expensive curiosity for financially secure gadget-heads.

Another bad sign came from Sony’s recent announcement that it would sunset physical media for the PlayStation platform by 2028. This decision, which allegedly took many of Sony’s publishing partners by surprise, has serious knock-on effects for collectors, historians, developers, and most prominently consumers.

Sony has already caught one lawsuit over alleged market exploitation on the PlayStation Store, and that was a few days before it announced it wants to kill discs. An all-digital PlayStation library means that Sony would get to exercise full monopolistic control over pricing and access for every game it sells; licensing agreements mean that anything purchased on a digital storefront like the PlayStation Store is subject to deletion at any time without notice; and players wouldn’t be able to resort to any of the usual cost-cutting measures such as bargain bins, buying used copies, or even trading games with a friend.

That suggests that Sony has decided its best path forward is to continue to extract money from its established audience, rather than to have more options in place for gaming on a budget. There are free-to-play games on the PS5, of course, but most if not all are cross-platform and/or designed as money sinks. Ask any parent whose kids accidentally ran up a big tab in Fortnite.

If Sony has decided to end physical media, then it’s likely Microsoft will follow suit. While Xbox hasn’t mentioned its next-generation console, codenamed Project Helix, for a hot minute, it has been eager to get rid of discs since at least 2013. Some sources, such as Windows Central, allege that Xbox is already planning to do so.

(Meanwhile, Nintendo is likely to do its own thing. While Nintendo has been forced to raise the price of the Switch 2 alongside its competitors, it has offered no sign that it plans to stop selling game cards or Switch cartridges. In an uncertain world, Nintendo can be relied upon to only ever follow its own peculiar instincts.)

This sets up an early look at the environment that surrounds the 10th generation of console hardware. If both Sony and Microsoft stick to traditional timelines, we’re likely to start hearing more about the PlayStation 6 and Project Helix over the course of 2027, with launch in holiday 2027 or 2028.

If they do launch along that timeline, then it’s difficult to see how either system will retail for less than $1,000, since the storage and RAM supplies will still be constrained by that point. That automatically prices most of the potential audience out of the market. Once the starting costs hit the four-digit range, a console stops being a hobby or a toy for children and becomes an expensive extravagance. (As a general rule, you probably don’t want your console to cost significantly more than the TV you’re attaching it to.)

Further, it’s arguable that neither the PlayStation 5 nor the Xbox Series X|S have really hit their potential. Sony has famously squandered much of this generation on a largely abortive pivot to games-as-a-service, while Xbox has often seemed more interested in laying off developers than actually making or marketing games. The 9th generation of consoles has had a few big hits, but it’s mostly despite itself.

Not only is there likely to be limited demand for the 10th-generation PlayStation or Xbox, but neither of them actually seem necessary. The only reason to make them is for a brand refresh, and that’s got nothing to do with consumers.

Microsoft, following its acquisition of Activision Blizzard in 2023, is currently the second largest game developer in the world, while Sony dominates today’s console market. These two companies influence much of what happens in the modern video game industry, and as of right now, both are apparently determined to do the most short-sighted thing possible at any given time.

Sony has decided that only part of its audience actually matters, while Microsoft seems to be saddling Xbox with unrealistic expectations, possibly to justify its eventual sale or shutdown, and is ignoring at least one organized boycott.

Whenever the video game industry undergoes any kind of significant disruption, someone somewhere always asks if it’s the start of another “Crash of ‘83.” This is usually hyperbole, but it’s hard not to see the parallels between then and now: the video game market is flooded, there are few true exclusives left outside of Nintendo, many members of the gaming audience buy as few as 2 games a year, and the end of physical media will end both retail support and much of the casual audience.

This is unfolding as a slow, years-long plummet rather than the comparatively sudden shock of ‘83, but a crash is a crash. It’s avoidable, but it would require a massive, simultaneous course correction from several of the largest entertainment companies in the world.

That being said, it’s unlikely that video games as a medium are facing any kind of existential threat. Nintendo, as noted above, is well-positioned to ride out any potential problems with the larger market, PC gaming is hanging on, and the mobile sector is actually having a sort of quiet renaissance right now. There will still be video games to play in 2030, barring some larger disaster.

If there’s one big opportunity here, it’s that many of the major players in the games industry have either voluntarily abandoned the market for budget gaming or have been forced out by component costs. Some of the biggest hits of the 2020s to date, such as Vampire Survivors, Among Us, Lethal Company, and Balatro, are cheap, retro-styled games designed to run on almost any hardware, from a PlayStation 5 to your 4-year-old tablet.

The best step forward for mainstream gaming, then, might actually be to take a step back, in a similar way to projects such as Panic’s Playdate retro handheld (still going strong 5 years later) or Seattle’s Tin Can, seeing success with its land-line phones for kids and families. Chasing bigger games, higher frame-rates, and more realistic graphics for 30 years has gotten us here, up to the edge of a second major crash, while thousands of people log on every day to play games that could be run on a particularly big potato.

Instead of rushing into the 10th generation, the solution now might be to think simpler and cheaper, making smaller, more focused projects rather than the 5-year moonshot of a typical AAA game. Otherwise, mainstream video games may end up like Western comics: increasingly expensive options presented to a shrinking handful of fervent fans.

For much of the past year, the narrative surrounding Washington state’s business climate has taken a decidedly negative turn.

Business leaders have criticized a wave of new taxes approved by lawmakers. High-profile companies have announced expansions elsewhere. Entrepreneurs have questioned whether Washington remains as welcoming to innovation as it once was, prompting Gov. Bob Ferguson to launch a new Economic Development Council aimed at strengthening the state’s competitiveness.

But a new national ranking released Thursday complicates that narrative.

Washington climbed three spots to No. 11 in CNBC’s annual America’s Top States for Business rankings, up from No. 14 last year, suggesting that many of the state’s underlying competitive strengths remain intact even as debate over its business climate has intensified.

That’s the good news. The bad news: Just four years ago, Washington ranked No. 2 in the same survey. In 2017, the state was No. 1

Certainly, Washington is at a crossroads when it comes to how it thinks about its business community. The CNBC ranking and the big fluctuations over the past four years speak to the seesaw-like narrative that has taken shape.

The business climate also has been front-and-center in GeekWire’s recent coverage.

Washington lawmakers approved billions of dollars in new taxes during this year’s legislative session, including new taxes affecting many technology companies.

Ferguson subsequently created the Economic Development Council composed of leaders from companies including Microsoft, Amazon, Boeing and T-Mobile to identify ways to strengthen the state’s economy amid growing concerns about competitiveness. (GeekWire contributing columnist Charles Fitzgerald questioned why the council did not include anyone from the startup community in his recent piece: Governor’s new economic council snubs startups, forgets AI).

We also recently traveled to Cleveland to examine why Ohio has emerged as one of the country’s fastest-growing destinations for business investment and technology jobs. State leaders there have aggressively positioned Ohio as an alternative to coastal technology hubs, touting lower costs, business-friendly policies and major investments in manufacturing, semiconductors and artificial intelligence infrastructure.

That strategy appears to be paying off.

Ohio claimed CNBC’s top spot this year, overtaking last year’s winner to become America’s Top State for Business in 2026. It has been an historic climb for the Buckeye state, which ranked No. 30 in the inaugural survey in 2007 and just cracked the top 10 last year.

One of GeekWire’s key takeaways from our visit to northeast Ohio is that the entire community is unified, rowing in one common direction, from Gov. Mike DeWine to real estate developers to entrepreneurs to philanthropic organizations.

“I don’t give advice to other areas,” DeWine told us on our recent visit. “But my advice to people is, come to Ohio. Come work in Ohio. You will not find a better place, better people, quality of life. Cost of living is low compared to the two coasts.”

The ranking also comes as several prominent Washington employers have announced significant investments outside the state. Starbucks recently unveiled plans for a major corporate expansion in Nashville, while aerospace supplier Janicki Industries said it will build a large new manufacturing campus in Montana, fueling concerns among some business leaders that Washington is becoming a more difficult place to grow.

At the same time, CNBC’s methodology highlights many of the advantages that have long made Washington one of the country’s leading innovation economies. Here’s how Washington ranked per CNBC:

The network evaluates states across 10 categories using 138 metrics, including workforce, infrastructure, economy, technology and innovation, business friendliness, education, cost of doing business and quality of life. The methodology is updated annually to reflect the factors companies say matter most when making investment decisions.

While Washington continues to face challenges related to business costs and taxes, it remains home to one of the nation’s deepest concentrations of technology talent, world-class research universities, global companies including Microsoft and Amazon, and a robust startup ecosystem — strengths that continue to score well in CNBC’s analysis.

The results also underscore how different rankings can produce different conclusions depending on what they measure. The nonpartisan Tax Foundation, which focuses specifically on state tax policy, ranked Washington 45th in its 2026 State Tax Competitiveness Index, citing the state’s gross receipts-based Business & Occupation tax, taxation of business inputs and recent changes to its capital gains tax.

Seattle also recently declined in a new ranking of the best places in the U.S. to attract foreign businesses and investment. The fifth annual list compiled by British newspaper Financial Times and stock market index Nikkei ranked Seattle 13th among 95 U.S. cities — a drop of 11 places from last year’s second-place position.

Together, the rankings illustrate the complexity of evaluating a state’s business climate.

Washington continues to enjoy many of the assets that have made it one of the nation’s leading centers for technology and innovation. At the same time, business leaders have become increasingly vocal that higher taxes and rising costs could erode those advantages over time if policymakers fail to address competitiveness.

Microsoft has just four more years to reach its ambitious goal of removing more planet-warming carbon that it produces. But the company’s annual sustainability report, released Thursday, shows it’s moving in the opposite direction, as its 2025 emissions spiked 25% over the previous year.

Despite the troubling increase, Microsoft leaders say they remain committed to the longer-term goal.

“We continue to really be focused around carbon negativity by 2030,” said Melanie Nakagawa, chief sustainability officer, in an interview with GeekWire.

The Redmond, Wash.-based company is the latest tech giant to fall further behind its climate targets as they invest billions of dollars in new, energy-hungry data centers to power the AI boom. Amazon’s carbon footprint jumped 16% last year, while Google’s greenhouse gas emissions swelled 18%.

The report also shows how much energy use drove that increase, with Microsoft’s total electricity consumption growing by 24% last year.

In total, Microsoft produced 20 million metric tons of carbon dioxide equivalent in 2025, which would have been roughly 34 million metric tons without carbon reducing initiatives including purchasing clean electricity and sustainable fuels, Xbox console efficiency and Surface device decarbonization. The reduced number puts the company’s footprint roughly on par with the total emissions of Panama or Lithuania.

In addition to data center expansion, Nakagawa said, the carbon increase was also driven by Microsoft’s decision to stop buying unbundled, short-term renewable energy certificates, or RECs — a mechanism companies can use to quickly lower their reported emissions for a given year. Microsoft is instead prioritizing longer-term initiatives with bigger impact, she said.

The challenge Microsoft wants to answer, she said, is how to take a “portfolio approach” that spans carbon dioxide removal, carbon-free electricity, sustainable materials, and fuels — addressing all of them together rather than in isolation.

Where Microsoft made gains

The annual report highlighted areas of success. That includes:

• Matching its electricity consumption worldwide with clean energy sources.
• For the first time, replenishing more fresh water globally than it withdrew, making important progress on its 2030 goal of being water positive across operations.
• Achieving 92% reuse and recycling of decommissioned cloud servers and components for the second consecutive year.
• Reaching a total of 40 gigawatts of clean power purchase agreements across 26 countries, with 19 gigawatts currently online. (Forty gigawatts is roughly enough power to serve 30-40 million typical U.S. homes at once.)

Scrutiny over recent moves

Microsoft’s sustainability disclosures come after a series of announcements and news reports that have raised concerns among climate advocates.

• Last month, Microsoft and Chevron announced an agreement to build a natural gas facility in Texas with a 2.67 gigawatt capacity, providing dedicated electricity to the tech company for 20 years.
• In May, Bloomberg reported that Microsoft was considering scaling down or scuttling a pledge to match its electricity use with carbon-free power around the clock by 2030.
• In April, the New York Times reported that Microsoft was pausing future purchases of carbon removal credits, after years as the market’s top buyer.

Nakagawa said the company has not canceled any removal projects, though she did not provide specifics about new purchases going forward. “We’re just continuing to take a hard look at each of the deals that are coming through,” she said, and looking for “credible opportunities to scale.”

Asked about Microsoft’s commitment to purchasing clean energy 24/7 — an approach that would eliminate reliance on coal- or gas-powered energy when wind and solar aren’t available — Nakagawa declined to confirm it. “We still are looking towards opportunities around carbon-free electricity,” while focusing on the 2030 carbon negative goals, she said.

As to the natural gas deal, the chief sustainability officer said Microsoft has also contracted to purchase 4.7 gigawatts of renewable power in Texas alone and that the company evaluates its energy investments as part of a broader mix.

Looking for efficiencies elsewhere

Even as data centers remain the prime driver of Microsoft’s rising energy use and emissions, the company points to other steps aimed at reducing the environmental footprint of the facilities.

That includes increasing the use of lower-carbon steel and concrete and incorporating mass timber into data center buildings. And In the past year, Microsoft has added a seventh Circular Center — one of several facilities worldwide where the company recycles and reuses electronics from data center operations.

Microsoft is also working with developers to use AI models more efficiently and build right-sized products. AI agents can review, test and improve code so it uses less energy when it runs, Nakagawa said.

“I definitely think there’s an opportunity here,” she said.

Editor’s note: A correction was made regarding Microsoft’s total energy use last year, replacing a data point on Scope 2 emission, and clarifying the steps taken to reduce its carbon emissions to 20 million metric tons of carbon dioxide equivalent.

— Mike Torres, a former executive at Amazon, Microsoft and Google, has joined Dropbox as the company’s first chief product officer.

“As a product leader, joining a company that helped pioneer product-led growth is energizing…” Torres said on LinkedIn. “In this role, my focus will be simple: help Dropbox ship the right things at the right time for our customers.”

Seattle-based Torres comes to Dropbox from Google, where he served as vice president of product for Chrome. Before that, he spent more than a decade at Amazon, most recently as VP of Kindle. At Microsoft, he led teams working on OneDrive, Windows Movie Maker and other products.

— T-Mobile appointed Chris Sambar as chief enterprise officer, effective no later than Oct. 14. Sambar will lead the Bellevue, Wash.-based company’s small- and medium-sized business, enterprise and government units.

Sambar joins from Public Storage, where he serves as chief operating officer. He was previously at fellow communications giant AT&T for more than two decades, most recently as a president of the company’s global network organization overseeing architecture, engineering, construction, operations, tower strategy and program management.

“Chris is a seasoned wireless industry leader with proven experience including expanding high-growth businesses and seizing market opportunities,” said Srini Gopalan, CEO of T-Mobile.

T-Mobile made two additional C-suite changes:

Chief Business & Product Officer Mike Katz has resigned to “pursue new professional interests,” according to a press release. Katz was with the company for more than 28 years and will remain in a strategic advisory role through the end of the year. Gopalan offered his “sincere gratitude to Mike for his incredible contributions to T‑Mobile.” Read more about his departure in this GeekWire story.

André Almeida‘s C-suite role has expanded and his title has been updated to chief marketing, brand and broadband officer. He previously served as chief broadband, enterprise and emerging business officer. In the new position, Almeida will help oversee the company’s consumer wireless and broadband businesses.

— After 37 years with Microsoft, Xbox Vice President Kevin LaChapelle was among those laid off this week, with the cuts hitting the gaming division particularly hard as the company aims to overhaul the division.

LaChapelle was hired by the Redmond, Wash.-based tech giant in 1989 as a software design engineer and joined the Xbox team in 2012.

“I will say my fondest memories are of leading the team of very talented engineers who built the Xbox Backward Compatibility program,” LaChapelle said on LinkedIn. When Phil Spencer, then head of Xbox, announced the program at the Electronic Entertainment Expo in 2015, LaChapelle added, “The audience’s reaction was unbelievable.”

— Adam Schoenfeld has resigned as chief marketing officer for Inflection.io. In April, the B2B marketing automation company acquired Keyplay, a Seattle startup co-founded and previously led by Schoenfeld. The deal reunited Schoenfeld and Inflection CEO Aaron Bird, who have known each other for many years and have collaborated and invested in each other’s companies.

Schoenfeld said on LinkedIn that he “had the best of intentions” when he committed to the acquisition, but then burnout hit him. “I was embarrassed and disappointed in myself. I dreaded telling the team. I didn’t want to bail and let people down… I’m sure others have been in this place,” he added. “After facing the hard conversations, I’m excited to look ahead.”

Schoenfeld remains a part-time CMO advisor for the business and also produces Adam’s GTM Report, which provides data-backed research, maps and tools for leaders and builders in the space.

— Kent, Wash.-based Stoke Space Technologies named former OpenAI executive Kevin Weil to its board. Weil has held leadership roles at Planet, Meta, Instagram and Twitter and also serves on the boards of Cisco and The Nature Conservancy.

Stoke Space builds reusable rockets and raised $860 million from investors in its latest round. It’s No. 6 on the GeekWire 200, a ranked index of the Pacific Northwest’s top startups.

— Skippy Shaw has joined fusion startup Helion Energy as director of Washington government affairs. The Everett, Wash.-based company is working to build what could be the world’s first commercial fusion facility in Central Washington. Shaw joins Helion from The Nature Conservancy, where she led state governmental relations for TNC’s Washington chapter.

— David Langworthy announced that he has resigned from Microsoft after nearly 25 years, leaving the role of architect for Azure OpenAI. Langworthy, who worked as a founding member of Azure OpenAI, GitHub Copilot, GenAI, MAC, and Azure AI Services, is the founder and CTO of a stealth startup based in Bellevue.

— Carissa Allen has also left Microsoft, departing as director of strategy for the company’s events, including Ignite and AI Tour. On LinkedIn, Allen called her resignation after nearly 30 years “my Valiant Reboot Project (no “retirement” here) because you know I’m not finished yet.”

— And in case you missed it:

• Bill Colleran, a veteran technology executive who previously led Impinj, has joined Seattle-based AI coding startup Adronite as CEO. Edward Rothschild, who co-founded and previously led the company, is transitioning to chief technology officer. Read more in this GeekWire story.
• Nick Parker, a 26-year Microsoft veteran who led the company’s worldwide commercial sales business, is leaving to become Nvidia’s new sales chief, effective Aug. 24. Read more here.

Former GitHub CEO Thomas Dohmke‘s startup Entire is rolling out a distributed network for mirroring code repositories, making the case that centralized platforms like he once ran as part of Microsoft will struggle to handle the demands of AI coding agents on their own.

Entire, which emerged in February with a $60 million seed round, is launching a preview of its distributed Git network on Wednesday, with active regions in the U.S., Europe, and Australia. Developers can mirror an existing GitHub repository onto Entire in one step, keeping their code where it is while AI agents clone and pull from a faster, closer copy.

Dohmke cited a principle espoused by Linus Torvalds, creator of Linux and the Git version control system, in a 2007 talk: “If you’re not distributed, you’re not worth using.”

“In the era of agents, centralized Git hosting has become a fundamental constraint, as the strain of billions of agents and developers hammering a central server shows up in the form of rate limits, high latency, or even outages,” Dohmke said in a statement announcing the launch.

GitHub, which Microsoft acquired for $7.5 billion in 2018, is the dominant platform for storing and collaborating on software code. It’s built on top of Git, the open-source system that tracks changes across a codebase, which was designed from the start to work without a central server.

Dohmke, based in Bellevue, Wash., left GitHub last year after nearly four years as CEO. He co-founded Entire with Cole Driver, a former GitHub deputy chief of staff. The fully remote company has grown to more than 40 employees across nine countries.

Entire’s $60 million seed round was led by Felicis, with participation from Madrona, Microsoft’s venture arm M12, and Basis Set Ventures, along with individual investors including Yahoo co-founder Jerry Yang and Y Combinator CEO Garry Tan. Felicis called it the largest seed investment ever for a developer tools startup, valuing the company at $300 million.

“We think it can be the next great developer platform,” said Tim Porter, a Madrona managing director, in an interview this week.

He cited the company’s complementary position to the major coding agents — working in conjunction with Claude Code, Cursor, Codex, and others rather than competing with them — as a key factor driving its prospects for success.

Entire isn’t positioning itself as a direct competitor to GitHub, and the participation of M12 is a sign of the cooperative dynamic between the two. For now, the mirroring approach is designed to complement GitHub, not replace it.

Long-term, the company’s ambitions are much bigger. The announcement Wednesday morning about the preview of Entire’s distributed Git network says the company plans to ultimately let developers host new repositories natively, not just mirror existing ones.

Madrona, in a blog post earlier this year, described GitHub, while “incredibly important,” as “quickly becoming a legacy platform” and said Entire’s goal is “not only to supersede GitHub, but to superset it.”

The Seattle-based firm’s investment was led by Porter with the late S. “Soma” Somasegar, who was previously corporate vice president of Microsoft’s Developer Division and led the acquisition of Dohmke’s earlier startup, HockeyApp, announced in 2014.

Entire hasn’t disclosed pricing. Porter said the company plans to introduce commercial and individual tiers after the preview period, with a mix of seat-based and consumption-based pricing alongside a free tier and open-source components.

The new distributed Git network is one part of a broader platform. Entire also offers a tool that automatically records the reasoning and context behind AI-generated code changes — the instructions a developer gave, the steps the agent took, and why it made the choices it did — and stores them alongside the code itself in the repository.

The company says it now integrates with every major coding agent, including Claude Code, Codex, Cursor, Factory AI, and GitHub Copilot.

Entire is also announcing other new features on Wednesday:

• Entire Blame, which traces a line of code back to the agent conversation that produced it.
• Entire Review, which runs automated code reviews using that context.
• Code and Semantic Search, which queries the history of code changes and the reasoning behind them.

“Session logs are now the second most important artifact in software development,” Dohmke said in his statement, “and they belong in the repository alongside the code.”

Microsoft is cutting 4,800 jobs, just over 2% of its global workforce, citing a need to revamp its sales and consulting division to keep pace with a rapidly changing tech industry, while overhauling its Xbox business in a push for long-term growth and profitability from gaming. 

The cuts include about 600 jobs in Washington state, home to Microsoft’s Redmond headquarters. That’s down from 3,200 job reductions locally a year ago. Combined with ongoing hiring, Microsoft’s workforce in the state is expected to remain stable at around 52,000 people.

About 1,600 of the 4,800 job cuts being announced Monday are in the Xbox division. Additional Xbox layoffs in the months ahead are expected to bring total job reductions in the gaming division to roughly 3,200, or about 20% of the global Xbox workforce, this fiscal year. 

Microsoft is also spinning off four Xbox game studios to operate independently. 

In an internal memo, Xbox CEO Asha Sharma called it the biggest restructuring in Xbox history, saying the division has been “operating at margins that are 3-10x lower than comparable platform and publishing businesses” and that studios have been losing 64 cents for every dollar invested.

Overall, top executives sought to distinguish Microsoft from other tech giants, saying the cuts were minimized by the redeployment of more than 4,000 employees into new roles over the past year and a voluntary retirement program that let thousands more exit by their own choice.

By comparison, the company last year cut more than 15,000 jobs globally in two rounds of layoffs in spring and summer 2025 — the largest reductions in more than a decade.

The latest cuts come amid record capital spending on the company’s AI infrastructure, pressure from Wall Street to keep operating expenses in check, and a 30% stock slide that has wiped out roughly $1.2 trillion in Microsoft’s market value over the past nine months.

“Microsoft can only be a strong employer if it has a successful business,” said Brad Smith, its president and vice chair, in an interview with GeekWire. “We have to adapt to change.”

Before the latest cuts, the company’s total workforce was about 220,000 people. Across the company, Microsoft expects worldwide headcount to decline year-over-year, CFO Amy Hood said on an April earnings call. 

Amy Coleman, Microsoft’s chief people officer, said in a memo to employees Monday morning that the roles the company is eliminating today are not being directly replaced by AI.

At the same time, she acknowledged, “AI is changing how work gets done.” She added, “Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves.”

However, the line from Coleman’s memo that may get the most attention internally is this: “We are still early on this journey, and there will be more changes ahead; other parts of our business will need to make similar changes.”

In an interview, Coleman stopped short of signaling further layoffs across the company. Instead, she described a larger shift in how Microsoft manages its workforce. That includes reskilling engineers for customer-facing and AI-focused positions, and exploring how to make voluntary exit programs a regular part of the company’s operations — not just a one-time offer, but potentially something employees could opt into annually or on an ongoing basis.

Coleman confirmed that about 30% of roughly 8,750 eligible U.S. employees accepted Microsoft’s first-ever voluntary retirement program in recent weeks, in line with the company’s expectations, which reduced the size of the reduction in force announced Monday. 

The cutbacks and changes in the company’s sales and consulting teams build on last week’s launch of the Microsoft Frontier Company, a $2.5 billion initiative to embed 6,000 engineers inside customers to deploy AI. The shift is reducing some traditional sales and consulting roles and resulting in more technical positions working directly with customers. 

“We’re seeing that we need more engineering excellence in the customer space,” she said. 

Smith said software development is undergoing its biggest shift in the more than 50 years since Microsoft’s founding. The widespread use of AI is making code cheaper and faster to produce, but he said that’s also creating demand for new kinds of roles and work.

“Some things like coding require less time of software developers,” he said. “At the same time, there’s new parts that are growing, whether it’s the product management or software design, or perhaps most importantly, working directly with customers.”

Update: A filing by Microsoft on Monday under the Washington state Worker Adjustment and Retraining Notification Act listed 605 positions being eliminated in Washington state.

The roles span software engineering, product management, sales strategy, data science, business program management, marketing, and game design, among others — ranging from mid-level individual contributors to senior managers, consistent with cuts that reach across both the company’s technical ranks and its sales and consulting operations.

In 2007, Microsoft’s Xbox 360 consoles started dying — overheating until three lights on the front blinked red, a defect gamers came to call the “red ring of death.” Microsoft’s response was to extend the warranty on every machine and take a charge of more than $1 billion to fix the problem, making it one of the costliest product failures in the company’s history.

Microsoft could afford it financially, but the bigger factor was strategy. Xbox was a bet on the living room, and for a company minting money on Windows and Office at the time, losing a billion or so was a justifiable cost of staying in the game.

Nearly two decades later, that patience has run out.

“Going forward, this cannot continue,” the new Xbox CEO Asha Sharma wrote in a memo to employees last month, offering a blunt assessment of a business that has spent more than $20 billion over five years, only to see its core revenue fall by nearly half a billion dollars, running at a thin 3% profit margin, by Microsoft’s own internal measures.

With thousands of layoffs expected to be announced across Microsoft as soon as next week, the Xbox division is likely to be among the hardest hit.

The cuts reach across the company — including sales and consulting — part of a restructuring that has become routine around the close of Microsoft’s fiscal year. But for Xbox, they’re an early step in a broader effort to reset the business, rein in costs, and position the division for healthier profits.

Microsoft CEO Satya Nadella has been blunt about it: the company has spent years subsidizing Xbox rather than profiting from it, and that era is over. The videos and livestreams of people playing Xbox games that fill YouTube generate more money than Microsoft makes from the games themselves, he noted in an appearance on the Hard Fork podcast.

“No one can accuse Microsoft of not having invested for the last 25 years,” Nadella said. “And now we have to turn this into a sustainable business.”

Long-term strategic bet

Turning it around means breaking a pattern that runs through Xbox’s history.

Xbox launched in 2001 and lost money for most of its first decade. Microsoft absorbed the losses and stayed in — going up against Sony’s PlayStation and Nintendo — because it saw a strategic prize in owning a piece of the living room, and later mobile. Online gaming also gave the company early experience running services at scale, which fed its cloud ambitions.

Over time, the goal shifted from selling hardware to selling subscriptions.

Xbox Live, launched in 2002, turned online play into recurring revenue. Game Pass, which arrived in 2017, let players pay a monthly fee — the top tier is about $23 — for a library of games, including Microsoft’s own new releases the day they come out. The idea was to get people paying for Xbox everywhere: consoles, PCs, phones and the cloud.

And when growth stalled, Microsoft doubled down. It paid $7.5 billion in 2021 for Bethesda, the studio behind Fallout and The Elder Scrolls, then $69 billion in 2023 for Activision Blizzard (whose games include Call of Duty, World of Warcraft, Diablo and the mobile hit Candy Crush) the largest acquisition in Microsoft’s history.

A series of economic headwinds

In recent years, almost everything about the economics of gaming has turned against Xbox at the same time.

Hardware loses money, and AI is making it worse. Microsoft sells consoles at or below cost, banking on games and subscriptions to make up the difference. But AI data centers are consuming so much memory and storage that chip prices have spiked. That has forced Microsoft to raise Xbox console prices, most recently a $100-to-$150 hike this summer that it blamed directly on component costs.

Xbox lost the console war. By most estimates, Sony’s PlayStation 5 has outsold the Xbox Series X and S more than two to one. A smaller base means fewer game sales and subscriptions to offset the upfront hardware losses. That has left Xbox a distant second for the entire generation.

Revenue is shrinking. Even setting aside the games it gained from Activision, Xbox’s annual revenue has fallen nearly $500 million over five years — while the money going into the business keeps climbing. It has been investing more to earn less.

Microsoft’s most recent quarterly filing shows gaming revenue of $16.8 billion for the nine months through March, down about $1.1 billion, or 6%, from a year earlier.

Game Pass cuts into sales. Handing subscribers a new game the day it launches undercuts the roughly $70 they would have paid to buy it. The service delivers steady subscription income, but thinner economics on the games themselves.

Activision didn’t fix the margins. Even with one of gaming’s most profitable businesses folded in, Xbox earns only about 3 cents of profit on every dollar — well under the 17 to 22 cents typical in the industry. If the biggest acquisition in company history can’t move the margin, little will.

Every spare billion is flowing to AI. Microsoft is pouring more than $100 billion a year into the data centers and chips behind its AI push, trying to capitalize on the boom. Against a risk and payoff that big, a gaming business that barely breaks even feels like yesterday’s strategic bet.

What’s next for Xbox

The cuts have already started. In recent weeks, Microsoft has signaled plans to close or sell some studios, including Ninja Theory, maker of the acclaimed “Hellblade” series.

Shedding staff, studios and marketing will lift Xbox’s profit margins in the near term. What it won’t do is fix the underlying problem: a business can trim its way to a better number only so much before it has to generate more revenue.

Sharma’s plan, so far, is to concentrate on Xbox’s biggest franchises, funding blockbusters like Halo and Fallout while pulling back elsewhere. It’s leaning on Game Pass and releasing most of its games on PCs and rival consoles from Sony and Nintendo, reaching players well beyond Xbox’s shrinking base, even as it holds back a few new exclusives like Gears of War to give owners a reason to stay.

Microsoft is also rethinking the console itself. In her memo, Sharma described a “hardware component crisis” that has left the company unable to make as many consoles as players want, and called for “a new business model and partnerships” for its hardware.

How far the reset ultimately goes is an open question. The Information reported that Microsoft has weighed making Xbox a standalone subsidiary, a joint venture, or a spin-off, though nothing is imminent.

Whatever happens next, it’s clear that times have changed. In 2007, as the red ring of death crisis emerged, Peter Moore, who ran the Xbox business at the time, and his boss Robbie Bach went to then-CEO Steve Ballmer to ask for the money to repair and replace the failing consoles.

Ballmer didn’t flinch. “What’s it going to cost?” he asked, as Moore later recalled.

Told it was $1.15 billion, Ballmer said, simply: “Do it.”

Moore credits that decision with saving Xbox. There would have been no Xbox One, he said, without Ballmer’s willingness to spend more than a billion dollars to protect the brand.

Nearly two decades later, Microsoft is done writing that kind of check.