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'We're so used to relying on technology.' Hospitals, airlines, agency operations around New England hampered by software outage.
Blue screen of death on display (David Ryan/Getty Images)

When in doubt, blame Europe: Microsoft pins fault for CrowdStrike fiasco on the EU

J'accuse!

If you were unfortunate enough to spend last weekend in an airport, your travel plans were probably wrecked by a widespread “blue screen of death” mishap that shut down 8.5 million Windows-powered devices, causing US airlines to cancel more than 5,000 flights on Friday and Saturday. The cause of the computer outage was a faulty software update pushed by cybersecurity provider Crowdstrike to Microsoft devices, and Microsoft blamed the system vulnerability that caused this software issue on a 2009 agreement with the EU. From The Telegraph:

Microsoft has blamed EU rules for enabling a faulty security update to cause the world’s biggest IT outage. The software giant said a 2009 agreement with the European Commission meant it was unable to make security changes that would have blocked the CrowdStrike update that triggered widespread travel and healthcare chaos on Friday.

CrowdStrike’s Falcon system, designed to prevent cyber attacks, has privileged access to a key part of a computer known as the kernel. This meant that a faulty update last week resulted in millions of Windows computers and servers being unable to load at all, leading to flight cancellations, contactless payments not working and GP surgeries being unable to make appointments.

Microsoft, which offers its own alternative to CrowdStrike known as Windows Defender, agreed in 2009 to allow multiple security providers to install software at the kernel level amid a European competition investigation.

In contrast, Apple blocked access to the kernel on its Mac computers in 2020, which it said would improve security and reliability. A Microsoft spokesman told the Wall Street Journal that it was unable to make a similar change because of the EU agreement.

For context, the “kernel” is a computer program at the core of its operating system, and buggy software updates that interact with an operating system’s kernel can, as we saw with Crowdstrike, wreak havoc on devices using that OS. Apple runs a closed operating system, locking third-party software providers out of its kernel, which safeguards its devices from incidents like this.

I wrote last week about the EU’s obsession with obscene fines for US big tech companies, so it’s fitting that Microsoft is now blaming European regulators for its 8.5 million device failure. Ben Thompson provided excellent background to Microsoft’s explanation:

Two of the companies seizing this opportunity in the 2000s were Symantec and McAfee; both reacted with outrage in 2005 and 2006 when Microsoft, in the run-up to the release of Windows Vista, introduced PatchGuard. PatchGuard was aptly named: it guarded the kernel from being patched by 3rd-parties, with the goal of increasing security…

Symantec, meanwhile, went straight to E.U. regulators, making the case that Microsoft, already in trouble over its inclusion of Internet Explorer in the 90s, and Windows Media Player in the early 2000s, was unfairly limiting competition for security offerings. The E.U. agreed and Microsoft soon backed down.

Basically, Microsoft wanted to lock third-party security software providers out of its kernel, two of said software providers cried “anti-competitive!” EU regulators agreed, and Microsoft dropped its efforts to block kernel access. Eighteen years later, a security software provider with kernel access pushed an update that shutdown millions of computers, which wouldn’t have happened if that software provider didn’t have kernel access. The EU, for what it's worth, denied responsibility for the computer failure.

Considering that 72% of global desktop computers run on Microsoft operating systems, it will be interesting to see if the tech giant can leverage the Crowdstrike bug to reverse the EU’s open-OS stance on Windows.

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Two years ago, a lower court had struck down the compensation deal, calling it “unfathomable,” and Musk has been fighting for it since then.

Of course, Musk was recently awarded an even bigger pay package that could potentially award him $1 trillion over time. Tesla shares were recently up 0.5% in after-hours trading.

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OpenAI is reportedly in talks to raise as much as $100 billion, with a valuation of....$500 billion...$750 billion $830 billion?

This is getting ridiculous. This week we have read multiple reports that OpenAI is in early discussions with potential investors about a significant fundraising round of up to $100 billion, to help cover its cloud computing costs.

  • On Tuesday, The Information reported a major $10 billion investment from Amazon in OpenAI, with a valuation higher than $500 billion

  • On Wednesday, The Information reported that the $100 billion round would give OpenAI a valuation of $750 billion

  • Today, the Wall Street Journal is reporting that the $100 billion round would give OpenAI a valuation of as much as $830 billion

The spread from $500 billion to $830 billion is pretty wild, and we are wondering what it might be by next week.

  • On Tuesday, The Information reported a major $10 billion investment from Amazon in OpenAI, with a valuation higher than $500 billion

  • On Wednesday, The Information reported that the $100 billion round would give OpenAI a valuation of $750 billion

  • Today, the Wall Street Journal is reporting that the $100 billion round would give OpenAI a valuation of as much as $830 billion

The spread from $500 billion to $830 billion is pretty wild, and we are wondering what it might be by next week.

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Report: OpenAI in early talks for new fundraising round with $750 billion valuation

Just yesterday, we were reading about how Amazon was in talks to invest as much as $10 billion in OpenAI, with an eye-popping valuation of more than $500 billion. But those numbers might already be old.

A new report by The Information says that OpenAI is in early talks to raise as much as $100 billion, with a $750 billion valuation.

The company is reportedly estimating its fast-growing revenue will hit $100 billion by 2028, but it also expects to burn $115 billion in cash through 2029.

The company is reportedly estimating its fast-growing revenue will hit $100 billion by 2028, but it also expects to burn $115 billion in cash through 2029.

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