Azure Update - 16th January 2026

Key Concepts

• Quantum Safe Cryptography: Preparing for future decryption of currently captured data by quantum computers.
• AKS & Ubuntu 24.04: General Availability of Ubuntu 24.04 for Azure Kubernetes Service (AKS).
• Cosmos DB & Fabric Mirroring: Enabling mirroring of Cosmos DB data to Microsoft Fabric even with private network restrictions.
• GPT-52 Codeex: New GPT coding model with a large context window and multimodal capabilities.
• Optimized Small Language Models (SLMs): Experimental models from Microsoft Research for optimization problems like scheduling and supply chain design.
• Mixed Integer Linear Programming (MILP): A type of optimization problem addressed by the SLMs.
• Network ACL Bypass: A feature allowing Fabric mirroring with existing private network configurations for Cosmos DB.
• Token (LLM context): A unit of text used by Large Language Models, roughly equivalent to 75% of a word.

Azure Update - January 16, 2026

This update covers recent developments in Azure services, focusing on compute, database, and AI capabilities. The presenter also announced a role change to CTO of America's Markets and Industries, clarifying this will not affect the YouTube channel.

Role Update & Upcoming Events

The presenter’s role at Microsoft has changed to CTO of America's Markets and Industries, but the YouTube channel will remain unaffected. They will be attending AI tours in New York and Boston in the coming weeks, with regular updates resuming in February.

New Video Content: Quantum Safe Cryptography

New videos released this week address the topic of Quantum Safe cryptography. These videos explain the cryptographic implications of quantum computing and provide guidance on proactive measures. Specifically, the content highlights the risk of data being captured now and decrypted later when quantum computers become powerful enough. A shorter, “too long didn’t read” version is also available.

Compute Updates: AKS & Ubuntu 24.04

Ubuntu 24.04 is now Generally Available (GA) for Azure Kubernetes Service (AKS) for use with Kubernetes 1.32 and above. It will become the default version on Kubernetes 1.35. This release leverages containerd 2.0 and provides the benefits of the latest Ubuntu version.

Database Updates: Cosmos DB & Microsoft Fabric Integration

A significant update enables mirroring of Cosmos DB data into Microsoft Fabric, even when Cosmos DB is secured with Virtual Network (VNet) subnets or Private Endpoints. Previously, these network restrictions prevented mirroring. This is achieved through a “network ACL bypass” feature. Users utilizing exclusively Private Endpoints may need to temporarily enable public access during the mirroring setup, which can then be disabled once the connection is established. This removes a key blocker for organizations leveraging private network integration with Cosmos DB.

AI & Coding Updates: GPT-52 Codeex

The latest GPT coding model, GPT-52 Codeex, is now available in Microsoft Foundry and GitHub Copilot. This model boasts a context window of up to 400,000 tokens – approximately 100,000 lines of code. It supports over 50 programming languages and is multimodal, accepting code, natural language, and images (like UI mockups or designs) as input. The large context window is particularly beneficial for iterative development and large-scale projects like migrations and refactoring.

Specialized AI: Optimized Small Language Models (SLMs)

Microsoft Research has released an experimental Optimized Small Language Model (SLM) designed for optimization problems. This model is specifically tailored for tasks such as workforce scheduling, supply chain design, network deployment, and financial portfolio optimization. These problems fall under the category of Mixed Integer Linear Programming (MILP). The SLM classifies the problem, receives hints, generates a solution, and can even perform self-correction. This specialized approach is expected to deliver superior performance compared to generalized large language models for these specific use cases. The SLM is currently available for testing on Microsoft Foundry.

Quote: "It's designed for what's known as a mixed integer linear programming type of problem." – Regarding the Optimized Small Language Models.

Technical Definitions

• Containerd: A core container runtime used by Kubernetes.
• Virtual Network (VNet): A logically isolated network in Azure.
• Private Endpoint: A network interface that uses a private IP address from your VNet in Azure.
• Network ACL (Access Control List): A set of rules that control network traffic.
• Tokens: The basic units of text used by Large Language Models (LLMs) for processing.

Synthesis

This Azure update highlights Microsoft’s continued focus on enhancing security, integration, and AI capabilities within its cloud platform. The updates to Cosmos DB and AKS demonstrate a commitment to addressing customer needs around network security and Kubernetes management. The introduction of GPT-52 Codeex and the Optimized SLMs signify a push towards more powerful and specialized AI tools for developers and problem-solvers. The emphasis on preparing for quantum computing underscores a proactive approach to future-proofing data security.