Microsoft Service Outage Persists as Malaysia Probes AI Chip Diversion

By / / Breaking News

This update was written automatically with AI from market data and news wire reports, and published without review by a person.

Key Takeaways

  • Microsoft (MSFT) confirms that initial attempts to stabilize Microsoft 365 services have failed, leading to a prolonged global outage affecting Outlook, Teams, and Copilot.
  • Malaysia’s Trade Ministry has launched an investigation into Speedmatrix, an affiliate of Singapore-based Megaspeed, over allegations of unauthorized re-exports of Nvidia (NVDA) AI chips to restricted markets.
  • Google (GOOGL) has complied with South Korean security mandates by deleting sensitive military coordinates and street view data, narrowly avoiding the revocation of its map export permit.
  • The New Zealand Dollar (NZD) fell below the 0.5550 threshold as currency traders shifted focus toward upcoming US Producer Price Index (PPI) data and a strengthening US Dollar.
  • European Union leaders remain deadlocked over the appointment of a chief negotiator for Ukraine peace talks during a high-stakes summit in Dublin.

Microsoft Recovery Efforts Falter Amid Global Disruption

Microsoft (MSFT) announced on Friday that changes introduced to improve service reliability have failed to produce the expected outcome, leaving thousands of users unable to access Microsoft 365 applications. The company identified a core process on affected servers that became overwhelmed, causing them to stop responding and leading to significant capacity loss.

To address the ongoing imbalances in traffic management, Microsoft (MSFT) is seeking additional capacity measures and identifying alternate workstreams. The outage has disrupted critical services including Exchange Online, Microsoft Teams calendar functions, and Copilot responses, with reports of downtime spanning over 70 countries.

Malaysia Probes Potential AI Chip Re-Exports

The Malaysian Ministry of Investment, Trade and Industry (MITI) clarified it has never authorized Megaspeed International or its local affiliate, Speedmatrix, amid a probe into the movement of high-performance AI chips. Authorities are working with the Royal Malaysian Customs Department to determine if servers and chips brought into the country were illegally re-exported to China or other restricted regions.

While importing AI chips into Malaysia does not currently require a permit, MITI emphasized that strict export controls have been in place since July 2025 under the Strategic Trade Act 2010. The ministry is collaborating with Singapore and US authorities to explore additional control measures, warning that companies must factor in foreign export controls even when not directly enforced by Malaysia.

Google Complies with South Korean Security Mandates

Google (GOOGL) has completed the deletion of South Korean territory coordinates from Google Maps and Google Earth, a move confirmed by the South Korean government on Friday. The tech giant also removed Street View coverage inside and around military and security sites to satisfy conditions for its high-resolution map export permit.

The South Korean government warned that it maintains the authority to suspend or revoke the permit if any serious breaches of these security conditions occur in the future. This resolution ends a long-standing dispute regarding the display of sensitive national security data on international mapping platforms.

Forex and Geopolitical Developments

The New Zealand Dollar weakened past 0.5550 against the Greenback as markets braced for US PPI data, which could influence the Federal Reserve's next interest rate decision. The Kiwi remains under pressure due to a rising domestic unemployment rate and a widening interest rate gap between the RBNZ and the Fed.

In Dublin, EU leaders are divided over who should represent the bloc in potential peace negotiations between Ukraine and Russia. While some nations support EU foreign policy chief Kaja Kallas, others fear her firm stance against the Kremlin could hinder diplomatic progress, leaving the continent without a unified voice ahead of Friday's summit.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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