Microsoft's Notepad gets AI streaming and Markdown upgrades as Paint adds AI coloring book generator

Microsoft has released another update to its Notepad application, version 11.2512.10.0, bringing more AI enhancements and formatting options to the once-simple text editor. The update introduces a new "What's New" onboarding screen that appears on first launch, complete with a megaphone icon in the toolbar for reopening it later.

The new screen is part of Microsoft's ongoing effort to guide users through Notepad's evolving feature set. According to the company, it "provides a quick overview of what's possible in Notepad and serves as a helpful starting point for both new and returning users." This follows the pattern of previous updates that have transformed Notepad from a bare-bones text editor into a more capable tool, though not without controversy.

AI Streaming and Markdown Enhancements

The most significant technical addition is expanded support for AI streaming features. Microsoft explains that "whether generated locally or in the cloud, results for Write, Rewrite, and Summarize will start to appear quicker without the need to wait for the full response, providing a preview sooner that you can interact with." This streaming approach reduces perceived latency by showing partial results as they're generated, similar to how modern AI assistants stream responses in real-time.

This feature requires signing in with a Microsoft account, which has been a point of contention among users who prefer Notepad's traditional offline functionality. The streaming capability builds on previous AI additions that arrived in late 2024, when Microsoft first integrated Copilot-powered writing assistance into Notepad.

Markdown support also receives additional formatting options. The update adds strikethrough formatting and nested lists to the existing Markdown capabilities, which were first introduced in June 2025. Tables arrived in November 2025, completing a gradual transformation of Notepad into a lightweight Markdown editor. For developers and technical writers who frequently work with Markdown, these additions make Notepad more viable for documentation work without requiring specialized editors.

Paint's AI Coloring Book Feature

Microsoft isn't stopping with Notepad. The classic Paint application receives two new features, one of which is AI-powered. The "Coloring book" feature uses AI to transform user-provided text into coloring book pages. According to Microsoft, this requires a Copilot+ PC and a Microsoft account sign-in.

The technical implementation likely involves a text-to-image generation model that creates simplified line drawings suitable for coloring. While Microsoft's announcement doesn't detail the underlying model, it probably uses the same Copilot infrastructure that powers other Windows AI features. The feature is positioned as a creative tool, though its practical utility for most users remains questionable.

The second Paint update is more practical: a tolerance slider for the fill tool. This gives users finer control over color matching when filling areas, addressing a long-standing limitation in the application's flood fill algorithm. The tolerance setting determines how similar a color must be to the selected pixel to be included in the fill operation.

The Broader Pattern of Feature Creep

These updates continue a trend that began with Windows 11's introduction of AI features across the operating system. Microsoft has been systematically adding AI capabilities to core applications, from the Start menu to File Explorer to Notepad and Paint. The strategy reflects Microsoft's broader "Copilot all the things" approach, where AI assistance becomes a default expectation rather than an optional feature.

For homelab builders and system administrators, this trend has practical implications. Each AI feature adds potential overhead, both in terms of system resources and privacy considerations. The streaming AI features in Notepad, for example, require network connectivity and Microsoft account authentication, fundamentally changing the application's offline nature.

The "What's New" screen itself represents another layer of complexity. While helpful for discovering features, it adds to the startup time and requires additional code to maintain. For users who prefer minimalist tools, these additions can feel like unnecessary bloat.

Performance and Compatibility Considerations

From a technical standpoint, the AI streaming features likely leverage the Neural Processing Units (NPUs) found in newer processors, particularly Intel's Core Ultra series and AMD's Ryzen AI chips. This hardware acceleration enables local processing of some AI tasks, though cloud processing remains an option for more complex operations.

The Copilot+ PC requirement for the Coloring book feature suggests it may use specialized AI hardware or software stacks not available on standard PCs. This creates a tiered experience where users with newer hardware get access to features that remain unavailable on older systems.

For homelab enthusiasts running Windows on older or repurposed hardware, these developments may be less relevant. Many prefer to use Notepad for its simplicity and speed, not its AI capabilities. The ability to disable AI features entirely remains a question—Microsoft hasn't provided clear documentation on turning off these enhancements without affecting other functionality.

Community Reaction and Practical Impact

The Register's inquiry about user feedback demanding these enhancements went unanswered by Microsoft, suggesting these features may be driven more by corporate AI strategy than user requests. This aligns with broader industry patterns where AI features are added to products regardless of immediate user demand, as companies race to demonstrate AI integration.

For developers and technical users, the expanded Markdown support in Notepad could reduce reliance on more complex editors for simple documentation tasks. The strikethrough formatting and nested lists provide enough functionality for basic Markdown editing without the overhead of full-featured editors like Visual Studio Code or Sublime Text.

However, the AI features may complicate Notepad's role as a reliable, fast-starting text editor. The streaming AI responses require network connectivity and Microsoft account authentication, which may not be available or desirable in all environments. System administrators managing locked-down systems may need to disable these features through Group Policy or registry edits.

Future Implications

Microsoft's continued investment in AI features for core Windows applications suggests this trend will persist. Future updates may bring more sophisticated AI assistance to Notepad, potentially including code completion, syntax highlighting, or even automated error detection. Paint could see additional AI-powered image manipulation tools.

For homelab builders, this represents both opportunity and challenge. The AI features could potentially be repurposed for local automation tasks, though Microsoft's closed ecosystem makes this difficult. The streaming architecture, if documented, might inspire similar implementations in open-source projects.

The broader question is whether these enhancements represent genuine improvements or feature creep. For users who simply need to edit configuration files or take quick notes, the AI additions may be unnecessary overhead. For those working with documentation or creative content, the new features could provide tangible value.

Ultimately, Microsoft's strategy reflects the industry's pivot toward AI-as-default. The question for users is whether to embrace these changes or seek alternatives that maintain the simplicity of classic tools. For homelab enthusiasts who value control and minimalism, the evolution of Notepad and Paint may push them toward more customizable, open-source alternatives.

The updates are available now through Windows Update for users running compatible versions of Windows 11. The "What's New" screen will appear on first launch after updating, and can be dismissed or reopened via the megaphone icon in Notepad's toolbar.