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Microsoft has paid a record $17 million in bug bounties during its latest fiscal year (July 2024–June 2025), underscoring the escalating value of ethical hacking in securing its sprawling digital ecosystem. The payouts rewarded 344 researchers across 59 countries for 1,469 validated vulnerability reports—directly preventing over 1,000 potential exploits in products like Azure, Windows, Edge, Xbox, and Microsoft 365. The highest single reward hit $200,000, reflecting the critical nature of certain discoveries.

"By incentivizing independent researchers to identify vulnerabilities in high-impact areas, including the rapidly evolving field of AI, we're able to stay ahead of emerging threats," Microsoft stated. "These researchers play a critical role in reinforcing the trust that millions of users place in Microsoft technologies every day."

The figure represents a notable increase from the $16.6 million paid to 343 researchers the prior year. This growth aligns with strategic expansions across Microsoft’s bounty programs, particularly in AI and cloud security:

  • Copilot AI: Now covers traditional online service flaws alongside AI-specific risks
  • Dynamics 365 & Power Platform: Added dedicated AI vulnerability categories
  • Windows: Introduced rewards for remote denial-of-service and sandbox escape exploits
  • Identity Services: Expanded scope to include critical APIs and domains
  • Defender Suite: Extended to Microsoft Defender for Identity, Office, and Cloud Apps

Recent months saw further increases, including $40,000 bounties for .NET/ASP.NET Core flaws and elevated rewards for Power Platform and Dynamics 365 AI vulnerabilities. The momentum continues with Microsoft’s upcoming Zero Day Quest hacking contest, offering up to $5 million in prizes—dubbed the "largest hacking event in history."

This record investment highlights a fundamental shift: as AI integrates into core infrastructure, preemptive security collaboration isn’t just valuable—it’s existential. By funding the hacker community’s ingenuity, Microsoft transforms potential adversaries into a global defense network, setting a benchmark for the industry’s arms race against evolving threats.

Source: BleepingComputer