Microsoft is testing a new Internet search engine, Kumo.com, that it hopes will help it boost its rankings in the search market.
Meanwhile, the doors to negotiations with Yahoo is once again open, although the two companies now say they will conduct their negotiations in private.
Recently-appointed Yahoo CEO Carol Bartz told an investor conference that any negotiations would be held in private and refused to comment any further.
Meanwhile, Microsoft's new search engine is said to be based on semantic technology that can understand sentences and word relationships.
Speculation is rife that Microsoft will replace its Live Search technology with the Kumo.com engine.