Microsoft is testing a new project file format in Paint that saves your layers, letting you reopen compositions exactly as you left them—a shift that makes the free Windows 11 app behave more like Photoshop. The .paint files, now available to Insiders in the Dev and Canary channels, arrive alongside per-tool opacity sliders and a faster Snipping Tool markup toolbar. Meanwhile, Notepad is gaining AI-powered writing tools that can run entirely on a Copilot+ PC’s local hardware.

What’s Actually Changed in Paint and Notepad

The update, first reported by The Verge, delivers three practical additions to Paint and a new AI boost for Notepad. All features are currently being tested with Windows Insiders, so exact release dates and final details could shift.

.paint Files: Saving Layers for Later Editing

Until now, Paint’s layer support was useful only within a single session. Saving as a PNG or JPEG flattened everything. The new .paint file format changes that. When you save a project, Paint preserves each layer, its ordering, and its transparency settings, much like a Photoshop .PSD. You can close the file and return later to pick up editing right where you stopped.

Microsoft hasn’t yet published technical details about the .paint container—whether it’s a zip archive of layer images and metadata or a proprietary binary. That lack of documentation means interoperability with other editors is unknown. For now, treat it as a Paint-exclusive project format.

Opacity Sliders for Pencil and Brush

Paint’s pencil and brush tools now have a dedicated opacity control. A slider on the left side of the canvas lets you adjust transparency on the fly. This turns brushes from single-opacity stamps into tools capable of soft shading, glazing, and layered strokes without messing with the entire layer’s opacity. It’s a small addition that significantly expands what you can draw directly in Paint.

Snipping Tool Gets a Markup Overhaul

The Snipping Tool is receiving a quick markup toolbar designed to speed up screenshot annotation. The bar includes a highlighter, a pen, an eraser, and a one-click recrop option. No more digging through menus to refine a captured image or highlight a key area.

Notepad Taps Local AI for Writing Help

Notepad, the text editor that has barely changed for decades, is getting AI-powered write, summarize, and rewrite features. On Copilot+ PCs, these can run using on-device models without sending text to the cloud. Microsoft says the local AI is free and doesn’t require a Microsoft 365 subscription. Users can still switch to cloud models for potentially higher quality, but the default on capable hardware will be local processing.

What These Changes Mean for You

For Casual Creators and Students

A .paint file removes the headache of juggling multiple image exports. You can start a collage, a quick poster, or a layered meme, save it as a .paint, and finish later without losing your layers. The opacity slider makes digital drawing in Paint feel less rigid, and the Snipping Tool’s markup tools are now fast enough to replace third-party annotation apps for many users.

For Power Users and Professionals

Paint isn’t Photoshop. It lacks adjustment layers, filters, blend modes, and smart objects. But for quick edits that need layers—blending two images, adding text on a transparent background, creating a simple diagram—Paint is becoming a genuinely capable lightweight alternative. The bigger question is file portability. If you routinely pass work between apps, a proprietary .paint format could be a dead end. Until Microsoft documents the format or adds export options for PSD, you’ll still need traditional layered formats for archival and collaboration.

For Privacy-Conscious Users and IT Admins

Notepad’s local AI is a win for privacy. Sensitive text doesn’t leave the machine during summarization or rewriting. However, not every Copilot+ feature is locally processed. Users should verify whether generative tasks like image creation or cloud-enhanced rewrite fall back to remote servers. In enterprise environments, IT admins should audit Copilot and AI processing policies, especially where data residency or compliance matters.

How Paint Got Here: A Two-Year Makeover

Paint’s transformation started in 2023 with a dark mode and revamped interface. Layers and transparency support arrived next, turning the app from a nostalgic relic into a basic image editor. AI-powered features followed—generative fill, background removal, and sticker generation, all tied to Copilot. An earlier update also added a brush size slider and a dedicated layers panel.

The .paint file format is the logical next step. Without it, layers were useful only for a single editing session. Now Paint can function as a project-based creative tool, much like Krita, Paint.NET, or Photoshop Elements. Microsoft’s strategy is clear: upgrade the built-in Windows tools so that casual creators don’t feel forced to download third-party software or subscribe to cloud services. At the same time, tying advanced AI to Copilot+ hardware gives users a reason to buy new devices and stay in the Microsoft ecosystem.

What to Do Now: Testing, Backups, and Workflow Tips

If you’re eager to try the new features, join the Windows Insider program and switch to the Dev or Canary channel. Keep in mind these are preview builds; you might encounter crashes or changes before the public release.

Back up flattened copies. Whenever you save a .paint file, also export a PNG or JPEG version. This safeguards your work if the project file becomes corrupted or if you later need to open it in another app.

For professionals, treat .paint as a convenience, not an archive format. Continue using PSD, XCF, or PDN for work that demands interoperability. Only rely on .paint for projects that will stay inside Paint.

For IT admins, review your organization’s Copilot settings. Some AI features in Notepad might require a Microsoft account sign-in, and cloud-based models could entail data leaving the device. Decide whether to enable local-only AI or block certain features entirely through group policy or management tools.

Looking Ahead: Will Paint Become a True Photoshop Alternative?

Paint’s renaissance is impressive, but two factors will determine its future reach: file format openness and the breadth of on-device AI. If Microsoft publishes the .paint spec, third-party tools could add support, and Paint might become a lightweight standard for layered images on Windows. A path to export layered PSDs would also lower the barrier for cross-tool workflows.

AI integration is another wildcard. As Notepad and Paint gain more local intelligence, the line between simple utilities and professional apps will blur. We may eventually see photo restoration, smart upscaling, or even local generative fill that runs without an internet connection. For now, Paint’s new project files and opacity sliders make it a more useful everyday tool, while Notepad’s local AI hints at a smarter, more private future for Windows’ built-in apps.