Microsoft does make interns sign non-compete contracts. I have mine in front of me. It's much tighter in scope, however; I can't work on the same thing as I either worked on or learned confidential information about at MS for 6 months after employment. Not at all as bad as the one in the article, but not the worst.
I distinctly remembered the intern employment contract including a non-compete clause (with a 1 year duration) limiting work on any competing product or project (rather than entire employers).. but I didn't have a copy of the contract to check so I withdrew my comment.
