TCI Hedge Fund Sells $8 B Microsoft Stake Over AI Competition Concerns

Hedge fund TCI, a long‑time Microsoft shareholder, has divested nearly its entire holding in the software giant, disposing of shares valued at about $8 billion. The fund cited uncertainty about how rapid advances in artificial intelligence could affect Microsoft’s competitive position, especially in its Office suite and Azure cloud platform. TCI reduced its Microsoft exposure from roughly 10 % of its portfolio to less than 1 % after holding the stake for about a decade.

Microsoft reported strong quarterly results, with revenue up 18 % to $82.9 billion and net profit rising 23 % to $31.8 billion. Cloud services grew 40 %, and the company projects continued robust growth for Azure. The fund’s move comes despite these positive earnings, highlighting market concerns about AI‑driven disruption in enterprise software.