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In June 2024, Microsoft announced that it was building a “hyperscale data centre” in South East Leeds. Meanwhile, that month, the company announced a subscription offering of artificial intelligence for small businesses via Copilot Pro. In March 2024, Inflection AI’s cofounders Mustafa Suleyman and Karen Simonyan announced their departure from the company in order to start Microsoft AI, with Microsoft acqui-hiring nearly the entirety of its 70-person workforce. However, the plan was short-lived, as Altman was subsequently reinstated as OpenAI’s CEO and Brockman rejoined the company amid pressure from OpenAI’s employees and investors on its board. The service includes Copilot, a GPT-4 based large language model tool to query and visualize data, write code, initiate simulations, and educate researchers.
With a few exceptions of new companies, like Netscape, Microsoft was the only major and established company that acted fast enough to be a part of the World Wide Web practically from the start. Microsoft moved its headquarters from Bellevue to Redmond, Washington, on February 26, 1986, and went public with an initial public offering (IPO) at the NASDAQ exchange on March 13, with the resulting rise in stock making an estimated four billionaires and 12,000 millionaires from Microsoft employees. IBM had copyrighted the IBM PC BIOS, so other companies had to reverse engineer it for non-IBM hardware to run as IBM PC compatibles, but no such restriction applied to the operating systems. Microsoft entered the operating system (OS) business in 1980 with its own version of Unix, licensed from AT&T Corporation a year before, called Xenix, but it was MS-DOS that solidified the company’s dominance. More recently, it has been criticized for its role in providing services to Israel during the Gaza war.

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In 2013, Microsoft agreed to buy power generated by a Texas wind project to power one of its data centers. At the time, data centers consumed up to 2% of all global electricity, and this amount was projected to increase. In August 2018, Microsoft implemented a policy for all companies providing subcontractors to require 12 weeks of paid parental leave to each employee.
It aims to help enterprises protect their data as it moves between servers and devices. In June 2016, Microsoft announced a project named Microsoft Azure Information Protection. On March 1, 2016, Microsoft announced the merger of its PC and Xbox divisions, with Phil Spencer announcing that Universal Windows Platform (UWP) apps would be the focus for Microsoft’s gaming in the future.
In August 2012, the New York City Police Department announced a partnership with Microsoft for the development of the Domain Awareness System which is used for police surveillance in New York City. The Surface was unveiled on June 18, becoming the first computer in the company’s history to have its hardware made by Microsoft. Microsoft unveiled Windows 8, an operating system designed to power both personal computers and tablet computers, in Taipei in June 2011. This nonprofit organization is focused on providing support for a cloud computing initiative called Software-Defined Networking.
The company is expected to report revenue of $80.31 billion for its fiscal second quarter, up 15% year-over-year, with a 27% jump in Intelligent Cloud revenue to $32.39 billion. Amid lingering worries about the company’s AI spending, investors will likely be eager to hear what executives have to say about capital expenditures, along with projections for the “Intelligent Cloud” segment, which includes Azure. The shares are down about 11% from when Microsoft last reported results in October, when the company topped estimates but said it would significantly boost its investments in AI infrastructure.

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  • Microsoft initially moved onto the grounds of the campus on February 26, 1986, weeks before the company went public on March 13.
  • As a result, in 2010 Microsoft revamped its aging flagship mobile operating system, Windows Mobile, replacing it with the new Windows Phone OS that was released in October that year.
  • The shares are down about 11% from when Microsoft last reported results in October, when the company topped estimates but said it would significantly boost its investments in AI infrastructure.
  • In April 2024, it was announced that Microsoft would be opening a state-of-the-art artificial intelligence ‘hub’ around Paddington in London, England.
  • At the time, data centers consumed up to 2% of all global electricity, and this amount was projected to increase.
  • Microsoft unveiled Windows 8, an operating system designed to power both personal computers and tablet computers, in Taipei in June 2011.

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People who use its products and services often end up becoming dependent on them, a process known as vendor lock-in. In 2011, Greenpeace released a report rating the top ten big brands in cloud computing on the sources of electricity for their data centers. In December 2013, the company made a statement to further emphasize that it takes its customers’ privacy and data protection very seriously, saying that “government snooping potentially now constitutes an ‘advanced persistent threat,’ alongside sophisticated malware and cyber attacks”. Microsoft provides information about reported bugs in its software to intelligence agencies of the United States government, prior to the public release of the fix. In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company’s entire workforce.
The event started in the middle of U.S. business hours, leading people to address the snafu on social media as schools, government institutions and companies dealt with the outage. Concerns were raised about Microsoft’s licensing practices potentially locking customers into its services and its AI investments possibly sidestepping regulatory oversight. This inquiry is part of broader efforts by the U.S. government to curb the power of major tech companies, especially under FTC chair Lina Khan. Subsequently, two employees interrupted AI executive Mustafa Suleyman at a speaking event on April 4, 2025, in protest at the company’s support of Israel.
In April 2021, Microsoft announced it would buy Nuance Communications for approximately $16 billion. On November 10, 2020, Microsoft released the Xbox Series X and Xbox Series S video game consoles. December also saw the company discontinue the Microsoft Edge Legacy browser project in favor of the “New Edge” browser project, featuring a Chromium based backend.
In June 2024, Microsoft announced it would be laying off 1,000 employees from the company’s mixed reality and Azure cloud computing divisions. Its best-known software products are the Windows line of operating systems and the Microsoft Office and Microsoft 365 suite of productivity applications, which most notably include the Word word processor, Excel spreadsheet editor, and the PowerPoint presentation program. Often described as a Big Tech company, Microsoft is the largest software company by revenue, one of the most valuable public companies,a and one of the most valuable brands globally. The employees, part of the group No Azure for Apartheid, sought to address the company’s involvement in the Israeli government’s use of its technology. Microsoft was the first company to participate in the PRISM surveillance program, according to leaked NSA documents obtained by The Guardian and The Washington Post in June 2013, and acknowledged by government officials following the leak.

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  • It launched an alliance with Nokia in 2011 and Microsoft worked closely with the company to co-develop Windows Phone, but remained partners with long-time Windows Mobile OEM HTC.
  • As such, it needs subsidiaries present in whatever national markets it chooses to harvest.
  • The company is often referred to as a “Velvet Sweatshop”, a term which originated in a 1989 Seattle Times article, and later became used to describe the company by some of Microsoft’s own employees.
  • In December 2018, Microsoft announced Project Mu, an open source release of the Unified Extensible Firmware Interface (UEFI) core used in Microsoft Surface and Hyper-V products.
  • Additional offices are located in Bellevue and Issaquah, Washington (90,000 employees worldwide).

In May 2025, Microsoft issued an unsigned statement confirming that these services had been made available to Israel, while denying that these tools were employed during the massacre of the people of Gaza. In October 2024, Microsoft fired two employees, software engineers Ibtihal Aboussad and Vaniya Agrawal, who organized an unauthorized vigil at its Redmond headquarters to honor Palestinians killed in the Gaza war. The European Commission issued a statement of objections, alleging Microsoft’s practice since 2019 gave Teams an unfair market advantage and limited interoperability with competing software.
In June 2024, Microsoft faced a potential EU fine after regulators accused it of abusing market power by bundling its Teams video-conferencing app with its Office 365 and Microsoft 365 software. This is due to the company being tax resident in Bermuda as mentioned in the accounts for ‘Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software worldwide. The company is often referred to as a “Velvet Sweatshop”, a term which originated in a 1989 Seattle Times article, and later became used to describe the company by some of Microsoft’s own employees. Historically, Microsoft has also been accused https://www.mrsloty.uk/ of overworking employees, in many cases, leading to burnout within just a few years of joining the company.
On March 13, 2020, Gates announced that he is leaving the board of directors of Microsoft and Berkshire Hathaway to focus more on his philanthropic efforts. Microsoft is one of only two U.S.-based companies that have a prime credit rating of AAA. Microsoft is ranked No. 14 in the 2022 Fortune 500 rankings of the largest United States corporations by total revenue; and it was the world’s largest software maker by revenue in 2022 according to Forbes Global 2000. On July 2, 2025, Microsoft announced it would cut nearly 4% of its workforce, around 9,000 jobs, to control costs amid heavy AI infrastructure spending, while also restructuring management and streamlining operations.

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In 2020, ProPublica reported that the company had diverted more than $39 billion in U.S. profits to Puerto Rico using a mechanism structured to make it seem as if the company was unprofitable on paper. As reported by several news outlets, an Irish subsidiary of Microsoft based in the Republic of Ireland declared £220 bn in profits but paid no corporation tax for the year 2020. This characterization is derived from the perception that Microsoft provides nearly everything for its employees in a convenient place, but in turn overworks them to a point where it would be bad for their (possibly long-term) health.

It launched an alliance with Nokia in 2011 and Microsoft worked closely with the company to co-develop Windows Phone, but remained partners with long-time Windows Mobile OEM HTC. Microsoft implemented a new strategy for the software industry, providing a consistent user experience across all smartphones using the Windows Phone OS. As the smartphone industry boomed in the late 2000s, Microsoft had struggled to keep up with its rivals in providing a modern smartphone operating system, falling behind Apple and Google-sponsored Android in the United States. The European Union imposed another fine of €899 million ($1.4 billion) for Microsoft’s lack of compliance with the March 2004 judgment on February 27, 2008, saying that the company charged rivals unreasonable prices for key information about its workgroup and backoffice servers. Relatively strong sales of both products helped to produce a record profit in 2007.

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