Microsoft shares slip after hedge fund TCI sharply reduces $8 billion stake, citing AI risks to productivity software dominance

Hedge fund TCI sold off nearly all of its roughly $8 billion Microsoft stake over the past few months, reducing exposure from about 10% of the fund's portfolio at the end of 2025 to less than 1% by the end of March.

TCI cited concerns that advances in AI could create long-term pressure on Microsoft's dominance in productivity software, particularly Office, as AI-driven workflows and competing platforms change how people work. The fund also flagged potential risks around Azure, Microsoft's cloud business.

TCI simultaneously increased its Google (Alphabet) stake to 5% of its portfolio, making it the fund's largest technology holding.