Concerns over AI disruption are now impacting even the largest technology giants. Microsoft's stock fell 1.4% in early trading on Monday following reports that major hedge fund TCI had significantly reduced its stake in the tech behemoth, citing concerns that artificial intelligence could reshape parts of Microsoft's core operations. According to reports, the hedge fund TCI, led by billionaire investor Sir Christopher Hohn, has sold nearly all of its approximately $8 billion stake in Microsoft over the past few months. It was reported that Microsoft constituted about 10% of the fund's portfolio at the end of 2025, but by the end of March, this share had dropped to less than 1%. The notable aspect of this move is the rationale behind it. Reports indicate that TCI believes the rapid advancement of AI could exert long-term pressure on Microsoft's dominance in productivity software, particularly its Office business, as new AI-driven workflows and competing platforms begin to change how people work. The fund also reportedly highlighted potential risks to Microsoft's cloud business, Azure, despite its current strength in enterprise AI infrastructure. Simultaneously, TCI appears to be shifting its capital more aggressively toward Alphabet. Reports suggest the fund has increased its stake in Google's parent company to 5% of its portfolio, making it the largest technology holding.
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