The hedge fund reduced its holding from 10% to 1%, trimming an $8 billion position, while Microsoft shares fell more than 1% on Friday.
CEO Christopher Hohn cited uncertainty over Microsoft's future competitive position as AI threatens software such as Office, and flagged risks around the Azure cloud business.
Although Azure revenue accelerated in the first quarter of 2026, investors remain concerned that OpenAI accounts for more than 40% of its Azure revenue backlog; Microsoft shares are down about 12% this year.
With its stock falling and AI costs soaring, is Microsoft's dominance quietly coming to an end?
Microsoft's AI future is tied to a shaky partner and massive spending. Can it build a lasting moat?