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In November 2018, the company won a $480 million military contract with the U.S. government to bring augmented reality (AR) headset technology into the weapon repertoires of American soldiers. On November 14, 2014, Microsoft overtook ExxonMobil to become the second most-valuable company by market capitalization, behind only Apple Inc. As of January 2014, Microsoft’s market capitalization stood at $314B, making it the 8th-largest company in the world by market capitalization. Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to government bonds. The company is run by a board of directors made up of mostly company outsiders, as is customary for publicly traded companies.
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According to the complaint and media reports, Microsoft’s cloud services may have been used to store or process surveillance-related data. The probe scrutinized Microsoft’s bundling of cloud services with products like Office and security tools, as well as its growing AI presence through its partnership with OpenAI. 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 365 is a subscription service that offers a suite of productivity tools and cloud-based services from Microsoft.
- Microsoft initially moved onto the grounds of the campus on February 26, 1986, weeks before the company went public on March 13.
- Additional offices are located in Bellevue and Issaquah, Washington (90,000 employees worldwide).
- On July 19, 2024, a global IT outage impacted Microsoft services, affecting businesses, airlines, and financial institutions worldwide.
- 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.
- 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.
- To cope with the potential for an increase in demand for products and services, Microsoft opened a number of “holiday stores” across the U.S. to complement the increasing number of “bricks-and-mortar” Microsoft Stores that opened in 2012.
In 1990, the Federal Trade Commission examined Microsoft for possible collusion due to the partnership with IBM, marking the beginning of more than a decade of legal clashes with the government. Microsoft released its version of OS/2 to original equipment manufacturers (OEMs) on April 2, 1987. 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.
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 has also been criticized for the use of permatemp employees (employees employed for years as “temporary”, and therefore without medical benefits), the use of forced retention tactics, which means that employees would be sued if they tried to leave.
The company was the official jersey sponsor of Finland’s national basketball team at EuroBasket 2015, a major sponsor of the Toyota Gazoo Racing WRT (2017–2020) and a sponsor of the Renault F1 Team (2016–2020). On August 23, 2012, Microsoft unveiled a new corporate logo at the opening of its 23rd Microsoft store in Boston, indicating the company’s shift of focus from the classic style to the tile-centric modern interface, which it uses/will use on the Windows Phone platform, Xbox 360, Windows 8 and the upcoming Office Suites. The company’s retail locations are part of a greater strategy to help build a connection with its consumers. As per company executives, Microsoft had been on the lookout for a flagship location since 2009. On October 26, 2015, the company opened its retail location on Fifth Avenue in New York City.
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- Microsoft released its version of OS/2 to original equipment manufacturers (OEMs) on April 2, 1987.
- Childhood friends Bill Gates and Paul Allen sought to make a business using their skills in computer programming.
- In June 2016, Microsoft announced a project named Microsoft Azure Information Protection.
- Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to government bonds.
- In January 2018, Microsoft patched Windows 10 to account for CPU problems related to Intel’s Meltdown security breach.
- The company’s retail locations are part of a greater strategy to help build a connection with its consumers.
In September 2024, BlackRock and Microsoft announced a $30 billion fund, the Global AI Infrastructure Investment Partnership, to invest in AI infrastructure such as data centers and energy projects. 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.
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Microsoft also subsidizes regional public transport, provided by Sound Transit and King County Metro, as an incentive. It created one of the world’s largest private bus systems, the “Connector”, to transport people from outside the company; for on-campus transportation, the “Shuttle Connect” uses a large fleet of hybrid cars to save fuel. As of January 2011,update it has no products that are completely free from PVC and BFRs.needs update Microsoft’s timeline for phasing out brominated flame retardant (BFRs) and phthalates in all products was 2012 but its commitment to phasing out PVC is not clear. In 2013, Microsoft agreed to buy power generated by a Texas wind project to power one of its data centers.
On August 20, 20 Microsoft employees and their allies were arrested after refusing to disperse from a protest on Microsoft’s Redmond, Washington campus. After the disruptions at these events, Microsoft contacted the FBI in search of assistance in surveilling its pro-Palestinian employees and their allies. 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. The company has a history of antitrust battles in the U.S. and Europe, with over €2 billion in EU fines previously imposed for similar abuses. Internal Revenue Service was alleging that the company owed the U.S. $28.9 billion in past taxes, plus penalties related to mis-allocation of corporate profits over a decade.
2011: Microsoft Azure, Windows Vista, Windows 7, and Microsoft Stores
Gates retired from his role as Chief Software Architect on June 27, 2008, a decision announced in June 2006, while retaining other positions related to the company in addition to being an advisor for the company on key projects. Increasingly present in the hardware business following Xbox, Microsoft 2006 released the Zune series of digital media players, a successor of its previous software platform Portable Media Center. 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.
On January 18, 2022, Microsoft announced the acquisition of American video game developer and holding company Activision Blizzard in an all-cash deal worth $68.7 billion. In October 2021, Microsoft announced that it began rolling out end-to-end encryption (E2EE) support for Microsoft Teams calls in order to secure business communication while using video conferencing software. In the same month, Microsoft acquired Australia-based video editing software company Clipchamp. In September 2021, it was announced that the company had acquired Takelessons, an online platform that connects students and tutors in numerous subjects. The announcement came with confusion after Microsoft announced Windows 10 would be the last version of the operating system.