Billionaire Chris Hohn’s hedge fund TCI has significantly reduced its stake in Microsoft. According to the investor, the rapid development of artificial intelligence is causing uncertainty about the software giant’s future position.
In particular, TCI believes that the dominant role of Office and, to a lesser extent, the Azure cloud platform could come under pressure.
A letter to investors, reviewed by the Financial Times, shows that TCI reduced its position in Microsoft between late 2025 and late March of this year from approximately 10 percent of the total portfolio to about 1 percent. In doing so, the fund sold virtually its entire stake, which was estimated to be worth about $8 billion.
TCI argues that AI could radically change the way users work with productivity software. The fund fears that new AI-based platforms could displace existing software environments. The investor also sees risks emerging around Azure due to rapid changes in the market for AI infrastructure and cloud platforms.
The move is notable because TCI has benefited from Microsoft’s strong stock price for years. The hedge fund had held a significant stake in the company almost continuously since 2017 and saw the stock value rise sharply during that period. Moreover, Microsoft has firmly positioned itself in recent years as one of the key AI players thanks to its collaboration with OpenAI.
Microsoft Stock Price Under Pressure
Nevertheless, doubts are growing among investors as to whether the massive investments in AI will pay off quickly enough. Microsoft’s stock has been under pressure since the beginning of this year. Investors are increasingly questioning whether current AI expenditures will ultimately yield sufficient returns.
At the same time, TCI further expanded its stake in Alphabet. According to the investor letter, that stake grew from 3 to 5 percent of the portfolio. This makes Google’s parent company the hedge fund’s largest technology investment.
TCI has been one of the world’s most successful hedge funds for years. According to international financial media, the fund generated nearly $19 billion in profits for investors last year. Chris Hohn is known for his concentrated investment strategy, in which he invests in a relatively small number of companies that he believes have strong market positions.