Microsoft

Microsoft’s 2025 annual meeting saw shareholders reject Proposal 9—a BDS‑linked resolution targeting Israel—by over 70% of votes. JLens and the ADL praised the outcome, noting the proposal’s political motive contrary to fiduciary duty. More than 50 shareholders co‑filed the measure, with Norway’s GPFG voting for it, while proxy advisors were split (Glass Lewis against, ISS for). The defeat highlights growing resistance to overtly political ESG proposals and signals firms will scrutinize activist demands for governance and reputational risk.

Microsoft denied a report that it lowered growth targets for its AI software sales, stating that neither quotas nor overall AI‑product sales goals have changed. The story alleged that most Azure Foundry sales reps missed a 50% growth target, prompting a scaled‑back quota, but Microsoft said the outlet conflated growth and quotas. Adoption of Azure Foundry faces integration hurdles, pricing concerns, and stiff competition from Google, Amazon and others. Analysts will watch conversion of pilots to contracts, deal sizes, and data‑integration improvements to gauge Microsoft’s AI‑driven growth.

words.Anthropic, the AI startup behind Claude, is preparing for a potential IPO—the largest slated for next year—by hiring law firm Wilson Sonsini and consulting banks. The company may raise a private round valued over $300 billion, with $15 billion pledged by Microsoft and Nvidia. It has hired former Airbnb IPO lead Krishna Rao and announced a $50 billion data‑center expansion. Rival OpenAI is also weighing a public listing, positioning both firms to test market appetite for fast‑growing, loss‑making AI ventures.

A surge in AI is driving tech companies to rapidly expand data center infrastructure, meeting local resistance over economic impact and environmental concerns. Microsoft faced opposition in Caledonia, Wisconsin, leading to withdrawal of a rezoning application. Mount Pleasant, WI, however, welcomes Microsoft after a failed Foxconn project. Community engagement and addressing local worries are crucial, as seen in examples like Tucson, Arizona, and Indiana where data center proposals faltered. Despite challenges, hyperscalers continue aggressive expansion plans, seeking state incentives. Caledonia highlights the need for sustainable development and benefits.

Microsoft has introduced Agent 365, a tool for IT specialists to manage and govern the proliferation of AI agents within corporate environments. Agent 365 provides visibility into all AI agents, regardless of origin, allowing administrators to approve new agents, track usage, quantify time savings, and mitigate security risks. This centralized platform supports agents from various vendors, including Adobe, ServiceNow and those built on Azure AI Foundry. EY is an early adopter. The tool addresses the growing need for structured AI governance due to increasing AI agent adoption for task automation.

The S&P 500 faces headwinds amid AI sector valuation concerns, leading to its worst streak since August. Jim Cramer advises strategic investment during market dips, exemplified by the CNBC Investing Club’s increased position in Home Depot despite an earnings miss, while trimming Disney shares, anticipating housing demand and interest rate reductions. Microsoft’s $30B Azure commitment to Anthropic, alongside Nvidia’s $10B investment, sparks debate over AI spending sustainability. Honeywell faces a Bank of America downgrade countered by Cramer’s optimism for its aerospace spinoff. Rapid-fire stocks include Cloudflare, Kroger, Medtronic, Axalta, and MP Materials.

Microsoft, Anthropic, and NVIDIA have formed a compute alliance to reshape AI infrastructure investment and model accessibility. The collaboration aims to diversify the AI ecosystem and optimize hardware performance, with Microsoft integrating Anthropic’s models across its products, and Anthropic committing to $30 billion in Azure compute. NVIDIA’s Grace Blackwell architecture promises significant speed improvements, crucial for enterprise AI adoption. The partnership also addresses vendor lock-in by making Claude accessible across major cloud providers, urging a shift towards sustainable and collaborative AI development. Enterprises should optimize model selection for specific workloads to maximize ROI within this expanded infrastructure.

Microsoft is diversifying its AI strategy by investing $5 billion in Anthropic, alongside Nvidia’s $10 billion stake. Anthropic commits $30 billion to Microsoft’s Azure compute and secures contracts for up to one gigawatt of compute capacity. Nvidia and Anthropic will collaborate on AI model and hardware optimization. This move follows Microsoft’s substantial investment in OpenAI, signaling a potential shift to broader AI partnerships. Nvidia’s CEO Jensen Huang praised Anthropic’s work.

Microsoft is implementing a “Trusted Technology Review” portal for employees to raise ethical concerns about its technology, following internal unrest and scrutiny over geopolitical involvements. This initiative addresses controversies like curtailed cloud services to an Israeli defense unit and security risks concerning US Department of Defense reliance on Microsoft engineers in China. President Brad Smith emphasized non-retaliation and anonymous reporting. These changes reflect a growing tech industry trend toward greater accountability and ethical oversight. Microsoft aims to balance innovation, growth, and ethical responsibilities.

Cloud computing firm Lambda has secured a multi-billion dollar deal with Microsoft to provide AI infrastructure, driven by surging demand for AI services. The agreement involves deploying tens of thousands of Nvidia GPUs. Lambda CEO Stephen Balaban cited widespread adoption of AI services like ChatGPT and Claude as key drivers. This partnership strengthens the existing relationship between Lambda and Microsoft, bolstering Microsoft’s AI cloud offerings. Lambda will utilize NVIDIA GB300 NVL72 systems. Lambda also plans to launch a new AI factory in Kansas City by 2026, reflecting long-term growth in AI infrastructure.