Key Takeaways
- • Bill Ackman's Pershing Square hedge fund has built a new stake in Microsoft, initiating the position in February 2026 following a 15% year-to-date decline in the company's stock price, which Ackman characterizes as representing "highly compelling valuation."
- • Ackman's investment thesis centers on Microsoft's dominance in enterprise technology, specifically citing Azure cloud services and the M365 Office productivity suite with its $30-per-month Copilot AI assistant as core value drivers positioned to benefit from rising business AI adoption.
- • The position will be held across multiple Ackman vehicles, including Pershing Square Capital Management and the newly launched Pershing Square USA closed-end fund (which debuted on the NYSE in April 2026), signaling conviction in the thesis.
- • Ackman views Microsoft's restructured OpenAI partnership—which strips the company of exclusive resale rights—not as a negative but as a "deliberate pivot toward a more open, multi-model architecture that better serves enterprise customers," countering market concerns about the relationship change.
- • The Microsoft bet aligns with Ackman's stated investment strategy of acquiring stakes in "dominant" technology companies experiencing temporary valuation pressures, despite competitive headwinds from Google and Amazon's AI initiatives and concerns about slower Copilot adoption.
Summary
Bill Ackman's Pershing Square hedge fund disclosed a new stake in Microsoft on May 15, 2026, capitalizing on a significant decline in the software giant's stock price. Ackman announced the position via social media, framing it as part of a deliberate strategy to acquire shares in exceptional businesses trading at attractive valuations. The timing of the announcement comes as Microsoft's stock has fallen approximately 15% year-to-date, with investors expressing concerns over slower cloud revenue growth, elevated capital expenditures, and reduced exclusive rights within its partnership with OpenAI.
Pershing Square began accumulating the Microsoft position in February 2026, following the company's quarterly earnings report that disappointed markets with signs of moderating Azure cloud growth alongside a substantial increase in spending commitments. Ackman argues that market pessimism is unwarranted, positioning Microsoft's two core enterprise technology franchises—Azure and the M365 productivity suite featuring a $30-monthly Copilot subscription—as generating outsized value in an era of accelerating enterprise AI adoption. The investor emphasized that these businesses are "stronger and more resilient than investors think," suggesting the current market price presents a genuine opportunity for long-term investors.
A central element of Ackman's thesis addresses concerns about Microsoft's restructured OpenAI relationship, which now permits OpenAI to license its technology more broadly rather than exclusively through Microsoft's cloud infrastructure. Rather than viewing this as a concession or strategic retreat, Ackman reframes the partnership restructuring as a deliberate shift toward a "more open, multi-model architecture that better serves enterprise customers." He also endorsed Microsoft's $190 billion capital expenditure plan for 2026, arguing that the spending is essential to drive future revenue growth despite near-term earnings pressure. The Microsoft stake is being held through both Pershing Square Capital Management's primary fund and Pershing Square USA, the closed-end fund that launched on the NYSE in April 2026, indicating substantive position sizing across Ackman's investment vehicles.
Pershing Square began accumulating the Microsoft position in February 2026, following the company's quarterly earnings report that disappointed markets with signs of moderating Azure cloud growth alongside a substantial increase in spending commitments. Ackman argues that market pessimism is unwarranted, positioning Microsoft's two core enterprise technology franchises—Azure and the M365 productivity suite featuring a $30-monthly Copilot subscription—as generating outsized value in an era of accelerating enterprise AI adoption. The investor emphasized that these businesses are "stronger and more resilient than investors think," suggesting the current market price presents a genuine opportunity for long-term investors.
A central element of Ackman's thesis addresses concerns about Microsoft's restructured OpenAI relationship, which now permits OpenAI to license its technology more broadly rather than exclusively through Microsoft's cloud infrastructure. Rather than viewing this as a concession or strategic retreat, Ackman reframes the partnership restructuring as a deliberate shift toward a "more open, multi-model architecture that better serves enterprise customers." He also endorsed Microsoft's $190 billion capital expenditure plan for 2026, arguing that the spending is essential to drive future revenue growth despite near-term earnings pressure. The Microsoft stake is being held through both Pershing Square Capital Management's primary fund and Pershing Square USA, the closed-end fund that launched on the NYSE in April 2026, indicating substantive position sizing across Ackman's investment vehicles.
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