Microsoft Corporation, headquartered in Redmond, Washington, is a leading American multinational technology company. Renowned for its software products like Windows operating systems, Microsoft 365 suite, Azure cloud platform, and Edge browser, Microsoft also produces hardware like Xbox consoles and Surface computers. A Fortune 500 company, Microsoft was the world's largest software maker by revenue in 2022. It is considered one of the Big Five American information technology companies, alongside Alphabet, Amazon, Apple, and Meta.
The January 1975 issue of Popular Electronics featured the Altair 8800 microcomputer, sparking Paul Allen's idea to create a BASIC interpreter for the device, a pivotal moment in Microsoft's pre-founding.
After developing a BASIC interpreter for the Altair 8800, Gates and Allen successfully demonstrated it to MITS in Albuquerque, New Mexico, in March 1975, securing a distribution deal and paving the way for Microsoft's founding.
On April 4, 1975, Bill Gates and Paul Allen established Microsoft, initially named "Micro-Soft," to develop and sell BASIC interpreters for the Altair 8800.
Microsoft expanded its reach internationally in August 1977 by establishing its first international office, ASCII Microsoft, in Japan through an agreement with ASCII Magazine.
In January 1979, Microsoft moved its headquarters to Bellevue, Washington, marking a significant expansion for the growing company.
A pivotal deal in November 1980 saw IBM contracting Microsoft to provide a version of the CP/M OS for the IBM Personal Computer, leading to the development and rise of MS-DOS, which cemented Microsoft's dominance in the PC market.
Steve Ballmer joined Microsoft in 1980, marking the beginning of his tenure with the company.
August 1981 marked the release of the IBM PC, which came equipped with Microsoft's MS-DOS, rebranded as IBM PC DOS. This release solidified Microsoft's position in the burgeoning PC market.
Microsoft began operating in Mountain View, California, in 1981.
Microsoft diversified its offerings in 1983, venturing into new markets with the release of the Microsoft Mouse and establishing Microsoft Press, its publishing division.
The year 1983 marked Microsoft's first venture into hardware with the release of the Microsoft Mouse.
On November 20, 1985, Microsoft introduced Windows as a graphical extension for MS-DOS, marking its first foray into the world of graphical user interfaces.
Microsoft established Microsoft Canada in 1985 as part of its global expansion strategy.
Microsoft relocated its headquarters to Redmond, Washington, on February 26, 1986, where it remains to this day.
The concept behind Microsoft's "Pac-Man Logo" drew inspiration from the InFocus Corporation logo, which had been adopted a year prior in 1986.
Microsoft introduced the "Pac-Man Logo" on February 26, 1987, designed by Scott Baker. This logo, set in Helvetica italic, featured a slash between the "o" and "s" to emphasize the "soft" in the name and evoke speed and motion.
Microsoft released its version of OS/2, jointly developed with IBM, to Original Equipment Manufacturers (OEMs) on April 2, 1987, as part of their ongoing collaboration.
In 1988, Microsoft started using "per processor licenses," which would later be scrutinized as an anti-competitive practice.
The term "Velvet Sweatshop", first appearing in a 1989 Seattle Times article, was used to characterize companies like Microsoft that provided numerous perks to employees but demanded long working hours.
The Federal Trade Commission initiated an examination into Microsoft in 1990, investigating potential collusion with IBM, marking the beginning of a long period of legal scrutiny for the company.
In 1990, Microsoft unveiled the Microsoft Office suite, bundling popular applications like Microsoft Word and Microsoft Excel, which would go on to dominate the office productivity software market.
Microsoft launched Windows NT on July 21, 1993, a significant step in operating system development. It featured a new modular kernel and the 32-bit Win32 API.
On July 15, 1994, the Department of Justice was investigating Microsoft's use of "per processor licenses," which they alleged were used to stifle competition.
On July 27, 1994, the Department of Justice's Antitrust Division filed a statement alleging that Microsoft used anti-competitive "per processor licenses" to maintain a monopoly in the PC operating system market.
In 1994, Microsoft entered into an agreement with the Justice Department, the details of which were not provided in the context.
On May 26, 1995, Bill Gates sent an internal memo, the "Internet Tidal Wave," urging Microsoft to embrace the internet, which led to a significant shift in the company's strategy.
On August 24, 1995, Microsoft released Windows 95 with a massive marketing campaign. The new operating system featured a redesigned user interface, pre-emptive multitasking, and 32-bit compatibility.
In 1996, Microsoft ventured into new territories, partnering with NBC to launch MSNBC, a 24/7 cable news channel, and introducing Windows CE 1.0 for low-memory devices.
In October 1997, the Justice Department filed a motion against Microsoft, alleging that the company violated a 1994 agreement by bundling Internet Explorer with Windows.
In October 1999, Microsoft and other companies came together to form the Trusted Computing Platform Alliance. While its stated aim was to enhance security, the alliance drew criticism for potentially enabling restrictions on software use.
On January 13, 2000, Steve Ballmer, a long-time friend of Bill Gates and Microsoft employee since 1980, took over as CEO. Bill Gates transitioned to the role of Chief Software Architect.
On April 3, 2000, a significant legal decision was reached in the case of United States v. Microsoft Corp., with Microsoft being declared an "abusive monopoly."
In early 2000, Microsoft's stock price reached a peak, reflecting the company's strong performance during the dot-com boom.
On October 25, 2001, Microsoft released Windows XP, a unified operating system that merged the mainstream and NT lines under the NT codebase.
In 2001, then-CEO of Microsoft, Steve Ballmer, made a controversial statement by referring to Linux as "cancer." This comment reflected the competitive tension between Microsoft and the open-source community at that time.
In 2002, Microsoft rolled out a new logo and slogan in the United States. The slogan, replacing the previous "Where do you want to go today?", was featured in a television campaign.
Microsoft released Windows Server 2003, a server operating system, in 2003. The company later commissioned TCO studies comparing this version to Linux.
In March 2004, the European Union concluded its antitrust case against Microsoft, finding the company had abused its dominant position. The ruling led to a €497 million ($613 million) fine and required Microsoft to offer versions of Windows XP without Windows Media Player, resulting in Windows XP Home Edition N and Windows XP Professional N.
In March 2004, the European Union initiated antitrust legal proceedings against Microsoft, alleging abuse of its dominant market position with the Windows OS.
In 2004, Microsoft initiated independent studies comparing the Total Cost of Ownership (TCO) of Windows Server 2003 and Linux. The studies, which sparked debate, concluded that Windows offered easier administration, potentially leading to lower costs for businesses.
In 2004, Microsoft reached a settlement with the U.S. Department of Justice, resolving the antitrust case stemming from the "abusive monopoly" ruling.
In April 2005, Microsoft installed over 2,000 solar panels atop its buildings at its Silicon Valley campus. These solar panels generated approximately 15% of the total energy required by the facilities, showcasing the company's commitment to renewable energy sources.
In November 2005, Microsoft launched its second foray into the video game console market with the release of the Xbox 360. The console was offered in two versions: a basic version and a deluxe version with a higher price point.
From 2005 to 2010, Microsoft consistently earned a perfect score of 100% on the Human Rights Campaign's Corporate Equality Index. This recognition highlighted the company's progressive policies and inclusive environment for LGBT employees.
On March 3, 2006, Microsoft launched On10.net, a community platform featuring daily videocasts and other services for developers and users.
Bill Gates made public his decision to step down as Chief Software Architect in June 2006, giving the company a two-year window for the transition.
Microsoft's Online Services Division began experiencing continuous losses in 2006, marking a period of financial challenges for the company.
In 2006, Microsoft furthered its push into the hardware market with the Zune series, digital media players intended to succeed its Portable Media Center software platform.
Microsoft released Windows Vista and Office 2007 in January 2007. Vista prioritized features, security, and a revamped user interface named Aero. Office 2007 introduced the "Ribbon" user interface, a significant change from previous versions.
According to leaked information, Microsoft joined the PRISM program in 2007. This revelation sparked controversy and raised concerns about user privacy.
By 2007, Microsoft had established a strong foothold in the hardware market, boasting the top-selling wired keyboard, mouse, and desktop webcam in the United States.
In 2007, Microsoft acquired the advertising company aQuantive for $6.2 billion. This acquisition would later result in a significant financial loss for Microsoft.
The European Union levied another fine of €899 million ($1.4 billion) against Microsoft on February 27, 2008. The EU contended that Microsoft had not complied with the March 2004 judgment and was charging unfair prices for information related to its server software.
On June 27, 2008, Bill Gates transitioned away from his role as Chief Software Architect, a decision announced two years prior. Despite stepping down, Gates maintained other roles within the company and continued to serve as an advisor on key projects.
On October 27, 2008, Microsoft made its foray into the cloud computing market with the launch of Azure Services Platform, designed for Windows.
Microsoft began using the slogan "Your potential. Our passion." in 2008.
In 2008, Microsoft's main campus in the United States was awarded a silver certification by the Leadership in Energy and Environmental Design (LEED) program. This certification recognized Microsoft's efforts in implementing sustainable building practices and reducing its environmental footprint.
Microsoft unveiled its plans to establish a chain of Microsoft-branded retail stores on February 12, 2009, signaling a move into direct retail.
On October 22, 2009, Microsoft celebrated two significant events: the grand opening of its first retail store in Scottsdale, Arizona, and the official public release of Windows 7. Designed to refine the user experience of Windows Vista, Windows 7 focused on improving ease of use and performance rather than a complete overhaul.
In 2009, the London Stock Exchange announced its intention to replace its Microsoft-developed .NET Framework trading platform with a Linux-based system in 2010. This decision followed issues with downtime and reliability.
In response to the Great Recession, Microsoft laid off 5,800 employees in 2009. This event highlights the company's adjustments to economic downturns.
Microsoft executives revealed that the company had been actively seeking a prime flagship location since 2009.
In February 2010, Microsoft expressed opposition to a proposed expansion of public transportation and high-occupancy vehicle (HOV) lanes on State Route 520 and its accompanying floating bridge connecting Redmond to Seattle. The company cited concerns about potential construction delays as the reason for its stance.
Microsoft first introduced Kinect in November 2010. Kinect was a motion-sensing input device designed initially as a video game controller.
During the private MGX (Microsoft Global Exchange) conference in 2010, Microsoft presented its latest tagline, "Be What's Next." The company also used the slogan/tagline "Making it all make sense."
In 2010, Microsoft revamped its mobile operating system, replacing Windows Mobile with the new Windows Phone OS. Launched in October, it featured the "Metro" design language, emphasizing minimalism and a consistent user experience across devices.
Microsoft's Online Services Division faced significant financial difficulties in 2010, reporting a loss of $2.5 billion.
The London Stock Exchange transitioned to a Linux-based system in 2010, replacing its previous Microsoft solution. This move followed concerns over the reliability of the Microsoft platform.
In the 16th edition of Greenpeace's Guide to Greener Electronics, Microsoft secured the 17th position out of 18 electronics manufacturers evaluated. The guide assessed companies based on their policies on toxic chemicals, recycling practices, and efforts to combat climate change.
In February 2011, despite receiving a AAA credit rating, Microsoft released a corporate bond of $2.25 billion. This came at a time when the company faced financial challenges, including a slowdown in PC sales and significant losses in its Online Services Division.
On March 23, 2011, Microsoft became a founding member of the Open Networking Foundation along with companies like Google, Yahoo!, and Deutsche Telekom. The non-profit organization aimed to support Software-Defined Networking, a cloud computing initiative to accelerate innovation in telecommunications and other networking areas.
In June 2011, Microsoft made two significant announcements in Taipei. They unveiled their new operating system, Windows 8, designed for PCs and tablets. Additionally, they introduced the Surface, marking the first time Microsoft would produce its own computer hardware.
Microsoft was ranked first on the list of the World's Best Multinational Workplaces by the Great Place to Work Institute in 2011. This recognition highlighted Microsoft's positive work environment and employee satisfaction.
Microsoft released the consumer preview of its new operating system, Windows 8, on February 29, 2012. Designed for both PCs and tablets, this followed the developer preview released in September 2011.
In July 2012, Microsoft decided to sell its 50% stake in MSNBC, a joint venture it had with NBC since 1996. This marked a strategic move away from the joint news venture.
Despite achieving record revenues, Microsoft announced its first-ever quarterly loss on July 20, 2012. The loss of $492 million was attributed to a writedown related to the acquisition of aQuantive.
The New York City Police Department announced its partnership with Microsoft in August 2012 to develop the Domain Awareness System. This technology would be implemented for police surveillance within New York City.
August 23, 2012, marked the end of an era for Microsoft's "Pac-Man Logo," which was retired after 25 years, 5 months, and 28 days, making it the company's longest-used logo.
On September 4, 2012, Microsoft released Windows Server 2012.
October 2012 marked a period of major product launches for Microsoft. On October 26th, they launched Windows 8 and the Microsoft Surface. Following closely on October 29th, they released Windows Phone 8.
Microsoft hired Mark Penn in 2012 to lead its advertising strategy, resulting in the controversial "Scroogled" campaign, which targeted Google with negative advertisements. The campaign criticized Google's practices related to search results, Gmail privacy, and shopping results.
Microsoft launched its Patent Tracker on March 29, 2013.
Media reports in May 2013 revealed Microsoft's involvement in PRISM, the National Security Agency's (NSA) controversial mass electronic surveillance program.
Microsoft revealed the enhanced capabilities of its Kinect device in May 2013. These upgrades included an ultra-wide 1080p camera, infrared sensor for dark environments, improved processing power, new software, and the ability to detect subtle movements and heart rates.
In June 2013, Microsoft issued an official statement denying its involvement in the PRISM surveillance program, despite earlier reports and leaks suggesting its participation.
Leaked NSA documents in June 2013 suggested Microsoft's participation in the PRISM program, which granted the government access to non-U.S. citizen data. However, Microsoft denied any involvement.
In response to the maturing personal computer market, Microsoft announced a major reorganization in July 2013. The company consolidated its structure into four new business divisions: Operating Systems, Apps, Cloud, and Devices. This restructuring aimed to streamline operations and enhance focus without any workforce reductions.
On July 19, 2013, Microsoft experienced its most significant single-day stock sell-off since 2000. This followed a concerning fourth-quarter report that highlighted poor sales figures for Windows 8 and the Surface tablet, resulting in a loss exceeding US$32 billion.
On September 3, 2013, Microsoft finalized the acquisition of Nokia's mobile unit for $7 billion. This strategic move signaled Microsoft's ambition to gain a stronger foothold in the mobile phone market. Notably, this acquisition took place under the leadership of newly appointed CFO Amy Hood.
In 2013, Microsoft made a commitment to purchase power from a Texas wind project to supply one of its data centers with renewable energy. This decision followed a 2011 report by Greenpeace that raised concerns about the environmental impact of data centers and their increasing electricity consumption.
As of January 2014, Microsoft's market capitalization reached $314 billion, ranking it as the 8th largest company globally.
February 4, 2014, marked a significant leadership transition for Microsoft. Steve Ballmer stepped down as CEO, and Satya Nadella, former head of the Cloud and Enterprise division, took the helm. Concurrently, John W. Thompson replaced Bill Gates as chairman, who remained as a technology advisor. This marked only the second time Microsoft had appointed a new chairman in its history.
On April 25, 2014, Microsoft completed the acquisition of Nokia Devices and Services for $7.2 billion. This acquisition led to the creation of a new subsidiary, Microsoft Mobile Oy.
On June 5, 2014, Microsoft announced plans to lay off 18,000 employees, representing approximately 14% of its workforce at the time. This marked the beginning of the largest layoff in the company's history.
On July 1, 2014, as part of a three-part program to enhance its encryption and transparency efforts, Microsoft opened its first Transparency Center. This center allows governments to review source code for key products, ensuring software integrity and the absence of backdoors.
Microsoft began its planned layoffs in July 2014, impacting a significant portion of its workforce.
Microsoft acquired the video game development company Mojang, known for its highly popular game Minecraft, on September 15, 2014, for $2.5 billion.
Microsoft conducted a second wave of layoffs in September 2014, further reducing its workforce as part of the previously announced restructuring plan.
By October 2014, Microsoft was nearing the completion of its largest-ever layoff round, having let go of a substantial number of employees.
On November 14, 2014, Microsoft's market capitalization exceeded ExxonMobil's, making it the second most valuable company globally, trailing only Apple Inc.
Microsoft received the EPA's Green Power Leadership Award in 2014 in recognition of the company's full transition to renewable energy sources, demonstrating its commitment to environmental sustainability.
On January 21, 2015, Microsoft entered the interactive whiteboard market with the release of its Surface Hub.
Microsoft announced an additional 7,800 job cuts in July 2015, continuing its restructuring efforts and impacting various departments.
On July 29, 2015, Microsoft released its latest operating system, Windows 10.
On October 26, 2015, Microsoft inaugurated its flagship retail location on Fifth Avenue in New York City, a five-story edifice spanning 22,270 square feet. This move aligned with the launch of the Surface Book and Surface Pro 4.
Following the New York City opening, Microsoft launched its second flagship retail store on November 12, 2015, situated in Sydney's Pitt Street Mall.
In 2015, Reuters reported that Microsoft held $76.4 billion in earnings abroad, which remained untaxed by the Internal Revenue Service, highlighting the company's global financial practices.
In 2015, civil rights activist Jesse Jackson praised Microsoft for adding two women to its board of directors as part of their diversity initiatives.
Microsoft served as the official jersey sponsor for Finland's national basketball team during EuroBasket 2015.
In 2015, Microsoft established its own parental leave policy, granting employees 12 weeks of paid parental leave. Birth mothers were eligible for an additional 8 weeks of leave.
In 2015, Microsoft established Microsoft Philanthropies, an internal charitable arm focused on bringing technological benefits to underserved communities worldwide.
By January 2016, Microsoft held a 2.7% share of the U.S. smartphone market. This followed a challenging period where the company experienced significant losses in its mobile phone business during the summer of 2015.
Microsoft announced the merger of its PC and Xbox divisions on March 1, 2016. Phil Spencer, head of the Xbox division, revealed that Universal Windows Platform (UWP) apps would become central to Microsoft's gaming strategy.
In May 2016, Microsoft announced the layoff of 1,850 employees. This workforce reduction came with an impairment and restructuring charge of $950 million.
Microsoft announced 1,850 job cuts in May 2016, primarily affecting its Nokia mobile phone division, resulting in a significant impairment and restructuring charge.
In June 2016, Microsoft announced the development of Microsoft Azure Information Protection. This project aimed to provide businesses with enhanced data protection measures, securing data as it moved across servers and devices.
Microsoft released Windows Server 2016 in September 2016.
During the Microsoft Connect(); developer event in November 2016 in New York, Microsoft made a significant announcement by joining the Linux Foundation as a Platinum member. This move was particularly notable given the company's historical stance towards Linux.
In 2016, Microsoft purchased the 32-acre Mountain View campus it had been occupying since 1981 with the intention of renovating and expanding it by 25%.
Microsoft joined as a sponsor of the Renault F1 Team in 2016.
At the BETT 2017 education technology conference in London, Microsoft showcased Intune for Education on January 24, 2017. Intune for Education was a new cloud-based service designed for the education sector, offering application and device management.
Microsoft acquired the Israeli security firm Hexadite on June 8, 2017, for $100 million.
On October 23, 2017, Microsoft dropped its lawsuit against the U.S. government. The lawsuit challenged secrecy orders that prevented Microsoft from disclosing warrants to customers. The decision to drop the lawsuit followed a policy change by the Department of Justice, which revised data request rules to alert internet users about government agencies accessing their information.
Microsoft Teams, launched in 2017, had an initial user base of 2 million daily users. This figure highlights the platform's early adoption rate.
Microsoft announced plans to release a preview of its Intune for Education service in the subsequent weeks. The full launch was scheduled for the spring of 2017, with pricing set at $30 per device or through volume licensing agreements.
Microsoft became a major sponsor of the Toyota Gazoo Racing WRT from 2017.
In January 2018, Microsoft issued a patch for Windows 10 to address CPU vulnerabilities associated with Intel's Meltdown security breach. However, this patch caused problems for Microsoft Azure virtual machines that relied on Intel's CPU architecture. Additionally, on January 12, 2018, Microsoft released PowerShell Core 6.0 for the macOS and Linux operating systems.
In February 2018, Microsoft discontinued notification support for their Windows Phone devices. This move effectively halted firmware updates for the discontinued devices.
March 2018 saw two significant developments at Microsoft. First, the company recalled Windows 10 S and transitioned it into a mode for the Windows operating system, moving away from its initial status as a separate and distinct operating system. Second, Microsoft established guidelines to censor users of Office 365 who used profanity in their private documents.
In April 2018, Microsoft took significant steps towards open-source initiatives. To mark the 20th anniversary of Windows File Manager, the company released its source code under the MIT License. Further demonstrating its commitment to open source, Microsoft announced Azure Sphere, its own derivative of the Linux operating system.
Microsoft partnered with 17 American intelligence agencies in May 2018 to develop cloud computing products. This project, known as "Azure Government," has connections to the Joint Enterprise Defense Infrastructure (JEDI) surveillance program.
On June 4, 2018, Microsoft publicly announced its decision to acquire GitHub for a sum of $7.5 billion.
Microsoft unveiled the Surface Go platform to the public on July 10, 2018.
August 2018 marked the beginning of a collaboration between Toyota Tsusho and Microsoft to develop fish farming tools using Microsoft Azure's Internet of Things (IoT) technologies for water management. This project, partially developed by researchers from Kindai University, utilizes water pump mechanisms powered by artificial intelligence. These pumps count fish on a conveyor belt, analyze the count, and assess water flow efficiency based on the data collected. The software used in this process falls under the Azure Machine Learning and Azure IoT Hub platforms.
In August 2018, Microsoft introduced a policy requiring all companies providing subcontractors to offer 12 weeks of paid parental leave to their employees. This policy expanded upon a previous requirement from 2015, which mandated 15 days of combined paid vacation and sick leave annually.
In August 2018, Microsoft launched two significant projects: Microsoft AccountGuard and Defending Democracy. Additionally, the company announced that Windows 10 would be compatible with the Snapdragon 850 on the ARM architecture.
Microsoft discontinued Skype Classic in September 2018.
Despite owning over 60,000 patents, Microsoft joined the Open Invention Network community on October 10, 2018.
On October 26, 2018, Microsoft finalized its acquisition of GitHub.
In November 2018, Microsoft agreed to provide the United States military with 100,000 Microsoft HoloLens headsets. The goal was to "enhance lethality by improving the ability to detect, decide, and engage before the enemy." Additionally, in the same month, Microsoft introduced Azure Multi-Factor Authentication for Microsoft Azure.
In November 2018, Microsoft secured a $480 million contract with the U.S. government to develop augmented reality (AR) headset technology for the military.
December 2018 was marked by several significant developments at Microsoft. The company announced Project Mu, an open-source release of the Unified Extensible Firmware Interface (UEFI) core utilized in Microsoft Surface and Hyper-V products. This project promotes the concept of Firmware as a Service. Furthermore, Microsoft announced the open-source implementation of Windows Forms and the Windows Presentation Foundation (WPF), signaling a move towards greater transparency in releasing crucial frameworks used in Windows desktop application and software development. However, December also saw the company discontinue the Microsoft Edge project in favor of Chromium backends for their browsers.
On February 20, 2019, Microsoft declared its plan to extend its cybersecurity service, AccountGuard, to 12 new European markets, encompassing Germany, France, and Spain. This expansion aimed to strengthen security measures and safeguard political customers from hacking threats. However, this same month was also marked by protests from hundreds of Microsoft employees against the company's $480 million contract with the United States Army for developing virtual reality headsets. They criticized this deal as war profiteering.
Following practices starting in 2019, Slack, later acquired by Salesforce, filed a complaint that accused Microsoft of giving Teams an unfair advantage by bundling it with Office 365.
In January 2020, Microsoft announced its ambitious goal to become a carbon-negative company by 2030. The company also committed to removing all carbon emissions generated since its founding in 1975.
On March 13, 2020, Bill Gates made a significant announcement, stepping down from his position on the board of directors at Microsoft. This decision marked a major departure for Gates from the company he co-founded, as he shifted his focus towards his philanthropic endeavors through the Bill & Melinda Gates Foundation.
Microsoft announced the acquisition of Affirmed Networks for approximately $1.35 billion on March 26, 2020. Furthermore, due to the ongoing COVID-19 pandemic, Microsoft made the decision to indefinitely shut down all its retail stores as a precautionary health measure.
On July 22, 2020, Microsoft announced its decision to shut down its Mixer streaming service and revealed its plans to transition existing partners to Facebook Gaming.
Reports on July 31, 2020, revealed that Microsoft was engaged in discussions to acquire TikTok. This development followed the Trump administration's order directing ByteDance to relinquish ownership of the application to a US entity.
Following speculation surrounding Microsoft's potential acquisition of TikTok, former President Donald Trump announced on August 3, 2020, that Microsoft could proceed with the purchase. However, he imposed certain conditions: the deal had to be finalized by September 15, 2020, and the United States Department of the Treasury should receive a portion of the proceeds if the acquisition were successful.
On August 5, 2020, Microsoft halted its xCloud game streaming test for iOS devices. According to Microsoft, the future of xCloud on iOS remained uncertain, potentially beyond their control, due to Apple's strict limitations on "remote desktop clients." These restrictions permit applications to connect only to user-owned host devices or gaming consoles.
September 15, 2020, marked the deadline set by the Trump administration for the completion of Microsoft's acquisition of TikTok.
Microsoft announced its intention to acquire the video game company ZeniMax Media, the parent company of Bethesda Softworks, on September 21, 2020, for approximately $7.5 billion. The deal was projected to be finalized in the second half of the 2021 fiscal year.
Microsoft secured an exclusive license to use OpenAI's GPT-3 artificial intelligence language generator on September 22, 2020. The previous iteration, GPT-2, had drawn attention and controversy for being considered "too dangerous to release" due to its wide range of capabilities. These included website design, potential medical diagnoses and prescriptions, question answering, and article writing.
On October 9, 2020, Microsoft announced a permanent shift towards allowing remote work for its employees, reflecting the company's adaptation to changing work patterns.
Microsoft launched the Xbox Series X and Xbox Series S video game consoles on November 10, 2020.
Microsoft's sponsorship of the Renault F1 Team ended in 2020.
Salesforce, the maker of Slack, filed an antitrust complaint against Microsoft in 2020, alleging that integrating Teams with Office 365 stifled competition.
Microsoft's sponsorship of the Toyota Gazoo Racing WRT concluded in 2020.
Microsoft set its baseline for Scope 3 emissions in 2020.
In 2020, news outlets reported that Microsoft's Irish subsidiary declared £220 billion in profits but paid no corporation tax due to its tax residency in Bermuda. This revelation sparked criticism from figures like UK Labour MP Dame Margaret Hodge, who condemned the practice of wealthy corporations avoiding taxes in countries where they conduct business.
In 2020, ProPublica reported that Microsoft allegedly diverted over \$39 billion in U.S. profits to Puerto Rico to minimize taxes, resulting in a near-zero tax rate. The company faced scrutiny and an IRS audit for these practices.
Microsoft announced on Twitter in January 2021 that it would be joining the Climate Neutral Data Centre Pact. This pact reflects a commitment from cloud infrastructure and data center industries to achieve carbon neutrality in Europe by 2030.
The acquisition of ZeniMax Media by Microsoft was finalized on March 9, 2021, officially making ZeniMax Media a part of Microsoft's Xbox Game Studios division. The total value of the deal amounted to $8.1 billion.
In April 2021, Microsoft announced its plan to acquire Nuance Communications for a sum of approximately $16 billion.
On June 24, 2021, Microsoft revealed Windows 11 in a live stream event. This announcement created confusion, as Microsoft had previously declared Windows 10 to be the final version of its operating system.
In September 2021, Microsoft announced two acquisitions. They acquired TakeLessons, an online platform connecting students and tutors across various subjects. This strategic move aimed to expand Microsoft's footprint in the online education market, targeting a broader audience. Additionally, they acquired Clipchamp, an Australian video editing software company.
Windows 11 was released to the public on October 5, 2021.
In October 2021, Microsoft took significant steps in enhancing its business communication and employee experience offerings. The company began rolling out end-to-end encryption (E2EE) for Microsoft Teams calls, bolstering security for video conferencing. Additionally, Microsoft acquired Ally.io, a software service focused on measuring progress against objectives and key results (OKRs), with plans to integrate it into its Viva employee experience platform.
On January 13, 2022, The Wall Street Journal reported that Microsoft's board of directors planned to initiate an independent review of the company's policies and handling of sexual harassment and gender discrimination allegations. The review aimed to examine past allegations, including those against Bill Gates and other executives, and to enhance transparency and accountability within the company.
On January 18, 2022, Microsoft announced its intention to acquire video game giant Activision Blizzard for a staggering $68.7 billion. This move was widely seen as a strategic play within the burgeoning metaverse landscape.
Microsoft completed its acquisition of Nuance Communications in March 2022. During 2021, fueled in part by robust quarterly earnings driven by the COVID-19 pandemic, Microsoft's valuation reached nearly $2 trillion. The heightened demand for cloud computing due to the increase in remote work and online education, along with growth in the company's gaming sales, contributed to this surge in valuation.
In June 2022, following the Russian invasion of Ukraine, Microsoft released a report on cyberattacks traced back to the Russian government and pro-Russian hackers. The report revealed that Russian state-backed hackers had engaged in "strategic espionage" targeting governments, think tanks, businesses, and aid organizations in 42 countries supporting Ukraine.
In December 2022, Microsoft secured a significant 10-year partnership with the London Stock Exchange (LSE). This deal involves Microsoft providing a range of products, including its cloud computing platform, Microsoft Azure, to the LSE. As part of the agreement, Microsoft also acquired a 4% stake in the LSE, further solidifying the partnership.
In January 2023, Microsoft announced a round of layoffs affecting approximately 10,000 employees, citing economic challenges. The announcement came shortly after Microsoft's CEO Satya Nadella hosted an exclusive Sting concert for a select group, including Microsoft executives, in Davos, Switzerland, which drew criticism for its optics during a period of job cuts.
On January 23, 2023, Microsoft announced a significant multi-year, multi-billion dollar investment in OpenAI, the company behind the artificial intelligence chatbot ChatGPT. This investment deepens the existing partnership between the two companies and highlights Microsoft's commitment to advancing artificial intelligence technologies.
In September 2023, Microsoft announced a $200 million investment in carbon credits from Heirloom Carbon, aiming to offset 315,000 metric tons of carbon dioxide over a decade.
On October 13, 2023, Microsoft completed the acquisition of Activision Blizzard, marking a significant milestone in the technology and gaming industries. This acquisition brings a wealth of iconic gaming franchises under Microsoft's umbrella.
In a significant move within the gaming industry, Microsoft acquired Activision Blizzard for a staggering $68.7 billion in October 2023, marking it as Microsoft's largest corporate acquisition.
At a developer conference in November 2023, Microsoft announced the development of two new specialized computing chips: Maia and Cobalt. The Maia chip is specifically designed to handle large language models, while the Cobalt CPU is engineered to power general cloud services on Microsoft's Azure platform.
On November 20, 2023, Satya Nadella announced the return of Sam Altman and Greg Brockman to Microsoft. Both individuals had previously held key roles at OpenAI before rejoining Microsoft to lead a new research team focused on advanced artificial intelligence.
By 2023, negotiations between Microsoft and the European Commission regarding the Salesforce complaint reached an impasse. Microsoft subsequently faced an antitrust investigation for its Teams integration practices.
In 2023, it was revealed that the IRS alleged Microsoft owed \$28.9 billion in back taxes and penalties for allegedly misallocating corporate profits over a decade, stemming from the practices reported in 2020.
By 2023, Microsoft Teams experienced substantial growth, reaching 300 million daily users. This surge in popularity contributed to the scrutiny surrounding its market dominance and bundling practices.
Microsoft conducted layoffs affecting 1,900 employees in its gaming division in January 2024. The layoffs primarily impacted Activision Blizzard, but also affected Xbox and ZeniMax employees.
In a significant milestone, Microsoft achieved the status of the most valued publicly traded company in January 2024. Continuing its AI-focused initiatives, Microsoft also announced Copilot Pro, a subscription service offering artificial intelligence tools tailored for small businesses.
In January 2024, Microsoft revealed a security breach affecting a small number of corporate email accounts, including those of senior leadership and cybersecurity teams. The company attributed the breach to a Russian state-sponsored group and emphasized the importance of multi-factor authentication in preventing such attacks.
In April 2024, Microsoft revealed plans to establish a cutting-edge artificial intelligence hub in the Paddington area of London, England, to be spearheaded by former Deepmind and Inflection employee Jordan Hoffman.
On April 16, 2024, Microsoft made a strategic investment of $1.5 billion in G42, a prominent artificial intelligence company based in the United Arab Emirates. This investment highlights Microsoft's global commitment to advancing AI technology and its partnership with G42.
On April 30, 2024, Microsoft announced a substantial investment of $1.7 billion to develop artificial intelligence and cloud infrastructure in Indonesia. The initiative focuses on establishing data centers and fostering partnerships to accelerate Indonesia's digital transformation across various sectors.
In May 2024, Microsoft revealed its plans to establish a major artificial intelligence hub in southeast Wisconsin, significantly increasing its initial investment to $3.3 billion. The project includes the construction of a data center, aims to create thousands of jobs, and involves a partnership with the University of Wisconsin-Milwaukee for AI training and innovation.
By June 2024, Microsoft had dedicated over $760 million through its Climate Innovation Fund to sustainability initiatives, including carbon removal and renewable energy. However, the company's Scope 3 emissions saw a 31% rise from its 2020 baseline, resulting in a 29% increase in total emissions for 2023.
In June 2024, Microsoft announced layoffs affecting 1,000 employees within its mixed reality and Azure cloud computing divisions. These job cuts reflect ongoing adjustments and strategic shifts within the company.
In June 2024, the European Union considered fining Microsoft for allegedly abusing its market dominance by bundling its Teams video conferencing app with Office 365. Regulators claimed this practice unfairly disadvantaged competitors and restricted interoperability.
Microsoft announced in June 2024 its plan to build a "hyperscale data center" in South East Leeds, demonstrating its commitment to expanding its global data infrastructure.
In July 2024, Microsoft faced criticism and scrutiny for its decision to lay off its diversity, equity, and inclusion (DEI) team. This move sparked concerns and discussions about the company's commitment to diversity and inclusion initiatives.
On July 19, 2024, a major global IT outage significantly impacted Microsoft services, causing widespread disruptions across various sectors, including businesses, airlines, and financial institutions. The outage was attributed to a faulty update from CrowdStrike, a cybersecurity software provider. While CrowdStrike maintained that it was not a cyberattack, the incident resulted in delays and service disruptions worldwide. Microsoft worked to address the issue, acknowledging residual impacts on some Microsoft 365 applications and services.