Bill & Melinda Gates Foundation Trust Sells 2.3M Microsoft Shares

The Bill & Melinda Gates Foundation Trust, managed by Bill Gates, has reduced its stake in Microsoft by 2.266 million shares. Despite concerns over valuation, Microsoft's strong growth in cloud and AI sectors makes it a compelling long-term investment. The stock has a "Outperform" rating according to Spark, TipRanks' AI Analyst.

Microsoft has announced significant changes to its pricing strategy for Online Services in Enterprise Agreements, effective November 1, 2025. These changes aim to align pricing with the existing model for services like Azure and reduce licensing complexity. The move is expected to affect many customers, particularly larger ones, who currently enjoy substantial discounts via volume licensing. The new pricing will align with rates published on Microsoft.com, potentially leading to increased costs for some customers [1].

The Bill & Melinda Gates Foundation Trust, managed by Bill Gates, has recently reduced its stake in Microsoft by 2.266 million shares. This decision comes amid concerns over Microsoft's valuation but highlights the foundation's long-term investment strategy in the company. Despite the reduction, the foundation's investment in Microsoft reflects confidence in the company's strong growth in cloud and AI sectors. Microsoft's stock has a "Outperform" rating according to Spark, an AI analyst from TipRanks [3].

Microsoft's latest financial results demonstrate robust growth across its Azure, AI, and Copilot platforms. Azure achieved remarkable scale, surpassing $75 billion in annual revenues with 34% growth, while expanding its global infrastructure to more than 400 datacenters across 70 regions. The company's AI assistants, including Microsoft 365 Copilot for commercial customers and the consumer Copilot in Windows, have reached 100 million monthly active users. These achievements underscore Microsoft's leadership in the AI transformation and its ability to monetize AI investments [3].

The changes in Microsoft's pricing strategy are part of a broader effort to shift customers away from traditional Enterprise Agreements (EAs) to other channels like Microsoft Customer Agreements (MCAs) and MCAs for Enterprise (MCA-E). This strategy aims to capture the largest volume customers directly, thereby accelerating services revenues growth [1].

Microsoft's strong performance in the cloud and AI sectors, coupled with its leadership position, makes it a compelling long-term investment. However, the upcoming pricing changes may lead to increased costs for some customers, potentially impacting their decision to renew contracts or explore alternative solutions.

References:
[1] https://www.theregister.com/2025/08/15/microsoft_swats_volume_discounts_for/
[2] https://www.ainvest.com/news/microsoft-exxon-mobil-cisco-systems-raise-dividends-2508/
[3] https://finance.yahoo.com/news/buy-msft-amid-double-digit-114200118.html?.tsrc=rss