Microsoft builds workplace software, operating systems and cloud infrastructure for consumers, businesses and government agencies, from small organizations to global enterprises. Microsoft 365 combines Word and Excel with Teams communication and Copilot AI features, while Windows runs PCs and Surface supplies the company's own computers. Azure rents computing capacity, storage and databases to build and run web applications. Microsoft also sells Xbox consoles and games, collecting revenue through software licenses, subscriptions, usage charges and product sales. Founded in 1975 by Bill Gates and Paul Allen, Microsoft is headquartered in Redmond, Washington.
Company Size
10,001+
Company Stage
IPO
Headquarters
Redmond, Washington
Founded
1975
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Venture capitalist Chamath Palihapitiya said power and physical infrastructure could be the lasting constraints in the AI race. He posted on X on Monday, after Microsoft announced its own silicon chips. Palihapitiya wrote that chipmakers will move up the stack while application companies move down it, so "everyone competes with everyone." He asked whether distribution, a data moat, or a physical limit such as power would support long-term margins. Elon Musk replied that scaling power, fast construction, cooling, networking, and batteries "is hard." Microsoft chief executive officer Satya Nadella said the company will scale its Maia chips to multi-gigawatt deployments starting next year. He said the Maia 300 delivers 40% more tokens per watt than leading GPU-based systems.
Peter Lee, who recently announced his departure as president of Microsoft Science, plans to join the Mercedes Formula 1 team as an AI advisor, he told Fortune. The role is newly created, and his title is still under discussion. Lee spent 16 years at Microsoft. At Mercedes, he will use AI to tackle car physics problems, break down data silos, build financial and predictive models, and advise on how regulators might govern AI in the sport. He is expected to sign a one-year contract with an option for a second. "I have always wanted to be a racer," Lee said. His exit follows other Microsoft departures this year, including Ryan Roslansky and Frank X. Shaw.
Microsoft has unveiled its latest homegrown Maia chips, part of an effort to rely less on outside semiconductor makers for its AI ambitions, Bloomberg reports. Elon Musk, meanwhile, wants to speed up chip development by testing as many as 10 new designs a year. Apple is also set to unveil its new smart home strategy, which seeks to fill a major gap in its ecosystem.
micro1, a San Francisco data lab that trains frontier AI models and evaluates agents, said it has passed $1 billion in annual run rate while staying profitable. It also priced a Series B at a $4 billion valuation. Dream Ventures, one of its earliest investors, led the round. Microsoft, Javelin, Flybridge, G Squared, Up Partners, and LG also took part. A tender offer of about $25 million lets early employees sell shares. The company passed $500 million in annual run rate this summer. About three years ago, it lost 60% of its revenue overnight and nearly went bankrupt. micro1 has a fully remote core team of about 180 people across more than 14 countries. It plans to slow headcount growth significantly while expanding data generation and training environments.
Microsoft has unveiled the Azure Maia 300, its latest AI chip, as it seeks to rely less on processors from Nvidia and AMD. It debuted at the OCP Global Summit 2026 in San Jose on Monday. The Maia 300 will join the Maia 200 and Maia 100 in multi-gigawatt deployments starting next year. Microsoft says the chips will become the "primary AI inference system for Microsoft products and services." The company says the Maia 300 delivers 40% more tokens per megawatt than leading GPU-based systems. A 96-chip rack offers seven times the token throughput of the Maia 200. Amazon, Google, Meta, OpenAI, and Anthropic also offer or are building custom chips. Even so, hyperscalers will likely keep buying Nvidia's chips, which remain the most in demand.