Bill Ackman Invests $2.1B in Microsoft, Betting Big on AI
Billionaire investor Bill Ackman revealed on May 15, 2026, that his hedge fund, Pershing Square, has amassed a $2.1 billion stake in Microsoft. This move positions Microsoft as a central holding in his concentrated portfolio.
Ackman initiated the accumulation of shares in February, following a 15% decline in Microsoft’s stock year-to-date. This drop was primarily due to investor apprehensions about AI competition from Amazon and Google, as well as Microsoft’s substantial $190 billion capital expenditure plan for 2026. Pershing Square procured approximately 5.7 million shares at an average price of about $66.50, acquiring the position at 21 times forward earnings—significantly below Microsoft’s historical trading average.
In a comprehensive post on social media platform X, Ackman underscored Microsoft’s dominance in the enterprise AI sector through its Azure cloud services and the M365 Copilot assistant. The latter commands a $30 per user monthly fee. He further pointed out that Microsoft’s market cap does not reflect the value of its 27% stake in OpenAI, estimated to be worth approximately $200 billion.
This investment is consistent with Ackman’s strategy of purchasing Big Tech stocks during AI-related selloffs. In a noteworthy move, Pershing Square also completely exited its Alphabet position during the quarter, redirecting capital into Microsoft.
Source: Bloomberg