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Microsoft was the first company to participate in the PRISM surveillance program, according to leaked NSA documents obtained by The Guardian and The Washington Post in June 2013, and acknowledged by government officials following the leak. In December 2013, the company made a statement to further emphasize that it takes its customers’ privacy and data protection very seriously, saying that “government snooping potentially now constitutes an ‘advanced persistent threat,’ alongside sophisticated malware and cyber attacks”. Microsoft provides information about reported bugs in its software to intelligence agencies of the United States government, prior to the public release of the fix. Amid the layoffs, Microsoft also closed its office in Pakistan and laid off its employees there as part of its move toward a software-as-a-service and AI operating model.

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• However, the plan was short-lived, as Altman was subsequently reinstated as OpenAI’s CEO and Brockman rejoined the company amid pressure from OpenAI’s employees and investors on its board.
• The IDF’s usage of Azure intensified during the Gaza war and genocide, doubling its stored data to over 13.6 petabytes from March to July 2024.
• In July 2024, it was reported that the company was laying off its diversity, equity, and inclusion (DEI) team.
• With a few exceptions of new companies, like Netscape, Microsoft was the only major and established company that acted fast enough to be a part of the World Wide Web practically from the start.

Subsequently, two employees, software engineers Ibtihal Aboussad and Vaniya Agrawal, interrupted AI executive Mustafa Suleyman at a speaking event on April 4, 2025, in protest at the company’s support of Israel. The employees, part of the group No Azure for Apartheid, sought to address the company’s involvement in the Israeli government’s use of its technology. In October 2024, Microsoft fired two employees, software engineer Hossam Nasr and data scientist Abdo Mohamed, who organized an unauthorized vigil at its Redmond headquarters to honor Palestinians killed in the Gaza war. According to the complaint and media reports, Microsoft’s cloud services may have been used to store or process surveillance-related data. The probe scrutinized Microsoft’s bundling of cloud services with products like Office and security tools, as well as its growing AI presence through its partnership with OpenAI. The program authorizes the government to secretly access data of non-US citizens hosted by American companies without a warrant.

A Big Tech company, Microsoft is the largest software company by revenue, one of the most valuable public companies, and one of the most valuable brands globally. In November 2024, the Federal Trade Commission (FTC) launched an investigation into Microsoft, focusing on potential antitrust violations related to its cloud computing, AI, and cybersecurity businesses. This is due to the company being tax resident in Bermuda as mentioned in the accounts for ‘Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software worldwide. The company is often referred to as a “Velvet Sweatshop”, a term which originated in a 1989 Seattle Times article, and later became used to describe the company by some of Microsoft’s own employees. Historically, Microsoft has also been accused of overworking employees, in many cases, leading to burnout within just a few years of joining the company.

The company has also been criticized for the use of permatemp employees (employees employed for খেলাঘর বেড years as “temporary”, and therefore without medical benefits), the use of forced retention tactics, which means that employees would be sued if they tried to leave. Criticism of Microsoft has followed various aspects of its products and business practices, including surveillance of employees, “Velvet Sweatshop” practices, tax manipulation, and antitrust violations. Additional offices are located in Bellevue and Issaquah, Washington (90,000 employees worldwide). It is estimated to encompass over 8 million ft2 (750,000 m2) of office space and 30,000–40,000 employees. Microsoft initially moved onto the grounds of the campus on February 26, 1986, weeks before the company went public on March 13.

2014: Windows 8/8.1, Xbox One, Outlook.com, and Surface devices

On September 15, 2014, Microsoft acquired the video game development company Mojang, best known for Minecraft, for $2.5 billion. In August 2012, the New York City Police Department announced a partnership with Microsoft for the development of the Domain Awareness System which is used for police surveillance in New York City. The Surface was unveiled in June 2012, becoming the first computer in the company’s history to have its hardware made by Microsoft. It launched an alliance with Nokia in 2011 and Microsoft worked closely with the company to co-develop Windows Phone, but remained partners with long-time Windows Mobile OEM HTC. Microsoft implemented a new strategy for the software industry, providing a consistent user experience across all smartphones using the Windows Phone OS.

Bill Gates claims the cap on H1B visas makes it difficult to hire employees for the company, stating “I’d certainly get rid of the H1B cap” in 2005. In April 2016, the company sued the U.S. government, argued that secrecy orders were preventing the company from disclosing warrants to customers in violation of the company’s and customers’ rights. A Microsoft spokesperson stated that the corporation runs several programs that facilitate the sharing of such information with the U.S. government.

In September 2024, BlackRock and Microsoft announced a $30 billion fund, the Global AI Infrastructure Investment Partnership, to invest in AI infrastructure such as data centers and energy projects. The same month, Microsoft announced that it was building a “hyperscale data centre” in South East Leeds. Meanwhile, that month, the company announced a subscription offering of artificial intelligence for small businesses via Copilot Pro. In March 2024, Inflection AI’s cofounders Mustafa Suleyman and Karen Simonyan announced their departure from the company in order to start Microsoft AI, with Microsoft acqui-hiring nearly the entirety of its 70-person workforce. However, the plan was short-lived, as Altman was subsequently reinstated as OpenAI’s CEO and Brockman rejoined the company amid pressure from OpenAI’s employees and investors on its board.

In October 2021, Microsoft announced that it began rolling out end-to-end encryption (E2EE) support for Microsoft Teams calls in order to secure business communication while using video conferencing software. In the same month, Microsoft acquired Australia-based video editing software company Clipchamp. In September 2021, it was announced that the company had acquired TakeLessons, an online platform that connects students and tutors in numerous subjects.