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On November 20, 2023, Satya Nadella announced that Sam Altman, who had been ousted as CEO of OpenAI just days earlier, and Greg Brockman, who had resigned as president, would join Microsoft to lead a new advanced AI research team. The service includes Copilot, a GPT-4 based large language model tool to query and visualize data, write code, initiate simulations, and educate researchers. In June 2023, Microsoft released Azure Quantum Elements to run molecular simulations and calculations in computational chemistry and materials science using a combination of AI, high-performance computing and quantum computing. On January 23, 2023, Microsoft announced a new multi-year, multi-billion dollar investment deal with ChatGPT developer OpenAI. Microsoft also named Phil Spencer, head of the Xbox brand since 2014, the inaugural CEO of the newly established Microsoft Gaming division, which now houses the Xbox operations team and the three publishers in the company’s portfolio (Xbox Game Studios, ZeniMax Media, Activision Blizzard).

• On September 21, 2020, Microsoft announced its intent to acquire video game company ZeniMax Media, the parent company of Bethesda Softworks.
• The initiative is meant to speed innovation through simple software changes in telecommunications networks, wireless networks, data centers, and other networking areas.
• Intune for Education is a new cloud-based application and device management service for the education sector.
• In May 2025, Microsoft issued an unsigned statement confirming that these services had been made available to Israel, while denying that these tools were employed during the massacre of the people of Gaza.
• On March 1, 2016, Microsoft announced the merger of its PC and Xbox divisions, with Phil Spencer announcing that Universal Windows Platform (UWP) apps would be the focus for Microsoft’s gaming in the future.

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In May 2025, Microsoft announced that it is laying off more than 6,000 employees, around three percent of the company’s entire workforce. The increased necessity for remote work and distance education drove demand for cloud computing and grew the company’s gaming sales. In the same month, Microsoft announced the open source implementation of Windows Forms and the Windows Presentation Foundation khelaghor game (WPF) which will allow for further movement of the company toward the transparent release of key frameworks used in developing Windows desktop applications and software. In May 2018, Microsoft partnered with 17 American intelligence agencies to develop cloud computing products.

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Concerns were raised about Microsoft’s licensing practices potentially locking customers into its services and its AI investments possibly sidestepping regulatory oversight. This inquiry was part of broader efforts by the U.S. government to enforce guidelines on the power of major tech companies. The company has a history of antitrust battles in the U.S. and Europe, with over €2 billion in EU fines previously imposed for similar abuses. The European Commission issued a statement of objections, alleging Microsoft’s practice since 2019 gave Teams an unfair market advantage and limited interoperability with competing software. In June 2024, Microsoft faced a potential EU fine after regulators accused it of abusing market power by bundling its Teams video-conferencing app with its Office 365 and Microsoft 365 software.

Microsoft moved its headquarters from Bellevue to Redmond, Washington, on February 26, 1986, and went public with an initial public offering (IPO) at the NASDAQ exchange on March 13, with the resulting rise in stock making an estimated four billionaires and 12,000 millionaires from Microsoft employees. In August 1977, the company formed an agreement with ASCII Magazine in Japan, resulting in its first international office of ASCII Microsoft. It has been criticized for monopolistic practices, and the company’s software received criticism for problems with ease of use, robustness, and security. Microsoft became the third publicly traded U.S. company to be valued at over $1 trillion in April 2019.

In July 2025, Microsoft announced another round of layoffs, cutting approximately 9,000 employees in its largest workforce reduction in over two years. In November 2018, the company won a $480 million military contract with the U.S. government to bring augmented reality (AR) headset technology into the weapon repertoires of American soldiers. Consequently, in February 2011 Microsoft released a corporate bond amounting to $2.25 billion with relatively low borrowing rates compared to government bonds.

The company has also been criticized for the use of permatemp employees (employees employed for 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.