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In 1972, they founded Traf-O-Data, which sold a rudimentary computer to track and analyze automobile traffic data. Childhood friends Bill Gates and Paul Allen sought to make a business using their skills in computer programming. If you already have a Microsoft 365 subscription (or a work or school license), sign in to download and install Microsoft 365 apps. With Copilot, you get AI assistance built into the Microsoft 365 apps.
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. In June 2022, Microsoft published the report on Russian cyber attacks and concluded that state-backed Russian hackers "have engaged in "strategic espionage" against governments, think tanks, businesses and aid groups" in 42 countries supporting Kyiv. 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. In June 2024, Microsoft announced it would be laying off 1,000 employees from the company's mixed reality and Azure cloud computing divisions. On October 7, Microsoft acquired Ally.io, a software service that measures companies' progress against OKRs, planning to incorporate it into its Viva family of employee experience products. 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.
The public cloud computing platform provides access to quantum software and quantum hardware including trapped ion, neutral atom, and superconducting systems. During the summer of 2015 the company lost $7.6 billion related to its mobile-phone business, firing 7,800 employees. This inquiry was part of broader efforts by the U.S. government to enforce guidelines on the power of major tech companies. 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. The program authorizes the government to secretly access data of non-US citizens hosted by American companies without a warrant.
Blizzard president Mike Ybarra and chief design officer Allen Adham also resigned. The layoffs primarily affected Activision Blizzard employees, but some Xbox and ZeniMax employees were also affected. 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 is run by a board of directors made up of mostly company outsiders, as is customary for publicly traded companies. Microsoft is ranked No. 14 in the 2022 Fortune 500 rankings of the largest United States corporations by total revenue; and it was the world's largest software maker by revenue in 2022 according to Forbes Global 2000. Microsoft also confirmed that its Maia 200 AI accelerator, first revealed in January 2026, had entered production deployment in data centers in Iowa and Arizona, powering workloads including Microsoft 365 Copilot and OpenAI's GPT-5.2 models.
The Human Rights Campaign Corporate Equality Index, a report of how progressive the organization deems company policies towards LGBT employees, rated Microsoft as 87% from 2002 to 2004 and as 100% from 2005 to 2010 after it allowed gender expression. 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. Microsoft is an outspoken opponent of the cap on H-1B visas, which allows companies in the U.S. to employ certain foreign workers.
Dame Margaret Hodge, a Labour MP in the UK said, "It is unsurprising – yet still shocking – that massively wealthy global corporations openly, unashamedly and blatantly refuse to pay tax on the profits they make in the countries where they undertake business". 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. As reported by several news outlets, an Irish subsidiary of Microsoft based in the Republic of Ireland declared £220 bn in profits but paid no corporation tax for the year 2020. This characterization is derived from the perception that Microsoft provides nearly everything for its employees in a convenient place, but in turn overworks them to a point where it would be bad for their (possibly long-term) health. 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.
Microsoft stated that the underlying cause had been fixed but acknowledged ongoing residual impacts on some Microsoft 365 apps and services. The outage was traced back to a flawed update of CrowdStrike's cybersecurity software, which resulted in Microsoft systems crashing and causing disruptions across various sectors. On July 19, a global IT outage impacted Microsoft services, affecting businesses, airlines, and financial institutions worldwide. Meanwhile, that month, the company announced a subscription offering of artificial intelligence for small businesses via Copilot Pro. 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 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 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 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. When the Internal Revenue Service audited these transactions, ProPublica reported that Microsoft aggressively fought back, including successfully lobbying Congress to change the law to make it harder for the agency to conduct audits of large corporations.
Noted for its internal lexicon, the expression "eating your own dog food" is used to describe the policy of using pre-release and beta versions of products inside Microsoft to test them in "real-world" situations. Microsoft noted in a blog post that the attack might have been prevented if the accounts in question had enabled multi-factor authentication, a defensive measure which is widely recommended in the industry, including by Microsoft itself. 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". A Microsoft spokesperson stated that the corporation runs several programs that facilitate the sharing of such information with the U.S. government. The cuts affected multiple divisions, including Xbox, with 830 positions eliminated at its Redmond, Washington headquarters. In July 2025, Microsoft announced another round of layoffs, cutting approximately 9,000 employees in its largest workforce reduction in over two years.
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