Billionaire investor Bill Ackman unveils Microsoft investment

Bill Ackman is optimistic about Microsoft's prospects in the age of AI.

"In our 13F filing which will be submitted later today, we will reveal a new stake in Microsoft, a company we've tracked for many years now presenting a highly attractive valuation," the billionaire shared in an early Friday morning X post.

"While $PSUS won't be submitting a 13F tomorrow, it has also recently made $MFST a central investment," he mentioned.

Ackman's Pershing Square hedge fund will disclose its US stock assets as of March 31 later today, in a filing with the SEC known as a "13F."

He launched Pershing Square USA, a closed-end fund directed at retail investors, on the New York Stock Exchange in late April.

Ackman announced the new stake on X by noting his team has "occasionally discovered opportunities to buy some of the most influential long-term compounding companies at appealing valuations."

He cited Alphabet, Amazon, and Meta as examples from recent years.

Ackman justified his Microsoft bet by highlighting its ownership of "two of the most valuable enterprises in tech," namely M365 —a software suite featuring Word, Excel, and Powerpoint — and Azure, its cloud service already pivotal in enabling the AI surge.

He further stated that Microsoft's valuation "does not account for the worth of Microsoft's roughly 27% stake in OpenAI, which would equate to approximately $200 billion, or 7% of Microsoft's market value, based on OpenAI's latest funding round valuation."