Gates Foundation Exits Microsoft After Decades — on the Same Day Ackman Bought $2.1 Billion Worth
On the same day the Gates Foundation sold its final $3.2B Microsoft stake to fund charitable commitments, Bill Ackman's Pershing Square disclosed a brand-new $2.09B position in the same stock. Two opposite moves, two completely different reasons.
- The Gates Foundation sold its final 7.7M Microsoft shares ($3.2B) to fund charitable operations, while Ackman's Pershing Square built a new $2.09B MSFT position on the same day, betting that Copilot adoption fears are overblown
Same stock, same day. The Gates Foundation sold Microsoft — a position held for decades. Bill Ackman bought $2.09 billion worth of it.
It was one of the most dramatic juxtapositions of the Q1 2026 13F filing season. The Bill & Melinda Gates Foundation Trust disclosed it sold its final 7.7 million Microsoft (MSFT) shares, a roughly $3.2 billion exit that ends a decades-long position in the company Gates co-founded. Just hours before the foundation filed, Ackman's Pershing Square Capital Management used a lengthy post on X to announce a brand-new Microsoft position in the same stock.
Why the Gates Foundation sold
The sale is not a change in investment view. In May 2025, Bill Gates announced the foundation would sunset operations in 2045 and deploy roughly $200 billion in charitable work over the next 20 years. Funding that commitment requires selling assets systematically — a structural decision entirely separate from any view on Microsoft's business.
The Foundation's MSFT stake fell from roughly 28.5 million shares at end of Q1 2025, trimmed to 7.7 million by year-end, and zeroed out this quarter. The position Gates built in the company he co-founded is now gone.
Why Ackman bought
Pershing Square's 13F showed 5.65 million shares worth roughly $2.09 billion at quarter-end. Ackman started building the position in February, right as Microsoft's fiscal Q2 2026 earnings sent the stock tumbling. He financed the purchase by selling Alphabet (GOOGL) holdings.
"Our sale of $GOOG was not a bet against the company," Ackman wrote on X. He described himself as "very bullish long term on Alphabet" but said he used GOOGL as a funding source for the MSFT position given Pershing's finite capital base.
Our sale of $GOOG was not a bet against the company. We used $GOOG as a source of funds for $MSFT.
Bill Ackman, X post
The Copilot adoption issue markets missed
Ackman's contrarian thesis centers on Copilot fear. Microsoft has converted only about 15 million of its 450 million paid M365 commercial seats into paying Copilot users. Independent research showed Copilot's market share fell from 18.8% in July 2025 to 11.5% by January 2026.
CEO Satya Nadella restructured the AI division in March and sidelined the AI executive he paid $650 million to recruit. Ackman views this as a near-term adjustment that markets over-penalized. His concentrated buying during the drawdown reflects that conviction.
Opposite directions, different reasons
The Gates Foundation's exit says nothing about Microsoft's business — it is structural, a foundation winding down to fund philanthropy. Ackman's entry is a contrarian bet that Copilot adoption fears are overblown and the AI productivity story remains intact. Two legendary investors, same stock, same day, completely different stories. This is how markets work.
Frequently Asked Questions
Why did the Gates Foundation sell all of its Microsoft shares?
Not an investment call — it's structural. Gates announced in May 2025 that the foundation will shut down operations in 2045 and spend roughly $200 billion on charitable work over 20 years. Funding that requires selling holdings. MSFT was the last major position.
How much Microsoft did Ackman buy?
Pershing Square held 5.65 million shares worth about $2.09 billion at Q1 2026 quarter-end. Ackman financed the purchase by selling Alphabet (GOOGL) holdings, which he stressed was not a bearish call on Alphabet.
What is the Microsoft Copilot adoption problem?
Microsoft converted only about 15 million of its 450 million paid M365 seats into paying Copilot users. Third-party research showed Copilot's market share fell from 18.8% in July 2025 to 11.5% by January 2026. Ackman believes the market over-penalized this.
Does the Gates Foundation sale signal anything negative about Microsoft?
No. The sale is entirely about funding philanthropic commitments — the foundation is winding down by 2045. It carries no information about Microsoft's business prospects or valuation.
Did Ackman turn bearish on Alphabet by selling it?
No. Ackman explicitly said: "Our sale of $GOOG was not a bet against the company. We are very bullish long term on Alphabet. We used $GOOG as a source of funds for $MSFT."
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