Sir Christopher Hohn’s TCI shed nearly its entire $8 bn position in Microsoft, cutting its portfolio share from 10 % to 1 % by March. The move follows an investor letter warning that AI could erode the company’s Office and Azure dominance.

Hohn cited rapid AI advances as creating uncertainty for Microsoft’s competitive edge, especially in productivity software where new AI‑driven platforms might replace legacy workflows. The letter also flagged potential risks in Azure, signalling a broader caution over the tech giant’s cloud bets.

The sale marks a rare shift for TCI, which has chased long‑term growth in a handful of high‑quality stocks. Microsoft’s shares have slid 14 % in 2026 amid doubts that the firm can monetize its hefty AI investments, a concern echoed by the fund’s withdrawal.

TCI’s biggest tech holding now is Alphabet, rising from 3 % to 5 % of the portfolio, underscoring a strategic pivot toward companies with clearer AI monetisation paths. Investors will watch how this reshuffling affects Microsoft’s valuation and the broader market’s AI narrative.