Pershing Square Puts All In on Microsoft with $2.3 Billion AI Bet

Billionaire investor Bill Ackman's Pershing Square Capital Management has made Microsoft its largest artificial intelligence (AI) holding, according to recent portfolio updates.

The move comes after Ackman sold his entire stake in Alphabet and trimmed his position in Amazon by 25%, or 2.9 million shares, during the second quarter.

Pershing Square now holds a $2.3 billion position in Microsoft stock, representing 11.9% of its 14-stock portfolio, with 6.2 million shares.

The decision to invest in Microsoft is based on the company's strong growth, positive free cash flow, and increasing demand for Azure cloud services.

Pershing Square outlined its bullish sentiment toward Microsoft in its June interim report, citing the popularity of its 365 suite of software applications and the growth of Microsoft Azure.