No deal has been reached between the two sides and the funding amount could vary as negotiations evolve, the person said. The companies have held talks in recent weeks, according to people familiar with the matter. Microsoft invested $1 billion in OpenAI in 2019.
Criticism of Microsoft has followed various aspects of its products and business practices. Frequently criticized are the ease of use, robustness, and security of the company’s software. They’ve also been criticized for the use of permatemp employees (employees employed for years as “temporary,” and therefore without medical benefits), the use of forced retention tactics, which means that employees would be sued if they tried to leave.
Historically, Microsoft has also been accused of overworking employees, in many cases, leading to burnout within just a few years of joining the company. 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. 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.
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 is due to the company being tax resident in Bermuda as mentioned in the accounts for ‘Microsoft Round Island One’, a subsidiary that collects licence fees from the use of Microsoft software worldwide.
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”.
In 2020, ProPublica reported that the company had diverted more than $39 billion in U.S. profits to Puerto Rico using a mechanism structured to make it seem as if the company was unprofitable on paper. As a result, the company paid a tax rate on those profits of “nearly 0%.” 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.
“Embrace, extend, and extinguish” (EEE), also known as “embrace, extend, and exterminate”, is a phrase that the U.S. Department of Justice found that was used internally by Microsoft to describe its strategy for entering product categories involving widely used standards, extending those standards with proprietary capabilities, and then using those differences to strongly disadvantage competitors. Microsoft is frequently accused of using anticompetitive tactics and abusing its monopolistic power.
People who use their products and services often end up becoming dependent on them, a process known as vendor lock-in. 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.
The program authorizes the government to secretly access data of non-US citizens hosted by American companies without a warrant. Microsoft has denied participation in such a program. Jesse Jackson believes Microsoft should hire more minorities and women. In 2015, he praised Microsoft for appointing two women to its board of directors
“Investment History”. Microsoft. Retrieved 2022-08-30.Menzes, Bill (April 1999). “Microsoft Joins @Home Solutions”. CBS Interactive. Retrieved 2008-10-31.“Accel Partners”. iWon. Archived from the original on 2006-05-26. Retrieved 2008-10-31.
Conlin, Robert (1999-09-27). “Microsoft Invests $15 Million in Akamai Technologies”. ECT News Network. Retrieved 2008-10-31.“Ameranth Technology Systems Inc. Announces Investment by Microsoft”. CBS Interactive. 2000-06-19. Archived from the original on 2012-07-11. Retrieved 2008-10-31.“AMERICAN CITY BUSINESS JOURNALS AND MICROSOFT ENTER INTO PARINERSHIP”. Business Publisher. Dun and Bradstreet. 2001-02-15. Retrieved 2008-10-31.
“Pfizer, IBM and Microsoft Collaborate to Launch Amicore Investment Company, a Software and Services Company, to Provide Office Automation Solutions to Physicians”. Microsoft. 2009-10-10. Archived from the original on 2010-01-08. Retrieved 2009-10-31.Kawamoto, Dawn; Ben Heskett; Mike Ricciuti (1997-08-06). “MR to invest $150 million in Apple”. CNet. Retrieved 2008-10-31.
“Ardent Communications Inc · S-1/A · On 3/16/99 · EX-10.24”. SEC Filing. 1999-03-16. Retrieved 2008-10-31.“Form Of Shareholder Agreement”. Tech Agreements. Retrieved 2008-10-31.Microsoft Announces Investment in Telewest: Microsoft has acquired a minority stake in Telewest, a leading cable company in the United Kingdom, to accelerate the deployment of… Archived 2005-02-15 at the Wayback Machine
“Microsoft Corporation Form 10-K”. U.S. Securities and Exchange Commission. July 28, 2022. pp. 8, 57, 59.“Fortune 500 list of companies 2020”. Fortune. Retrieved August 19, 2020.“U.S. Securities and Exchange Commission – Linkedin”. US SEC. December 8, 2016. Archived from the original on October 18, 2017. Retrieved April 29, 2018.
As a result of the Merger, a change in control of [Linkedin] occurred and [Linkedin] became a wholly-owned subsidiary of [Microsoft]. The transaction resulted in the payment of approximately $26.4 billion in cash merger consideration.
“Microsoft confirms takeover of Skype”. BBC. May 10, 2011. Archived from the original on June 20, 2018. Retrieved April 29, 2018.Keizer, Gregg (July 14, 2014). “Microsoft gets real, admits its device share is just 14%”. Computerworld. International Data Group. Archived from the original on August 21, 2016.
[Microsoft’s chief operating officer] Turner’s 14% came from a new forecast released last week by Gartner, which estimated Windows’ share of the shipped device market last year was 14% and would decrease slightly to 13.7% in 2014. [..] Android will dominate, Gartner said, with a 48% share this year
Blodget, Henry (August 23, 2013). “And Microsoft Is Giving Up On The Software Business!”. Business Insider Australia. Archived from the original on August 2, 2017. Retrieved August 2, 2017.“Notify The Next Of Kin”. InformationWeek. June 30, 2010. Archived from the original on April 24, 2014. Retrieved April 24, 2014.“Microsoft sees shares hit record high”. BBC. October 21, 2016. Archived from the original on October 16, 2017. Retrieved October 7, 2017.
“Microsoft’s cloud focus could mean yet more layoffs”. Engadget. Archived from the original on August 2, 2017. Retrieved October 7, 2017.“How did Microsoft just overtake Apple as the world’s most valuable company?”.BC News. Archived from the original on November 29, 2018. Retrieved November 28, 2018.Allan, Roy A. (2001). A History of the Personal Computer. Allan Publishing. ISBN 978-0-9689108-0-1. Retrieved July 17, 2010.“Bill Gates”.
Biography.com. Archived from the original on November 6, 2016. Retrieved November 8, 2016.“Microsoft Company History”. Archived from the original on August 6, 2013. Retrieved March 20, 2013.Finucane, Martin (December 30, 2008). “Harvard Square newsstand sold the magazine that started a revolution”. Boston.com. The New York Times Company. Archived from the original on January 1, 2009.
“Bill Gates: A Timeline”. BBC News Online. BBC. July 15, 2006. Archived from the original on June 22, 2006. Retrieved July 17, 2010.Schlender, Brent (October 2, 1995). “Bill Gates & Paul Allen Talk Check Out The Ultimate Buddy Act in Business History”. Fortune. Time Inc. Archived from the original on May 3, 2011. Retrieved April 25, 2011.Allen, Paul (2011). Paul Allen: Idea Man. Penguin Group. p. 91. ISBN 978-0-14-196938-1.
Staples, Betsy (August 1984). “Kay Nishi bridges the cultural gap”. Creative Computing. 10 (8): 192. Archived from the original on May 11, 2011. Retrieved July 15, 2010.Dyar, Dafydd Neal (November 4, 2002). “Under The Hood: Part 8”. Computer Source. Archived from the original on September 1, 2006. Retrieved July 14, 2010.Engines That Move Markets: Technology Investing from Railroads to the Internet and Beyond.
John Wiley & Sons. 2002. ISBN 978-0-471-20595-1. Archived from the original on March 23, 2019. Retrieved February 8, 2018.“Microsoft to Microsoft disk operating system (MS-DOS)”. Smart Computing. Sandhills Publishing Company. 6 (3). March 2002. Archived from the original on April 5, 2004. Retrieved August 18, 2008.Blaxill, Mark; Eckardt, Ralph (2009). The Invisible Edge: Taking Your Strategy to the Next Level Using Intellectual Property.
Portfolio. p. 210. ISBN 978-1-59184-237-8. Archived from the original on March 23, 2019. Retrieved February 8, 2018.“Paul Allen goes public with hard feelings toward Gates”. The Seattle Times. Archived from the original on November 4, 2016. Retrieved January 4, 2018.Wingfield, Nick; Guth, Robert A. (March 30, 2011). “Microsoft Co-Founder Hits Out at Gates”. The Wall Street Journal.
O’Connor, Clare. “10 Things You Didn’t Know About Microsoft Billionaire Paul Allen, Seattle Seahawks Owner”. Forbes. Archived from the original on February 2, 2018. Retrieved February 1, 2018.“Microsoft OS/2 Announcement”. April 10, 2010. Archived from the original on April 10, 2010. Retrieved August 9, 2017.
“Microsoft Chronology”. CBS News. CBS Interactive. Archived from the original on November 5, 2008. Retrieved August 5, 2010.Bick, Julie (May 29, 2005). “The Microsoft Millionaires Come of Age”. The New York Times. Archived from the original on April 12, 2006. Retrieved July 3, 2006.“U.S. v. Microsoft: Timeline”. Wired. Condé Nast. November 4, 2002. Archived from the original on April 19, 2010. Retrieved July 17, 2010.
Thurrott, Paul (January 24, 2003). “Windows Server 2003: The Road To Gold”. winsupersite.com. Penton Media. Archived from the original on June 4, 2010. Retrieved July 15, 2010.Athow, Desire (May 22, 2010). “Microsoft Windows 3.0 Is 20 Years Old Today!!!”. ITProPortal. Archived from the original on March 25, 2012. Retrieved April 4, 2012.
Miller, Michael (August 1, 1998). “OS Market Share 1993–2001 – Windows 98 Put to the Test”. PC Magazine. Ziff Davis. Archived from the original on May 11, 2011. Retrieved July 3, 2010.McCracken, Harry (September 13, 2000). “A Peek at Office Upgrade”. PC World. IDG. Archived from the original on May 6, 2009. Retrieved July 4, 2006.
“Competitive Impact Statement : U.S. v. Microsoft Corporation”. Justice.gov. Archived from the original on May 10, 2011. Retrieved May 11, 2011.Borland, John (April 15, 2003). “Victor: Software empire pays high price”. CNET. CBS Interactive. Archived from the original on November 16, 2011. Retrieved July 16, 2010.
Strebe, Matthew (February 20, 2006). Network Security Foundations: Technology Fundamentals for IT Success. ISBN 9780782151367. Archived from the original on March 23, 2019. Retrieved March 16, 2019.Cope, Jim (March 1996). “New And Improved”. Smart Computing. Sandhills Publishing Company. 4 (3). Archived from the original on July 6, 2004. Retrieved July 16, 2010.
Pietrek, Matt (March 1996). Windows 95 Programming Secrets. IDG. ISBN 978-1-56884-318-6. Retrieved July 17, 2010.Thurrott, Paul (May 19, 2005). “MSN: The Inside Story”. Supersite for Windows. Penton Media. Archived from the original on May 23, 2010. Retrieved July 17, 2010.Edwards, Benj (August 24, 2020).“Windows 95 Turns 25: When Windows Went Mainstream.”
How To Geek. Retrieved November 29, 2020.Chew, Jonathan (August 24, 2015). “Microsoft Launched This Product 20 Years Ago and Changed the World.” Fortune. Retrieved November 29, 2020.Microsoft collects little for Telewest call – CNET News
Marketing Programs To Buy: