The Bill & Melinda Gates Foundation Trust has sold its remaining shares of Microsoft, marking the first time since the foundation's inception in 2000 that it holds no stake in the company. According to a 13F filing on May 15, 2026, the trust divested 7.7 million shares in the first quarter of 2026, valued at approximately $3.2 billion. This sale concludes a two-year reduction that began with 28.5 million shares. On the same day, Microsoft's stock dipped 0.42% to $422.07, even as billionaire investor Bill Ackman disclosed a new $2.3 billion investment in the company.
Why the Gates Foundation Sold Its Microsoft Stake
The decision to sell is not a negative signal about Microsoft's prospects. Bill Gates committed last year to spending the foundation's entire endowment by 2045, with annual grants increasing to $9 billion this year. To meet this payout schedule, the trust needed to convert its concentrated holdings into cash. Microsoft shares had been a cornerstone of the portfolio for decades, primarily because Gates personally donated them over the years. Warren Buffett's annual gifts of Berkshire Hathaway shares also contributed to the foundation's assets.
At its peak in 2022, Microsoft represented roughly 27% of the trust's holdings. However, a wind-down strategy required reducing concentration, so trimming began in the fourth quarter of 2023. The largest single reduction occurred in the third quarter of 2025, when the trust cut nearly 65% of its position. The first quarter of 2026 completed the exit.
According to Barron's, the trust's portfolio is now valued at $31.7 billion after the sale. As a private foundation, it pays a federal excise tax of only 1.39% on net capital gains, significantly lower than the standard capital gains rate for individual investors.
Bill Ackman Buys Microsoft Stake as Foundation Exits
On the same day, Pershing Square's Bill Ackman disclosed a new position of 5.65 million Microsoft shares, worth about $2.3 billion. He stated his cost basis was 21 times forward earnings, arguing that Microsoft's artificial intelligence business is undervalued after a February restructuring of its OpenAI cloud deal caused the stock to drop. Ackman's purchase did not fully absorb the foundation's sale—he was short by roughly 2 million shares—which partly explains why Microsoft shares closed lower despite the bullish disclosure.
Microsoft remains central to the AI infrastructure sector. The $9.7 billion data center deal with IREN and the partnership with the London Stock Exchange continue to support Azure's growth narrative as the next earnings cycle approaches. For Bill Gates personally, the financial connection to the company he co-founded with Paul Allen in 1975 has officially ended.
