Microsoft

Microsoft and Chevron are partnering on one of the largest gas-powered data centre projects in the United States, sited in West Texas where Chevron has direct access to Permian Basin supply. The deal is honest in a way most hyperscaler energy announcements are not: rather than routing fossil gas through a renewable energy certificate and calling it clean, this is an explicit acknowledgement that AI inference loads are outpacing what the grid and current renewables capacity can deliver. The business logic is unambiguous. Microsoft gets dedicated, dispatchable power; Chevron monetises stranded gas at industrial scale. The reputational exposure sits with Microsoft's 2030 carbon-negative commitments, which this project does not obviously advance. For UK operators watching the energy-AI nexus, this is the clearest signal yet that the path to AI buildout runs through fossil fuel infrastructure for at least the next five years, whatever the sustainability slides say.

ValueAct Capital's successful 2013 campaign against Microsoft offers a playbook for today's activists eyeing the software giant's recent decline. The firm secured a board seat by pressuring CEO Steve Ballmer's exit, generating billions in shareholder value when the stock jumped 7% on succession news. Now ValueAct is building stakes in Meta, Amazon, and Visa while Microsoft's P/E ratio lags peers, potentially signalling undervaluation or operational issues. The firm's recent moves show a preference for high-growth names over mature tech giants, but Microsoft's $3 trillion market cap remains activist catnip. With cloud growth slowing and AI competition intensifying, Microsoft could face governance pressure around capital allocation, buybacks, or strategic focus. The ghost of 2013 still haunts Redmond.

OpenAI is simultaneously attacking Anthropic and backing away from Microsoft — a two-front war that suggests the AI leadership is feeling cornered. The public spat with Anthropic isn't about technology; it's about positioning for the next funding round and enterprise contracts. Meanwhile, the Microsoft relationship that saved OpenAI from bankruptcy is becoming a liability as regulators circle and competitors cry monopoly. Sam Altman built the most valuable AI company by playing all sides. That strategy is expiring fast.