Bill Gates Sells All Microsoft Shares for $3.2 Billion
The Gates Foundation completely cleared its portfolio of shares in the corporation he founded in the first quarter. This is the final chord in preparations to give away $200 billion to charity by 2045.
Farewell to an Empire: Bill Gates Sells Last Microsoft Shares for $3.2 Billion
On May 15, 2026, the Bill & Melinda Gates Foundation Trust filed Form 13F with the SEC—and for the first time in a quarter century, the "Microsoft" line showed zero. The last 7.7 million shares were sold in the first quarter. The deal value: $3.2 billion. The man who built one of the greatest technology corporations on the planet has just officially cut the financial cord.
Period. End of an era. And the start of the most ambitious charitable giveaway in history.
$200 Billion by the Deadline: The Math of the Great Exodus
The sale was not a spontaneous decision. Back in May 2025, Gates announced that the foundation would cease to exist on December 31, 2045, and all assets—down to the last cent—would go to charity. Total payouts over 20 years will reach approximately $200 billion.
To grasp the scale: since 2000, the foundation has given away $100 billion. Now Gates plans to double that figure in half the time. Annual grants will already reach $9 billion this year. Such checks are not written from operating income—assets must be sold.
The trust began reducing its Microsoft position as early as the fourth quarter of 2023. A year ago, the portfolio held 28.5 million shares worth about $10.7 billion—roughly 26% of all fund assets. The most aggressive sell-off occurred in the third quarter of 2025, when nearly 65% of the position was shed. The first quarter of 2026 was the final chord.
The trust's portfolio is now valued at approximately $31.7 billion. As a private foundation, it pays a federal excise tax on capital gains at a rate of 1.39%—a paltry figure compared to what retail investors pay.
Ackman Enters Through the Same Door Gates Exits
This exit has a mirror image. Literally hours before the Gates Foundation Trust's 13F filing, Bill Ackman posted a long thread on X: his Pershing Square Capital Management had opened a new position in Microsoft. At quarter end: 5.65 million shares worth about $2.09 billion.
Ackman moved aggressively. He started buying shares in February, right after Microsoft's Q2 FY2026 earnings report sent the stock tumbling. He kept buying on the dip as shares fell from their July 2025 peak. Entry price: roughly 21x forward P/E, which Ackman called "broadly in line with the market and significantly below Microsoft's average multiple over the past few years."
His thesis rests on three pillars. First: Microsoft 365 is a franchise the market undervalues. There are 450 million commercial paid seats, but only 15 million have bought Copilot. Conversion rate: a paltry 3%. The gap between the current base and monetization potential is enormous.
Second pillar: AI spending is justified. Microsoft is spending $190 billion on capex in 2026. Critics call it bubble-blowing. Ackman counters with numbers: Azure revenue grew 39% in constant currency, and the AI business reached an annual run rate of $37 billion—up 123% year over year.
Third pillar: the OpenAI factor. Microsoft owns roughly 27% of OpenAI, a stake valued at about $200 billion in the latest round. That's 7% of Microsoft's market cap. Ackman argues the current stock price doesn't reflect this asset at all.
But Ackman couldn't absorb the entire volume the Gates Foundation dumped. The difference was about 2 million shares. Microsoft closed the filing day down 0.42% at $422.
A Gates-Style Divorce and the End of a Long-Standing Structure
The story of exiting Microsoft is inseparable from Gates's personal story. The foundation was created as the Bill & Melinda Gates Foundation. Melinda left the marriage in 2021 and the foundation in 2024. She is developing her own charitable projects.
At the same time, the era of Warren Buffett as a donor has ended. For years, the Oracle of Omaha annually contributed Berkshire Hathaway shares to the trust, strengthening the portfolio. The trust is now managed by Cascade Asset Management, but control over strategic decisions remains with Gates. Selling the last Microsoft stake was his personal decision, finalizing the break with the corporation he founded with Paul Allen in 1975.
Ironically, Microsoft today is an AI story, not a Windows story. The $9.7 billion deal with IREN for data centers, the partnership with the London Stock Exchange, the reorganization of the AI division in March—the company is reshaping itself for a new reality. Gates exits just as Microsoft makes its riskiest bet since the transition under Satya Nadella.
Reshuffling the Pieces on Three Trillion Dollars
While Gates sells and Ackman buys, the institutional world of Microsoft is fracturing. Chris Hohn of TCI Fund Management dumped most of his position, which previously stood at about $8 billion. Daniel Loeb of Third Point fully exited, selling 925,000 shares. Duan Yongping, on the other hand, increased his position by 207.7%.
Analysts at 13Radar characterize the overall institutional sentiment as "bearish": net outflows from Microsoft stock in Q4 2025 totaled $1.25 billion, with 29 buyers versus 19 sellers. But that was before Ackman aired his bullish thesis to all of Wall Street.
The most important point: none of the sellers are leaving due to Microsoft's weakness. The Gates Foundation is selling because of its charitable mandate. Hohn is reallocating capital to other AI assets. Loeb is taking profits after three years of holding. Not one major seller has said they are betting against the company.
But the market is nervous. Microsoft shares have fallen about 26% from their recent peak. Investors fear that $190 billion in capex won't pay off and that Copilot won't take off. Ackman calls those fears excessive. Gates—through action, not words—shows he no longer wants to wait to see who is right.
What Will Happen by 2045
The Gates Foundation now operates with a clear deadline. Twenty years to spend $200 billion. The math is simple: roughly $10 billion a year must go to fighting malaria, tuberculosis, maternal mortality, and poverty. The office closes on December 31, 2045.
The sale of Microsoft shares will continue with other assets. Berkshire Hathaway is likely next in line for reduction. The portfolio will shrink; grants will grow. By 2030, the Gates Trust will become the largest seller of blue chips on Wall Street simply because it has no other funding sources.
Microsoft shares, meanwhile, will remain a battleground between those who see AI spending as a bubble and those who see it as the foundation for the next decade of growth. Gates's departure does not make the company weaker. It simply closes a chapter in which founder and corporation walked hand in hand. Now they go their separate ways—and each is worth trillions.
— Editorial Team
