Microsoft stock falls as Anthropic takes aim at Excel and workplace software

Microsoft and the ITI are lobbying against a potential FCC ban on Chinese optical transceivers, citing supply shortages and data center rollout delays. Chinese firms supply 66% of the global market, and only two U.S. companies produce the needed transceivers. The FCC is considering the ban due to national security concerns, with a possible compromise to only ban high-speed transceivers.

Microsoft shares fell 0.57% to $542.07 despite a $1 billion commitment to Anthropic's IPO. The deal follows a 2025 alliance where Anthropic agreed to $30 billion in Azure compute. Microsoft's upside is expected to come from consumption revenue, not equity gains. GuruFocus rates Microsoft 99/100, with shares trading 9.82% below its GF Value.

Microsoft surpassed Nvidia in market capitalization, becoming the world’s second most valuable company. Microsoft shares fell 0.4% to $543.25, while Nvidia shares dropped 6% to $167.11. Nvidia's decline is attributed to AI uncertainty and an investigation involving its CEO, according to Reuters.

Anthropic, an AI company, disclosed that Nvidia, Alphabet, AMD, Micron, Broadcom, Microsoft, and TSMC Partners will invest $26 billion in its IPO. Nvidia and Google each commit $10 billion, while others invest smaller amounts. The funds will support Anthropic's $900.9 billion infrastructure spending over 20 years, with $70.7 billion due by September 2027.

Microsoft is opposing a potential Trump administration ban on Chinese optical transceivers, citing risks to AI data center construction. The ban is proposed due to security concerns. Microsoft and other tech firms met with White House officials to discuss supply chain issues. Chinese manufacturers dominate the industry, and U.S. alternatives lack scale. Microsoft's shares rose 2.75% on Monday. The FCC's decision could impact AI infrastructure growth and costs.

IBM and Microsoft have partnered to launch Imagine Enterprise, a platform for large organizations to build and manage AI agents. The platform combines IBM's pre-built AI agents with Microsoft's cloud infrastructure. IBM Consulting will provide industry-specific expertise, while Microsoft supplies the foundational AI and scaling framework. The platform aims to help enterprises move AI pilots into full-scale production with built-in governance and oversight. Financial terms were not disclosed.