Microsoft Corp., looking to reduce AI costs, is starting to replace OpenAI and Anthropic with its own models in software products like Excel and Outlook.

Microsoft stock is under pressure as the company cuts 4,800 jobs, trims Xbox staff, and reshapes its gaming portfolio while AI spending remains in focus.

Microsoft is cutting about 2.1% of its workforce, or roughly 4,800 jobs, the latest in a wave of tech layoffs as the Windows maker spends heavily on AI infrastructure and ​uses the technology to improve efficiency across its business.

Microsoft’s latest layoffs coincide with rising H‑1B filings, intensifying scrutiny of its AI‑driven workforce shift.

Microsoft is the latest tech company to form a business focused on helping customers understand and implement artificial intelligence.

Microsoft for years has been an active acquirer of gaming companies, including small independent ones. But that may be changing. Driving the news: The tech giant on Monday announced a giant restructuring of its Xbox unit,

Meta Platforms (NASDAQ: META | META Price Prediction) and Microsoft (NASDAQ: MSFT) both reported earnings on April 29, 2026, and both have been punished in 2026 despite operational strength. Meta is off 11.

The Investment Committee give you their top stocks to watch for the second half.