Microsoft (MSFT) has announced a new partnership with Elon Musk’s Starlink to expand its set of tools and deliver digital access in rural and hard-to-reach communities. The announcement spurred a slight stock increase for both MSFT and Starlink sister company Tesla (TSLA).
“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships. This is intended to expand the set of tools available to deliver digital access while remaining firmly embedded in a holistic, partnership-driven approach,” Microsoft’s Chief Sustainability Officer Melanie Nakagawa said in a blog post.
Additionally, the Microsoft CSO also revealed that the tech giant met and exceeded its 2022 goal of expanding internet access to 250 million people by the end of 2025, offering connectivity to over 299 million people globally.
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Shares in Microsoft (MSFT) stock are up a fraction of a percent on Tuesday, but remain trading below their 52-week moving average. The majority of analysts on Wall Street still have a buy rating for MSFT stock. Furthermore, leading investment bank Goldman Sachs recently reiterated its “buy” rating on MSFT stock. This comes even after the tech giant has shed nearly 25% in value in the last six months. MSFT has also lost close to 19% of its value year-to-date and remains under the bearish claws.
The Starlink partnership is seen as a further dive into AI for the Windows developer, a decision that has been received with mixed feedback from analysts. AI spending has been a hot topic among big tech, and Microsoft is no different. It has pledged billions to expanding AI infrastructure and building new data centers. The Starlink deal could be the most promising effort yet, though. Starlink and Meta aren’t new to working together either. Back in 2024, the latter led a $40M funding round for SpaceX’s Starlink broadband network.