Microsoft shares steady after global outage as AI rivalry heats up

Microsoft shares stabilized Friday after a global outage disrupted Outlook, Teams, and Copilot services across over 70 countries, raising concerns about reliance on centralized cloud systems amid intensifying AI competition. The outage began Thursday and affected Microsoft 365 services used by more than 430 million people, including governments and organizations. Microsoft engineers worked over 20 hours to resolve the issue, apologizing and stating they had no timeline for full restoration, though they reported "broad recovery and stability." The incident highlights risks of dependence on major tech providers, potentially boosting demand for backup services from firms like Mimecast. Microsoft faces added pressure from AI rivals, including Anthropic's new office tools, ahead of its Ignite conference where investors expect updates on Azure and Copilot momentum.