MICROSOFT CORP (MSFT) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that MICROSOFT CORP surfaced in its latest filing.

• In October 2023 we completed our acquisition of Activision Blizzard, Inc.October 2023
• We have a long-term strategic partnership with OpenAI.
• In late November 2023, a nation-state associated threat actor used a password spray attack to compromise a legacy test account, gaining access to Microsoft email accounts and subsequently unauthorized access to source code repositories and internal systems.November 2023
• We filed Form 8-K on January 19, 2024, and amended March 8, 2024, disclosing the incident.January 19, 2024
• We are currently under IRS audit for prior tax years and have received Notices of Proposed Adjustment (“NOPAs”) from the IRS for the tax years 2004 to 2013, with the IRS seeking an additional tax payment of $28.9 billion plus penalties and interest.
• In 2020 we announced goals to become carbon negative, water positive, and zero waste by 2030, and AI development and deployment has and will likely continue to raise energy use and emissions, making it harder to meet these goals.2020
• The conflicts in Ukraine and the Middle East pose risks.