Microsoft has revealed a new collaboration with Elon Musk’s Starlink aimed at improving digital connectivity in remote and underserved regions. Following the news, Microsoft’s shares saw a modest uptick, alongside gains in Starlink’s affiliate, Tesla.
According to Microsoft Chief Sustainability Officer Melanie Nakagawa, the partnership blends low-Earth-orbit satellite internet with locally driven deployment strategies and regional partnerships. The goal is to broaden access to digital tools while maintaining a community-focused, cooperative rollout model.
Nakagawa also noted that Microsoft has already surpassed its previous connectivity target. The company initially aimed to bring internet access to 250 million people by the end of 2025, but has now extended connectivity to more than 299 million users worldwide.
Microsoft shares are slightly higher in Tuesday trading, though the stock remains below its 52-week average. Despite recent weakness, nearly a 25% decline over the past six months, and about 19% down year-to-date, most Wall Street analysts continue to rate the stock as a buy. Goldman Sachs recently reaffirmed its positive outlook on Microsoft shares.
The Starlink agreement is also being viewed as part of Microsoft’s broader push into artificial intelligence infrastructure. While analysts are divided on the scale of Big Tech’s AI spending, Microsoft has committed billions toward new data centers and expanded computing capacity. Some see satellite connectivity as a potentially strategic complement to those investments.
Starlink’s relationship with major technology players is not new. In 2024, Meta led a $40 million funding round for SpaceX’s satellite broadband network.
