Microsoft has partnered with Elon Musk’s Starlink to expand digital access in rural areas using satellite connectivity. The announcement provided a slight stock lift for both Microsoft and Tesla. Microsoft’s Chief Sustainability Officer stated the collaboration is part of a holistic approach and revealed the company exceeded its goal to provide internet access to 250 million people by 2025, reaching over 299 million globally.
Microsoft announced a new partnership with Elon Musk’s Starlink to expand its tools for delivering digital access in rural communities. This spurred a slight stock increase for both MSFT and Starlink sister company Tesla.
“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” said Microsoft’s Chief Sustainability Officer Melanie Nakagawa in a blog post. She stated this expands tools for digital access within a partnership-driven approach.
The Microsoft CSO also revealed the tech giant met and exceeded its 2022 goal of expanding internet access to 250 million people by the end of 2025. The company has offered connectivity to over 299 million people globally.
Shares in Microsoft stock are up a fraction of a percent but remain below their 52-week moving average. The majority of Wall Street analysts still have a buy rating for MSFT stock.
Leading investment bank Goldman Sachs recently reiterated its “buy” rating on MSFT stock. This comes after the tech giant has shed nearly 25% in value in the last six months and lost close to 19% year-to-date.
The Starlink partnership is seen as a further dive into AI for Microsoft, a decision receiving mixed feedback. Microsoft has pledged billions to expanding AI infrastructure and building new data centers.
The Starlink deal could be the most promising effort yet. Starlink and Meta aren’t new to working together, as the latter led a $40 million funding round for SpaceX’s Starlink broadband network back in 2024.
