Microsoft has had a rough few days, not quite Nvidia levels of bad, but far from ideal.
A global outage hit the company's Outlook, Teams, and Copilot AI assistant, impacting users across more than 70 countries, according to outage tracker Downdetector. More than 430 million people use Microsoft 365 services, as well as governments and organizations around the world.
As of Saturday morning, the number of users reporting issues with Microsoft products to Downdetector had dwindled, and Microsoft's service health status webpage was showing that consumer products were operational.
The timing of the outage is particularly inconvenient for Microsoft. Anthropic launched a new suite of office tools on Tuesday and the market saw it as a direct challenge to the tech giant.
Engineers worked to fix the problem for more than a day. At 11:40 a.m. Eastern time Friday, the company again apologized for the disruption and said it was seeing "broad recovery and stability" across its services.
A Microsoft account on X dedicated to posting updates on Microsoft 365 status issues wrote early Saturday morning that the company "completed our efforts to address the underlying issue of the incident and restored service to the remaining impacted customers and regions."
"Given the scale of demand, we restored services gradually, validating stability at each stage. While this took longer, it helped ensure a stable restoration," Microsoft said.
The company's updates illustrate it was a slog of an effort to restore services. Microsoft said in a status update shortly after 10 p.m. Thursday, more than nine hours after first confirming it was investigating the issue, that changes "applied to improve serviceability" weren't "taking as expected."
Over the intervening hours, however, Microsoft reported improvements in service availability, with email queues significantly reduced and approaching normal levels.
The company has also said the outage was a technical issue and wasn't related to cybersecurity or artificial-intelligence agents. Microsoft will provide a full post-incident report once the company's review is complete.
The stock rose 0.2% to $523.88 on Friday, recovering from a drop of more than 2% in the premarket session.
It's been a tough week for the tech giant. Reports of OpenAI's latest figures suggested that it's some way behind Anthropic in the AI race.
That's bad news for Microsoft, which has a 24% stake in the OpenAI and a much smaller investment in Anthropic.
Investors, however, might be in for some good news next week when the tech company holds its "Ignite" conference. Microsoft is expected to focus on advancements around its cloud platform, Azure, and Copilot.
"We expect the event to reinforce confidence in Microsoft's AI growth narrative," Citi analyst Tyler Radke said in a research note.
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