Microsoft has teamed up with Elon Musk’s Starlink to bring low-Earth-orbit satellite connectivity into a community-focused push to expand internet access in rural and hard-to-reach areas.
“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” Microsoft’s Chief Sustainability Officer Melanie Nakagawa wrote in a blog post. “This is intended to expand the set of tools available to deliver digital access while remaining firmly embedded in a holistic, partnership-driven approach.”
The announcement nudged Microsoft (MSFT) shares slightly higher on Tuesday and also gave a small lift to Tesla (TSLA), another Musk-led company. Microsoft added that it has already beaten its own 2022 goal to extend internet access to 250 million people by 2025 — reporting connectivity to more than 299 million people worldwide so far.
Market context
- MSFT shares rose a fraction on the news but still trade below their 52-week moving average.
- Most sell-side analysts maintain “buy” ratings, and Goldman Sachs recently reiterated its “buy” rating on the stock.
- Microsoft has nevertheless lost nearly 25% of its market value over the past six months and is down about 19% year-to-date.
Why it matters
The tie-up with Starlink aligns with Microsoft’s broader push into artificial intelligence and infrastructure. The company has committed billions toward AI-focused data centers and other buildouts; adding satellite connectivity could strengthen edge and remote access for developers and services that rely on fast, reliable links. Analysts have given mixed feedback on Microsoft’s aggressive AI investments, but the Starlink deal is being viewed as a practical step to extend connectivity and platform reach.
Broader tech linkages
Starlink already has partnerships across big tech — Meta, for instance, led a $40 million funding round for Starlink’s broadband network in 2024 — and the Microsoft collaboration underscores growing industry interest in combining satellite networks with cloud and AI services.
Implication for crypto and Web3 (note for crypto readers)
Improved satellite coverage could accelerate crypto and Web3 adoption in underserved regions by enabling users to access wallets, dApps, and blockchain services where terrestrial internet is weak. More reliable connectivity also creates potential for remote validators, nodes, and real-world use cases that rely on continuous online access.
Read more AI-generated news on: undefined/news
