Activist hedge fund TCI, managed by billionaire Chris Hohn, has substantially reduced its stake in Microsoft Corporation, according to reports citing the move as a response to concerns over artificial intelligence market disruption.

The Financial Times reported that TCI slashed what it described as an $8 billion Microsoft position, marking a significant shift in the fund's technology holdings. The reduction comes as investors grapple with uncertainty about how rapidly evolving AI technologies may impact established tech companies' business models.

Microsoft shares declined following news of TCI's stake reduction, according to Seeking Alpha. The software giant has been heavily investing in AI capabilities through its partnership with OpenAI and integration of AI features across its product suite, but some investors remain cautious about the long-term competitive landscape.

TCI, known for its activist approach to investing, has not publicly detailed its specific rationale for the Microsoft stake reduction beyond general concerns about AI disruption. The fund typically takes significant positions in companies where it believes it can influence corporate strategy and boost shareholder returns.

The move reflects broader market uncertainty about how traditional technology companies will navigate the AI transformation. While some investors see AI as a growth catalyst for established players like Microsoft, others worry about potential disruption from new entrants or shifts in market dynamics that could challenge existing business models.