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Received today — 12 March 2026 Microsoft On the Issues

Defending the gates: How a global coalition disrupted Tycoon 2FA, a major driver of initial access and large-scale online impersonation

4 March 2026 at 17:00

One email was all it took. An employee clicked what looked like a routine signin request. Behind the scenes, attackers swiped credentials, slipped past security controls, impersonated a trusted user, and gained access to critical systems. In other cases, similar intrusions delayed paychecks, rerouted invoices, stole sensitive data, locked up entire networks, interrupted patient care, and strained already tight budgets at schools and critical services. 

Those attacks were powered by Tycoon 2FA. Today, Microsoft, Europol, and industry partners announced a coordinated action to disrupt the service responsible for tens of millions of fraudulent emails reaching over 500,000 organizations each month worldwide. 

Disrupting a global phishing operation 

Active since at least 2023, Tycoon 2FA enabled thousands of cybercriminals to impersonate real users and gain unauthorized access to email and online service accounts, including Microsoft 365, Outlook, and Gmail. Unlike traditional phishing kits, Tycoon 2FA was designed to defeat additional security protections, including multifactor authentication, allowing cybercriminals to log in as legitimate users without triggering alerts, even on protected accounts. 

Acting under a court order from the U.S. District Court for the Southern District of New York, and for the first time in coordination with Europol’s Cyber Intelligence Extension Programme (CIEP), Microsoft seized 330 active domains that powered Tycoon 2FA’s core infrastructure, including control panels and fraudulent login pages. The CIEP framework brought public and privatesector partners together to move from simply sharing intelligence to coordinated, crossborder action, accelerating disruption and limiting further harm. 

Taking this infrastructure offline cuts off a major pipeline for account takeovers and helps protect people and organizations from followon attacks such as data theft, ransomware, business email compromise, and financial fraud. 

The scale and realworld impact of Tycoon 2FA 

By mid2025, Tycoon 2FA accounted for approximately 62 percent of all phishing attempts Microsoft blocked, including more than 30 million emails in a single month. That placed Tycoon 2FA among the largest phishing operations globally.  

Despite extensive defenses, the service is linked to an estimated 96,000 distinct phishing victims worldwide since 2023, including more than 55,000 Microsoft customers.  

Healthcare and education organizations were hit hardest. More than 100 members of HealthISAC, a global threat-sharing group for the health sector and a co-plaintiff in this case, were successfully phished. In New York alone, at least two hospitals, six municipal schools, and three universities faced attempted or successful compromise through Tycoon 2FA. These incidents had tangible consequences: disrupted operations, diverted resources, and delayed patient care.  

Why Tycoon 2FA was so dangerous 

Tycoon 2FA combined convincing phishing templates, realistic landing pages, and realtime capture of credentials and authentication codes into an easytouse package that scaled quickly. By lowering the technical barrier to entry, it allowed criminals with limited expertise to run sophisticated impersonation campaigns. 

With each successful phishing victim, attackers could operate with the same level of trust as legitimate users moving laterally across systems, accessing sensitive data, and abusing signon connections without raising alarms. Research from Microsoft Threat Intelligence provides more details on how Tycoon 2FA operated. 

Dark‑themed admin dashboard showing security and login activity. At the top are summary cards for Total Visits (5), Valid (4), Invalid (2), and SSO (0). The center includes a donut chart comparing valid, invalid, and SSO logins, a bar chart of login websites with Microsoft highlighted, and a world map labeled “Visitors by Country.” Below, a table lists valid accounts with columns for email, website, browser, IP, country, 2FA status, and date, with action buttons such as “Copy Zip Pass” and “Download.”
The Tycoon 2FA customer dashboard.

This shift reflects a broader trend in cybercrime: identity, not infrastructure, has become the primary target. A single compromised account can now unlock banking systems, healthcare portals, workplace applications, and social media accounts. 

Inside the impersonation economy

Tycoon 2FA operated like a business within the broader impersonationforhire ecosystem. The primary developer, Saad Fridi, who is believed to be based in Pakistan, worked alongside partners responsible for marketing, payments, and technical support. 

Cybercriminals typically used Tycoon 2FA alongside other illicit services. While Tycoon 2FA captured credentials and session tokens, other services handled mass email delivery, malware distribution, hosting, and access monetization. For example, RedVDS, disrupted by Microsoft in January 2026, provided inexpensive virtual computers, which cybercriminals paired with Tycoon 2FA to deliver phishing campaigns. Together, these different services created an interconnected ecosystem for identitybased attacks. Disrupting one component can have cascading effects across the cybercrime economy. 

Sustained pressure reshapes the market 

Over the past 18 months, Microsoft’s Digital Crimes Unit has targeted multiple services that enable impersonation and initial access, including extensive disruption operations of Lumma StealerRaccoonO365Fake ONNX (aka “Caffeine”), and RedVDS. 

When widely used tools are disrupted, attackers are forced to adapt, often shifting to alternatives like Tycoon 2FA. This substitution pattern shows how sustained pressure prevents any single service from remaining dominant while steadily raising the cost and risk of cybercrime. 

These efforts have led to arrests in Egypt and Nigeria, complete service shutdowns, infrastructure loss, and reputational damage for operators beyond lawenforcement reach. RedVDS alone lost more than 95 percent of its infrastructure since January 2026, significantly degrading its ability to support mass impersonation campaigns and other online scams. 

As pressure increased, many operators tightened access controls, retreated into closed channels, or shut down entirely to avoid legal action. In Tycoon 2FA’s case, Microsoft could not purchase access to the service; the operator rejected attempts by our investigators, requiring a trusted intermediary. In fact, Tycoon 2FA’s operator and the nowarrested developer of RaccoonO365 communicated with one another, highlighting the ecosystem’s interdependence and how disruptions in one area influence activity elsewhere. 

Screenshot of a dark‑mode chat conversation interface. Multiple message bubbles discuss “2FA/MFA” services, with usernames such as “Raccoon0365,” “ItsPump,” and others visible. Messages reference choosing or not choosing a provider, friendship between groups, and competition between services. Timestamps appear next to messages, and emoji reactions are included.
Correspondence suggesting interactions between the operators of RaccoonO365 and Tycoon 2FA.

Global threats require global action 

Cybercrime operates across borders, and effective response must do the same. Disrupting Tycoon 2FA spanned multiple jurisdictions, underscoring why sustained, coordinated pressure is essential, especially as cybercrime becomes more scalable through automation and AI. 

Microsoft Threat Intelligence, joining many security researchers, identified Tycoon 2FA as one of the most significant threats to identity-based attacks. Microsoft’s Digital Crimes Unit consulted with Europol, which also tracked the actor based on intelligence supplied by TrendAI. Through the CIEP, Europol convened partners to take action. Microsoft worked with industry partners to pursue a coordinated infrastructure disruption, while law enforcement authorities in Latvia, Lithuania, Portugal, Poland, Spain, and the United Kingdom conducted seizures of infrastructure and carried out other operational measures linked to Tycoon 2FA. 

Industry partners, including ProofpointIntel 471, and eSentire, expanded visibility through telemetry, threat intelligence, and criminalforum insight. Cloudflare assisted by taking down infrastructure outside U.S. jurisdiction, while HealthISAC quantified impacts on healthcare organizations. SpyCloud contributed key victimology data, Resecurity facilitated access to Tycoon 2FA, and Coinbase helped trace the movement of stolen funds. Finally, the Shadowserver Foundation supported notifications to more than 200 computer emergency response teams worldwide, helping limit further harm. 

No single organization could have assembled this full picture alone.

Splash page appearing on seized domains.

Sustaining pressure, together 

Stopping identitybased cybercrime requires action across individuals, organizations, and governments. Multifactor authentication, scrutiny of unexpected messages, strong session controls, and coordinated threatsharing all reduce risk. Early enforcement matters tooit prevents small intrusions from escalating into systemic harm. Microsoft will continue applying the lessons learned from Tycoon 2FA and prior disruptions to fragment the impersonation economy, limit scale, and make cybercrime riskier and less profitable. 

The post Defending the gates: How a global coalition disrupted Tycoon 2FA, a major driver of initial access and large-scale online impersonation appeared first on Microsoft On the Issues.

Building an AI-Ready America: Teaching in the AI age

On Tuesday, February 23rd, Microsoft Senior Director of Education and Workforce Policy Allyson Knox testified before the House Education & Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education. To view the proceedings, visit the committee’s website.

STATEMENT OF ALLYSON KNOX

SENIOR DIRECTOR OF EDUCATION AND WORKFORCE POLICY

MICROSOFT CORPORATION

BEFORE THE

EDUCATION AND WORKFORCE COMMITTEE

SUBCOMMITTEE ON EARLY CHILDHOOD, ELEMENTARY, AND SECONDARY EDUCATION

UNITED STATES HOUSE OF REPRESENTATIVES

“BUILDING AN AI-READY AMERICA: TEACHING IN THE AI AGE”

TUESDAY, FEBRUARY 24, 2026

WASHINGTON, D.C.

Good afternoon and thank you, Chairman Kiley, Ranking Member Bonamici, Members of the Subcommittee for inviting me to testify today. My name is Allyson Knox. I am Senior Director of Education and Workforce Policy at Microsoft, and I am pleased to have this opportunity to discuss issues related to artificial intelligence and its impact on teachers.

Today, I will share insights we have gathered from teachers about their experiences, challenges, and needs as they integrate AI in education; outline the steps Microsoft and other organizations are taking to facilitate this transition; and recommend legislative approaches to help policymakers strengthen these efforts. These legislative approaches include supporting professional development for teachers; encouraging public-private partnerships; promoting AI literacy; providing guidance on responsible AI use; and supporting innovation.

I would like to begin by quoting from Microsoft’s vice-chair and president, Brad Smith, in his recent foreword to Degrees of Change: What AI Means for Education and the Next Generation[i]:

“Generative AI has become the fastest-spreading technology in human history, adopted at a pace that even the most seasoned technologists could scarcely imagine. This speed is breathtaking, but it also compels us to pause and ask, “Are we ready for what comes next?” AI’s promise is extraordinary. It can help solve problems that have challenged humanity for decades—improving health outcomes, advancing education, and unlocking new opportunities for economic growth. But, like every transformative technology before it, AI brings new questions and new responsibilities.”

This thought-provoking quote is apt for today’s conversation on how AI is impacting teachers. The speed of AI adoption in our nation’s schools and classrooms is indeed breathtaking. Just three years ago, AI had barely made a mark in education. However, our 2025 Study on AI in Education found that 80% of U.S. K-12 teachers have used AI in their roles or for school-related purposes at least once or twice and one-fifth report daily use of AI. Additionally, 58% of K-12 teachers think AI usage at their school/district will increase in the next year.[ii]

What we are hearing from teachers on the impact of AI:

The breadth of adoption has been profound. We have heard directly from teachers who are using AI to streamline lesson planning, curriculum development, and personalize student learning in ways that were unimaginable a few years ago.[iii] AI is also reducing the time it takes to carry out administrative tasks, allowing more time for teachers to focus on their students.

Despite these benefits, we know teachers face challenges when it comes to AI in the classroom. We found roughly one in three teachers lack confidence in using AI effectively and responsibly. Many teachers also express concerns about how AI can exacerbate cheating and are worried about issues such as data privacy and student safety.

Teachers know AI is here to stay, and based upon countless surveys, forums, and focus groups, teachers are ready to tackle these challenges and ask for support in three main areas:

  1. AI literacy – Teachers want the skills, knowledge, and support to build AI literacy and critical thinking in their students;
  2. AI guardrails – Teachers want students to use AI responsibly and safely; and
  3. AI tools – Teachers want classroom-ready AI tools and opportunities to provide feedback that improve them.

I’m excited to share a few ways Microsoft, along with many of our partners, are committed to providing teachers with the support they are requesting.

1.AI literacy – Teachers want the skills, knowledge, and support to build AI literacy and critical thinking in their students

At the core of this support is listening to and learning from teachers and understanding what they want and need to become AI literate themselves and teach AI literacy to their students. These conversations have resulted in exciting initiatives, including the recent launch of the Microsoft Elevate for teachers program, part of the company’s broader commitment[iii] to help schools and educators build skills, expand opportunities, and ensure everyone benefits from AI.

Microsoft Elevate for Educators

The Microsoft Elevate for Educators program equips educators and school leaders with access to one of the world’s largest and most connected peer educator networks and offers free professional development resources. It will provide free access to a new industry-recognized credential for educators, developed in partnership with one of the leading national nonprofit focused on technology and innovation (ISTE+ASCD).[vi] This partnership is aligned to the AI Literacy Framework, which is intended to help educators gain confidence and expertise in integrating AI into their teaching and learning. As part of this work, we also support ISTE+ASCD in advancing AI in teacher preparation programs.

National Academy for AI Instruction

Along with OpenAI and Anthropic, we are supporting the National Academy for AI Instruction, through a partnership with the American Federation of Teachers and the United Federation of Teachers. The Academy describes itself as a national training hub designed by educators – shaping the future of AI in public education, grounded in safety and people-first technology, and improving student learning. From everything we have heard from teachers, this is exactly the type of support they need to promote AI literacy. The Academy also focuses on building critical thinking skills for students and educators.

Rob Weil, who heads up the Academy, recently shared an update on their work with me. He noted through direct engagement with teachers, they listen to what the primary concerns teachers have around using AI in the classroom are, and then work with them to design trainings that are directly responsive to their concerns and meet them where they are – including using whatever technology they are already using in their classroom.

Their goal is to train 400,000 teachers over the next 5 years. The Academy is centered around a “train the trainer” model, building capacity to provide AI literacy to teachers at scale – providing the potential of millions of teachers to benefit from this initiative. Weil noted that interest and participation in the Academy has been taking off, largely due to word of mouth. This month, 1,000 teachers showed up for a virtual session, and another in-person session was overprescribed had to turn away a hundred interested teachers.

Why the interest? Teachers want to learn from their peers and trusted partners; they also want to ensure they are using AI effectively and safely. Weil explained that one of the most popular aspects of the training is centered around the Academy’s Commonsense Guardrails for Using Advanced Technology in Schools,[v] which helps empower teachers to address the challenges they are facing in implementing AI. Some teachers describe AI as the wild-wild west, and this guide has helped provide a roadmap for understanding how to navigate bringing this technology into the classroom.

The trainings also provide real-world, hands-on experiences with using technology which teachers themselves are bringing to the table. At the trainings, teachers are asked what they could use the most help with and then have time to experiment with different tools to do things like start a draft of a lesson plan or an outline for a rubric – allowing them more time and flexibility to incorporate their expertise. In addition, the Academy creates opportunities for educators to influence the development of AI for schools.

Support for Special Education Teachers

We also recognize the potential that AI holds to support students with disabilities – and the need to ensure special education teachers have the support and resources to fully unlock this technology.

Recently, we launched a course to support educators in exploring how Microsoft AI tools can be thoughtfully used in special education environments to reduce administrative demands, strengthen accessibility, and support clear communication with families. Throughout the learning path, responsible use of AI, privacy, and transparency are emphasized so educators can determine when and how AI fits into their practice in ways that align with student needs and professional values.

After our engagements, we tailored our trainings to special education teachers by incorporating their direct feedback. Key topics included privacy with sensitive medical information and using AI to assist parents and caregivers in IEP meetings. We emphasized clear communication, parental inclusion, and ensuring parents understand the meeting’s goals and how best to support their children.

Finally, special education involves a collaborative team beyond just teachers, and we’ve revised our approach to address the needs of occupational therapists, physical therapists, and all other members involved in special education.

Support for Teachers in Rural America

We have found there’s a significant gap in daily AI usage by urban teachers versus their rural and suburban counterparts (39% vs. 24%).[iv] This gap underscores why ensuring AI tools, resources, and professional development are attuned to the needs of rural teachers is critical.

For the last five years, we’ve been working with the National Future Farmers of America (FFA) and agricultural science teachers to develop FarmBeats for Students and ensure it is responsive to agricultural science teachers’ needs. We engaged in an iterative process with them – collaboratively designing and building curriculum and training with agricultural science teachers from the very beginning of development.

FarmBeats for Students brings AI to agricultural education through a hands-on educational program that brings precision agriculture directly into the classroom. The program consists of an affordable hardware kit and a free curriculum aligned with rigorous educational standards. Activities give students direct experience with topics like digital sensors, data analysis, and AI.

We brought FarmBeats for Students to the National FFA convention and held a series of workshops with teachers across the country. They experimented with the kits and provided input to ensure this technology was directly responsive to what they wanted to see in the classroom.

In addition to our partnership with the National FFA, Microsoft helps meet the needs of rural teachers by deploying the online content referenced above through Elevate, as well as supporting community-based organizations that help facilitate activities and events which promote AI literacy in rural communities.

AI Literacy Frameworks, Standards, and Guidance

Teachers want frameworks that help them integrate AI into their classrooms. We are pleased there is bipartisan interest in establishing strong frameworks around AI and education, especially highlighting the need for widespread AI literacy. Microsoft has provided support, guidance, and input to organizations and initiatives such as Code.org and TeachAI who work to develop and promote frameworks, guidance, and standards.

Microsoft encourages state and local policymakers to review and leverage these resources as they incorporate AI in education:

  • The TeachAI Foundational Policies[vii]: This resource, endorsed by dozens of policy organizations and associations, provides practical guidance for national, state, and local leaders to harness AI’s benefits in teaching and learning while mitigating risks. The policies focus on five priorities—fostering leadership, promoting AI literacy, providing clear guidance, building educator capacity, and supporting responsible innovation—to ensure AI strengthens education systems and prepares learners for an AI‑enabled workforce.
  • The TeachAI AI Guidance for Schools Toolkit[viii]: The Toolkit helps education authorities, school leaders, and educators develop clear, responsible guidance for using AI in K–12 education, balancing potential benefits with risks such as privacy, bias, and academic integrity. It provides a practical framework, principles, sample policies, and communication templates to support safe and human‑centered AI adoption across school systems. The Toolkit has been used by the majority of states in constructing guidance for schools.
  • The AI Literacy Framework[ix]: The AI Literacy Framework defines the knowledge, skills, and attitudes students and educators need to understand, use, and critically evaluate AI in education. It is organized around four core domains—Engaging with AI, Creating with AI, Managing AI, and Designing AI—and emphasizes critical thinking, ethics, and human judgment alongside technical understanding. It also emphasizes the foundational computer science concepts that prepare students to not just use AI but understand how AI works and its societal impacts. The framework is designed to be interdisciplinary, practical, and durable, helping schools integrate AI literacy into curriculum, professional learning, and policy in age‑appropriate ways.

2.AI guardrails – Teachers want students to use AI responsibly and safely

We have heard from teachers that one of the greatest hesitations they have with AI is around safety for students. This includes ensuring AI tools used in the classroom protect student privacy, don’t collect their information, and are safe from a mental health perspective.

Some of the strategies teachers use to promote safety are a significant focus in the professional development referenced earlier. In addition, the frameworks include key components to help teachers understand responsible AI use.

Microsoft takes our responsibility as a developer and deployer of AI technology very seriously. Paramount to deploying this technology in classrooms is ensuring it is responsible. Microsoft has identified six principles that we believe should guide AI development and use.

  • Fairness: AI systems should treat all people fairly.
  • Reliability and Safety: AI systems should perform reliably and safely.
  • Privacy and Security: AI systems should be secure and respect privacy.
  • Inclusiveness: AI systems should empower everyone and engage all people.
  • Transparency: AI systems should be understandable.
  • Accountability: People should be accountable for AI systems.

These principles are the foundation for other tools and resources we share with teachers to provide guidelines for them to deploy AI in the classroom.

As another example of our commitment to safety, earlier this month, on Safer Internet Day, we launched our new Microsoft Education Security Toolkit,[x] which provides educators and IT teams with practical guidance tailored to the realities of modern education.

3. AI tools Teachers want classroom-ready AI tools and opportunities to provide feedback that improve them

Teachers often lack the right AI tools tailored to their needs for boosting student achievement. It’s essential to develop AI solutions based on teacher input rather than just delivering generic options. Microsoft strives to meet this responsibility by designing tools and partnerships that address educators’ needs. We believe this approach creates a critical feedback loop that will allow us to constantly evolve our tools to maximize their benefit in the classroom over time.

In fact, at Microsoft, our engineering teams collaborate closely with educators and students to advance the development of AI tools for classroom use. We partner with teacher organizations and directly engage with the disability community to better understand instructional requirements and design technology that enhance student learning outcomes.  Some examples include:

Reading Progress

One of the tools we offer to teachers is called Reading Progress, which helps teachers analyze students’ fluency and generates reading passages and comprehension questions.

From the beginning of development, we worked with individual teachers through our Educator Insiders program and with entire schools or districts through our Technology Adoption Preview, where educators test prototypes of our products and provide feedback.

For example, teachers asked for a tool that could generate tailored passages to meet the needs of their students. We incorporated that feedback and now, teachers can get as specific as saying they want a passage generated about sports that is for a third-grade reading level and includes specific words their class is learning.

Teachers also told us they wanted reading comprehension questions generated faster and better. With AI, it’s easy to do this in a high-quality way.

Teachers report increased comprehension, higher reading fluency, and higher scores, especially for struggling or reluctant readers.

Teach for America (TFA)

Microsoft has been a proud supporter of TFA’s efforts to improve the education system and expand opportunities for children across the U.S. It has been great to see all of the ways in which TFA has worked to equip their teachers with AI fluency in order to help them integrate this technology into the classroom.

TFA recently completed a cloud migration to Microsoft Azure, unlocking countless avenues to improve program design and delivery, direct the most possible funds toward its mission to ensure all kids have access to an excellent education, and evolve to offer the best learning options inside and outside the classroom.

Where do we go from here

What is both exciting and daunting about AI is that while we can take lessons learned from previous technological transformations in the classroom, much of the book has not been written on AI adoption. Meaning tech companies, teachers, government, and other stakeholders have the opportunity to shape where AI goes in education and beyond.

I want to conclude my remarks today with policy recommendations for the Committee to consider:

  • Support professional development for teachers to effectively teach about AI and responsibly integrate AI tools in the classroom.
    • At the Federal level, this means providing priorities for competitive grant programs, such as those recently proposed by the U.S. Department of Education.
  • Encourage public-private partnerships.
    • Incentivize and prioritize Federal funds and grants that support partnerships between technology companies and educational programs, including apprenticeship and credentialed organizations, to develop up to-date AI curriculum.
  • Promote AI literacy across the U.S.
    • Integrate AI skills and concepts, including their foundational principles, social impacts, and ethical concerns, into existing curriculum and instruction.
  • Provide guidance.
    • Equip schools with guidance on the safe, effective, and responsible use of AI, including considerations related to student privacy, data security, accessibility, transparency, and appropriate human oversight.
  • Invest in innovation.
    • Support research and evaluation to better understand the impacts of AI in education, including its effects on teaching and learning and student outcomes, and to identify effective, scalable practices that mitigate the digital divide.

 

[i] Smith, Brad. “Foreword.” Degrees of Change: What AI Means for Education and the Next Generation, by Juan M. Lavista Ferres, John Wiley & Sons, 2026.
[ii] See Microsoft 2025 AI in Education Survey Details, August 2025
[iii] See Microsoft 2025 AI in Education Survey Details, August 2025
[iv] See Microsoft Elevate: Putting people first, July 2025
[v] See Commonsense Guardrails for Using Advanced Technology in Schools, March 2025
[vi] See Microsoft 2025 AI in Education Survey Details, August 2025
[vii] See TeachAI Foundational Policies
[viii] See TeachAI AI Guidance for Schools Toolkit
[ix] See AI Literacy Framework
[x] See Microsoft Education Security Toolkit, February 2026

[1] ISTE (International Society for Technology in Education) + ASCD (Association for Supervision and Curriculum Development)

 

The post Building an AI-Ready America: Teaching in the AI age appeared first on Microsoft On the Issues.

Celebrating 250 million: Empowering communities to enable the global AI economy

24 February 2026 at 15:02

Ahead of Mobile World Congress, where global leaders, governments, and industry convene at the world’s largest connectivity event, Microsoft is marking a major milestone in our efforts to expand digital access worldwide. In 2022, we made a bold commitment to expand internet access to 250 million people by the end of 2025. Today, we are proud to share that we have met and exceeded that goal, extending connectivity coverage to over 299 million people worldwide, including more than 124 million across Africa.

This milestone represents more than a number. It reflects more than a decade of sustained collaboration with governments, nonprofits, local connectivity providers, and development partners around the world. Together, we have worked to reach communities where access has historically been limited, building pathways to education, healthcare, economic opportunity, and digital participation.

Reaching this milestone is also a moment of reflection and renewal. Building on years of progress, Microsoft is evolving its approach to digital access to focus not only on coverage, but on adoption, enablement, and long-term participation in the AI economy.

As part of this next chapter, we are announcing a new collaboration with Starlink. This collaboration expands the set of tools available to help deliver digital access in rural, agricultural, and hard-to-reach communities. Combined with local delivery partners and community institutions, it strengthens the foundation for AI-ready communities around the world.

Why digital access matters in the AI era

Despite continued progress, 2.2 billion people globally remain offline, and many more face barriers related to affordability, reliability, or access to relevant digital services. These gaps already limit opportunity and risk widening as AI becomes more central to how economies grow and societies function.

At Mobile World Congress 2024, Microsoft Vice Chair and President Brad Smith shared our AI Access Principles, underscoring that electricity and connectivity are essential foundations for an inclusive AI economy. Since then, the pace of change has only accelerated. In fact, Microsoft’s 2025 AI Diffusion Report shows that AI is being adopted faster than any general-purpose technology in history, yet adoption remains uneven. As the data illustrates, adoption in the Global North is accelerating faster than in the Global South. Differences in infrastructure, access to tools, and digital readiness all contribute to a growing divide between higher-income and lower-income economies.

This graphic from the 2025 AI Diffusion Report reinforces a clear insight: access to AI alone is not enough. For communities to participate meaningfully in the digital and AI era, connectivity must be paired with reliable energy, affordable devices, digital skills, and technologies designed for real-world use. Where these conditions exist, adoption follows. In Zambia, for example, country-wide generative AI adoption is 12 percent, but among those with internet access, it rises to 34 percent.

Deepening Microsoft’s approach to digital access

Building on what we have learned, Microsoft is advancing a more holistic digital access model that recognizes connectivity as only one part of a broader system. In practice, this means collaboration to deliver not only internet access but also more reliable energy infrastructure, access to water where relevant, devices, digital skills, and cloud and AI tools, all designed and deployed for the communities they serve. By working across organizations and governments to address these foundational needs in parallel, this approach helps ensure that digital access is usable, durable, and capable of supporting real-world outcomes.

A central focus of this work is community-based access models that are financially sustainable, scalable, and aligned with national development priorities. These models bring together local institutions such as schools, health facilities, cooperatives, and community hubs and are implemented in partnership with governments, businesses, nonprofits, and development finance organizations. By integrating infrastructure, enablement, and financing from the outset, these holistic programs can help unlock long-term investment, support responsible growth, and enable communities to fully participate in the digital and AI economy.

Digital access directly complements Microsoft’s Community First AI Infrastructure approach by providing the foundation that enables AI to be adopted, used, and trusted by communities everywhere.

Partnering to deliver impact at scale

Progress at this scale is only possible through strong partnerships rooted in local delivery, community trust, and long-term sustainability. Microsoft’s work to extend connectivity to more than 299 million people has been built alongside partners who understand the realities of last-mile deployment and digital adoption.

In Africa, Microsoft works with partners such as Cassava Technologies to expand regional digital infrastructure and drive high-quality internet access across South Africa, Malawi, Kenya, and Zambia. Collaborations with local providers like Tizeti deliver affordable, reliable connectivity through solar-powered Wi-Fi networks across Nigeria and Ghana.

In Latin America, Microsoft’s partnership with Anditel focuses on expanding internet and energy access for rural and agrarian communities in Colombia through locally led models aligned with national priorities. In India, Microsoft works with AirJaldi to pair affordable connectivity with digital skills training and practical pathways for use, helping communities move beyond basic access toward meaningful adoption.

These partnerships made reaching the 250 million milestone possible. They also reflect a principle that continues to guide our work. Lasting digital access is built with communities, not for them.

Expanding the portfolio: Collaboration with Starlink

Building on this foundation, Microsoft continues to expand and diversify its portfolio to reach communities where traditional infrastructure alone cannot meet demand.

Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships. This is intended to expand the set of tools available to deliver digital access while remaining firmly embedded in a holistic, partnership-driven approach.

Kenya offers an early example of this model in practice. Working with Starlink and local internet service provider Mawingu Networks, Microsoft is supporting connectivity for 450 community hubs across rural and underserved regions, including farmer cooperatives, aggregation centers, and digital hubs. These deployments combine satellite connectivity with digital skills, tools, and ecosystem coordination to support agricultural productivity, access to markets, and adoption of digital and AI-enabled services.

Beyond 250 million: Building AI-ready communities

Surpassing the 250 million connectivity milestone is a moment to celebrate. It is also a starting point for what comes next.

The next chapter of Microsoft’s digital access work is planned to focus on ensuring that access translates into adoption, use, and long-term opportunity. By continuing to partner with governments, development finance institutions, nonprofits, and private-sector partners, and by expanding into energy access, financing mechanisms, and community-first AI solutions, Microsoft is working to ensure that everyone, everywhere, can participate in the digital and AI economy.

 

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