Khosla had seen Microsoft’s announcement last year that it was winding down its free nonprofit licenses beginning July 2025, but, per the record, he should have still been in the clear. He renewed Canopy’s yearly license last October, and Microsoft had emailed him to confirm he would retain access until Oct. 4, 2026. Khosla had no reason to expect anything would change, and he received no additional warnings—even as Microsoft kept in regular touch about other software updates. And he later learned he wasn’t alone, when another company service representative called the very next day and told him that roughly 171,000 small nongovernmental organizations “lost everything” in their OneDrive accounts.

In a statement emailed to Slate, Microsoft wrote that the original offers were “retired to streamline our grant offerings and simplify our grant portfolio,” adding, “We strongly advised our nonprofit customers and partners to transition to a different Microsoft 365 offer for nonprofits before their renewal date to avoid disruption and data loss.”

As an IT person I can’t imagine just deleting customers’ data one day without keeping an archival copy. This feels like a mistake, in which case they’re being dishonest in order not to admit to their mistake. And if it wasn’t a mistake, it’s a sign that they aren’t competent at understanding their customers, making plans, or communicating. Either way, it shows Microsoft is not a company you can have confidence doing business with.