The White House has often made extreme claims regarding international workers and immigration.
Microsoft and several other technology firms have been barred by the White House from hiring skilled international workers on a permanent basis through a widely used visa program.
Vice President JD Vance on Thursday accused Microsoft alongside other firms of committing fraud through the use of the H1b visa programme and a related process for workers from abroad to become permanent US residents.
Vance claimed that Microsoft, one of the most valuable in the US, has been effectively replacing American workers with "foreign indentured servants."
Microsoft said most of the H1b visas filed over the last financial year were for existing workers, who are paid the same as local staff.