Microsoft stock soared to a record high, reaching $377.44, a 2.1% increase, after the announcement that Sam Altman, former CEO of OpenAI, would join the company to lead its artificial intelligence (AI) innovation division. This surge came after a 1.7% decline in Microsoft stocks on Friday, coinciding with Altman’s removal from his position at OpenAI during a boardroom shakeup. Microsoft is the largest stakeholder in OpenAI, having invested $13 billion in the AI company.
Greg Brockman, a co-founder of OpenAI who resigned following Altman’s ousting, is also set to join Microsoft. Altman’s return to Microsoft was the subject of speculation in the days following his dramatic departure from OpenAI. The firing led to Emmett Shear, the former CEO of Twitch, taking over as interim CEO of OpenAI.
Microsoft stocks have experienced a 56% increase year-to-date, contributing to its status as one of the “Magnificent Seven” tech stocks that have driven a significant portion of the market’s returns this year. Wall Street’s optimism about the future of artificial intelligence in the tech industry has further fueled these gains.
Dan Ives, a tech analyst at Wedbush Securities, reaffirmed a $425 price target for Microsoft stock following Altman’s and Brockman’s appointments. Ives noted that Microsoft is now in a stronger position in the AI landscape, with Altman and Brockman joining the company.
Microsoft’s strategic move to leverage Altman’s expertise underscores the increasing significance of AI innovation in the tech sector. Altman’s leadership is expected to enhance Microsoft’s capabilities in this domain, aligning with the broader trend of companies prioritizing AI development as a key driver of future growth.
As the tech industry continues to evolve, the collaboration between seasoned leaders like Altman and established giants like Microsoft positions the company to make significant strides in the competitive landscape of artificial intelligence.
