In the latest development in the OpenAI/Sam Altman drama, Microsoft (MSFT) has announced its intention to hire Sam Altman as co-leader of its new advanced AI research team.
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OpenAI, the leader of generative artificial intelligence (AI) chatbots, has made the shocking decision to keep founder Sam Altman out of the CEO post. Instead, the board of directors chose the co-founder and ex-CEO of Twitch, Emmett Shear, as the interim CEO. OpenAI’s decision comes despite the opposition and outbursts from its major investors and employees, who have been urging the board to reinstate Altman. Further, Altman’s condition of dismantling the existing board on his return could have pushed the board to reject his reinstatement. The discussions and debates continued all over the weekend after Altman was fired late Friday night, November 17.
OpenAI’s chief scientist, Ilya Sutskever, who has been supposedly clashing with Altman, happily wrote an email to staff mentioning that Altman would not return. The ChatGPT maker has taken this unusual decision even after being aware that this would result in an employee exodus and the withdrawal of investor support, including the 49% stake owner (NASDAQ:MSFT). Mira Maruti, who was immediately installed as the interim chief on Altman’s ouster, also openly supported Altman’s return. This could have compelled the board to remove her from the critical position.
Microsoft Usurps Altman and Brockman
Microsoft took the leap of faith and leveraged the situation by instantly hiring both Altman and OpenAI President Greg Brockman, who also left the company on Friday. Both AI experts will be tasked with leading MSFT’s new advanced AI research team. The news was broken by CEO Satya Nadella on social media platform X, this morning. Nadella promised to provide them with all the required resources to work efficiently and successfully. At the same time, Nadella stated that the company will continue to know Shear more closely and work innovatively to “support our customers and partners.”
Interestingly, Altman was already threatening to start a new artificial intelligence (AI) venture in association with his OpenAI loyalists in case the negotiations with the firm fail. Brockman and a few other researchers instantly quit the company on Friday, following Altman’s departure, and were ready to join his new venture.
Will Microsoft Stock Go Up Because of OpenAI?
Under normal conditions and the continuance of Altman as OpenAI’s CEO, MSFT stock could have the possibility of going up. Even so, the recent brawl at the AI firm and disregard for Microsoft’s push to reinstate Altman could lead the tech giant to make some difficult decisions. Although Nadella has confirmed MSFT’s commitment to continue supporting OpenAI, only time will tell how the two will move past their differences. Year-to-date, MSFT stock has gained 55.8%.
Currently, MSFT has a Strong Buy consensus rating on TipRanks. This is based on 30 Buys and one Hold rating on the stock received before the news of Shear’s appointment. Also, the average Microsoft price forecast of $408.89 implies 10.6% upside potential from current levels.
