The U.S. Securities and Exchange Commission (SEC) is probing whether investors in Microsoft-backed OpenAI (NASDAQ:MSFT) were misled, according to the Wall Street Journal.
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Reportedly, the securities watchdog is scrutinizing the internal communications of OpenAI CEO Sam Altman. The investigation also involves internal records from both current and previous officials and directors of the startup. In November, OpenAI’s Board ousted Altman from the company, citing a “lack of candor” in his communications.
Subsequently, Altman returned as CEO after the company’s troops rallied to his support. Most recently, the company took the world by storm once again after unveiling its AI video generator, Sora.
OpenAI was last valued at a whopping $80 billion, with Microsoft holding about a 49% stake in the company. Microsoft, though, continues to make major moves in the tech world. Earlier this week, the tech giant partnered with Mistral AI. The latter is a key competitor for OpenAI in the European market. In December, Mistral was valued at about $2 billion, according to Bloomberg.
What Is the Price Target for Microsoft?
The buzz around AI has helped Microsoft stock defy gravity with a nearly 67% jump over the past year. Overall, the Street has a Strong Buy consensus rating on Microsoft, and the average MSFT price target of $470.02 points to a further 15.3% potential upside in the stock.
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