Following the announcement of Sam Altman’s appointment as the leader of Microsoft Corporation’s artificial intelligence innovation division, the company’s stock value surged on Monday and reached an all-time high. A 2.1% surge in Microsoft shares resulted from the hiring of Altman, the former CEO of OpenAI. The stock closed at a record $377.44, above the previous record of $376.17.
The market’s reaction followed Microsoft’s 1.7% decline on Friday, which also happened to be the day Altman was abruptly fired from OpenAI in a boardroom coup. At $13 billion, Microsoft is the largest shareholder in OpenAI and has a sizable stake in the company. Another person slated to join Microsoft is Greg Brockman, the co-founder of OpenAI who resigned following Altman’s firing.
The appointment of Altman put a stop to days of speculation about his possible comeback to the tech giant following his acrimonious ouster. Mira Murati will be replaced as interim CEO of OpenAI by Emmett Shear, the former CEO of Twitch, a streaming service owned by Amazon.
Microsoft’s stock has increased by 56% this year, which is an impressive achievement. As one of the “Magnificent Seven,” the company’s equities are accountable for a large amount of the market’s returns this year. Microsoft has an optimistic view in part because Wall Street has anticipated the increasing importance of artificial intelligence in the tech sector.
Dan Ives, a tech analyst at Wedbush Securities, maintained his $425 price target for Microsoft’s stock in the context of Altman’s and Brockman’s appointments. With Altman and Brockman on board, Ives underlined Microsoft’s stronger strategic stance in the field of artificial intelligence.
Positive market sentiment was also felt by other members of the “Magnificent Seven.” A record-breaking finish was achieved by the chipmaker Nvidia, a major player in the AI area, as it surged 2.3% to close at $504.20, just before its impending earnings announcement on Tuesday.
