On Monday, Microsoft declared that the former chief executive of OpenAI will join the company to lead the company ‘s department of innovation in Artificial Intelligence. After this news, the Microsoft stocks hit a new record.
On this Monday, the shares of Microsoft fell 1.7% when the news of expelling the OpenAI chief executive Sam Altman from his position. Microsoft has invested billions into OpenAI. They are the biggest stakeholder of Artificial Intelligence with more than 13 billion dollars investment in the company. Microsoft reports that they have 49% of company shares.
Greg Brockman, who is the co-founder of Open AI, also quit right after the firing of Altman. Now both, Sam Altman and Greg Brockman joined Microsoft as the heads of the Advanced AI research unit.
After his dramatic firing from OpenAI, it was speculated that he will come back to his former position at OpenAI, but the hiring of his at Microsoft ended this speculation.
Mira Murati, the chief technology officer at OpenAI, is replaced by the CEO of Twitch, Emmett Shear. Now he will act as the Interim Chief executive until a permanent replacement is found.
Microsoft shares have increased by 56% within the year. And this stock is considered one of the ‘Magnificent Seven’. A group of companies that have played a major role in driving most of the market’s overall returns this year.
This huge surge in stock is further fueled by the Wall Street Statement that Artificial Intelligence is the next significant thing in the technology industry.
A Technology Analyst at Wedbush Securities, Dan Ives also maintained his target price for Microsoft’s stock at $425. He also emphasized that the recent hiring of ex-CEO Sam Altman and Greg Brockman is one of the reasons that caused the huge rise in the stock. He said that “with Altman And Brockman, now we saw Microsoft in a stronger position from the perspective of AI.”
Other members of Magnificent seven also saw a boost on Monday. The market capitalization of Microsoft was $2.81 trillion on this Monday that makes it the 2nd largest company after Apple in the US according to the market cap.
The shares of Microsoft also made a new record at the start of this month during the latest development in the AI field like, the introduction of new AI chips and Copilot features.