Microsoft (NASDAQ:MSFT) stock is trending on social media today after the company hired OpenAI founder and former CEO Sam Altman. The move came after Altman was ousted by OpenAI’s Board of Directors. OpenAI launched and owns ChatGPT, the well-known artificial intelligence (AI) chatbot.
OpenAI’s board decided to dismiss Altman on Friday and hire Emmett Shear in his place, who had once served as the CEO of Twitch, the livestreaming platform owned by Amazon (NASDAQ:AMZN). According to Bloomberg, Shear was picked by the board due to his “past recognition of the existential threats that AI presented, a person familiar with the matter said.”
MSFT Stock: An Adventurous Few Days for Sam Altman
Over the weekend, Microsoft — which has invested over $10 billion in OpenAI — recruited Altman to head its AI research operations. Greg Brockman, another former OpenAI executive who resigned over the weekend, will also help run the research unit.
Microsoft CEO Satya Nadella says that the software giant will provide the AI research division “space” to create and innovate with its own style and methods. According to one of Brockman’s posts on X, the platform formerly known as Twitter, several other top OpenAI employees will join the Microsoft AI unit as well.
Before helping found OpenAI in 2015, Altman served as the President of Y Combinator, which successfully helped startups like Airbnb (NASDAQ:ABNB), Reddit and others get on their feet.
The Future of OpenAI
As of late September, OpenAI was reportedly in talks to sell shares of itself to investors in a deal that would value the company at between $80 billion and $90 billion. Under the potential transaction, employees of the firm would also be able to sell their own shares to investors.
Because Microsoft has invested more than $10 billion in OpenAI, the two firms are likely to continue to work together closely going forward.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
