Microsoft’s stock reached a record high on Monday following the announcement that Sam Altman, former CEO of OpenAI, would be joining the company to lead its artificial intelligence (AI) innovation efforts. Microsoft’s shares rose 2.1% to a new all-time high of $377.44, surpassing the previous record of $376.17.
Altman’s move to Microsoft came after he was ousted from his position at OpenAI in a boardroom coup, leading to a 1.7% decline in Microsoft’s shares on the previous Friday. Microsoft is the largest stakeholder in OpenAI, with a $13 billion investment in the AI firm.
Greg Brockman, co-founder of OpenAI who left after Altman’s removal, is also set to join Microsoft. The hiring of Altman and Brockman follows days of speculation about Altman’s potential return to the company after his abrupt firing from OpenAI.
Microsoft’s shares have risen approximately 56% for the year, making it one of the “Magnificent Seven” stocks that have significantly contributed to the market’s overall returns in 2023. Analysts, including Dan Ives from Wedbush Securities, reiterated a positive outlook for Microsoft, with Ives maintaining a $425 price target for the stock. The addition of Altman and Brockman is seen as strengthening Microsoft’s position in the field of AI.