According to Decrypt, Microsoft shares increased by 1.5% on Monday following the announcement that the company had hired OpenAI founder Sam Altman to lead its new advanced AI research team. Altman was recently ousted as CEO of OpenAI, Inc., due to the board's concerns about his communication. Microsoft's stock closed at $369.67 on Friday and rose by $2.63 during pre-market trading, reaching $375.31 at the time of writing.
The leadership change at OpenAI led to Greg Brockman stepping down as chairman while continuing as president. Mira Murati was initially appointed as interim CEO but later joined 500 OpenAI employees in signing a letter accusing the board of mishandling Altman's departure. Twitch co-founder Emmett Shear has since been named interim CEO while the board conducts a formal search for a permanent hire.
Microsoft CEO Satya Nadella expressed the company's commitment to its partnership with OpenAI and excitement about Altman and Brockman joining the new AI venture. In related news, Nvidia shares rose 0.7% ahead of the market open and sustained that gain once trading began on Monday. The computer chip and graphics card designer has become a proxy for growing AI enthusiasm among investors, with its share price growing almost 200% in 2023.