The entire Silicon Valley took a dramatic break when Sam Altman, the former CEO of Open AI, resigned from his position. This impromptu decision by the board of OpenAI shook the entire tech space. However, the tale took a dramatic turn when Microsoft signed him, and its shares went past the roof.
The shares of Microsoft created the all-time best intraday and climbed almost 2%. This sudden increase added approximately $54 billion to the market value of Microsoft in a single day, which helped the company reach a market cap of $2.81 trillion. The result came after the official statement by Satya Nadella, CEO of Microsoft. He wrote to X, “We're extremely excited to share the news that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team.”
Sam Altman, in response, added “The Mission Continuous”, which sparked the expectations of investors, and as a result, Microsoft’s shares skyrocketed.
The hiring of Sam Altman is not only beneficial to Microsoft but to the entire tech industry in the USA. Microsoft has invested heavily in AI but, till now, has been unable to break the space. With the signing of Sam Altman, the US could see major technological advancements from Microsoft in the coming years.
For those of you who don’t know, Sam Altman is not just the former CEO of Open AI (the company that created ChatGPT) but also the leader of the AI revolution that scared every expert initially. He is the unbeaten founder of AI content creation. Apart from that, he also developed DALL-E, which is a tool that produces images with only prompts such as keywords or text. Altman is also responsible for the success of ChatGPT, which attracted over 100 million users in just two months.
Why is Microsoft hiring Sam Altman a big deal?
This was not the first time Microsoft’s share reached a new intraday high. Earlier this month, the shares of Microsoft reached a new high amid speculations of major AI advancements. In that case, signing the developer of ChatGPT gained investors' trust and created hype among the general public.
After the resignation of Altman, a large portion of OpenAI workers threatened to resign from the organization until and unless the board quit and reappoint Sam Altman. With such drama, there were heavy speculations that Microsoft may end up buying OpenAI completely.
As of now, OpenAI has filled the vacant CEO position with Emmett Shear (the former CEO of Twitch), despite the heavy criticism from the workers and investors.
The bottom line is that Microsoft secured its heavy investments in AI development by hiring Sam Altman while also adding specializations to its AI team. As of now, Microsoft’s future in AI development looks promising, while the same can’t be said for OpenAI.
Key Takeaways
- Microsoft hired Sam Altman, the former CEO of OpenAI, to lead its advanced research lab based on artificial intelligence.
- Microsoft’s shares jumped to an all-time high intraday, adding a whopping $54 billion to its market value.
- Microsoft gained the trust of Wall Street for its AI development projects.
Read ALSO:- Fed Officials Signal Potential Rate Hike, Skepticism Persists Among Market Participants
