It didn’t take former OpenAI CEO Sam Altman to land a new gig.
Microsoft Corporation (NASDAQ:MSFT), which has invested billions in OpenAI, has hired Altman to lead a newly created artificial intelligence research team, according to Microsoft CEO Satya Nadella.
In a post on X, Nadella confirmed that Altman, along with former OpenAI president Greg Brockman and others at the company, will join the team. Notably, Altman and Nadella appeared on stage together during the OpenAI developer day event earlier this month.
“We look forward to moving quickly to provide them with the resources needed for their success,” Nadella wrote.
We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners. We look forward to getting to know Emmett…
— Satya Nadella (@satyanadella) November 20, 2023
The shocking shakeup that saw OpenAI’s board part ways with Altman will not alter the company’s partnership with the ChatGPT developer, Nadella added.
“We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners.”
Altman shared Nadella’s post, adding the comment, “the mission continues.”
Meanwhile, there are hundreds of OpenAI employees who want to continue that mission — under Altman’s leadership. More than 500 of the company’s roughly 700 employees have signed a letter threatening to leave if the board doesn’t resign.
For Microsoft, the company made the savvy mood in keeping Altman within its ecosystem, analysts at Wedbush wrote.
“If Microsoft lost Altman he could have gone to Amazon, Google, Apple, or a host of other tech companies craving to get the face of AI globally in their doors,” the analysts wrote. “Instead he is safely in Microsoft's HQ now leading the company's key AI efforts which we expect many key scientists and developers to leave OpenAI and head directly to Microsoft.”
The firm continued to unload on OpenAI’s decision in a note to clients.
“In a nutshell, the JV four-person board at OpenAI was at the kids' poker table and thought they won until Nadella and Microsoft took this all over in a World Series of Poker move for the ages with the Valley and Wall Street watching with white knuckles ... We view Microsoft now even in a STRONGER position from an AI perspective with Altman and Brockman at MSFT running AI.”
Wedbush reiterated its Outperform rating and $425 price target. Shares of Microsoft rose 2.4% Monday afternoon to an all-time high of $378.61.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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