Microsoft’s Stock Hits Record High After Hiring Former OpenAI CEO

Microsoft made a significant move by recruiting OpenAI co-founders Sam Altman and Greg Brockman, causing a surge in Microsoft stock to reach a record high on Monday.

Nadella reiterated Microsoft's collaboration with OpenAI, the driving force behind the AI buzz with the introduction of ChatGPT last year. Microsoft holds a 49% stake in OpenAI, investing over $13 billion in the venture.

On Friday, OpenAI revealed the departure of CEO Altman, with the board expressing a 'lack of confidence' in his leadership. President Brockman and other employees resigned in response to this development.

Microsoft shares rose 2.1%, closing at 377.44, reaching an intraday peak of 378.87. Wall Street appears to agree that Microsoft has benefited from the recent upheaval at OpenAI.

OpenAI has appointed Emmett Shear, the former CEO of Twitch, as its second interim chief executive. Mira Murati, a longstanding OpenAI executive, initially assumed the interim role after Mr. Altman's departure.

Analysts view Microsoft's recent moves as positive, securing leadership from OpenAI while maintaining a continued partnership for utilizing OpenAI's technology in the short term.

Microsoft shares have surged approximately 56% this year, positioning the stock among the "Magnificent Seven" that have been driving a significant portion of the market's returns in the current year.