Microsoft Secures Big Win by Hiring Ousted OpenAI CEO

Microsoft emerges as the big winner by hiring ousted OpenAI CEO Sam Altman and key staff, solidifying its lead in the AI race.

Microsoft’s Strategic Move

Microsoft has emerged as the big winner after hiring ousted OpenAI CEO Sam Altman and other key staff from the startup in a strategic move to solidify its lead in the artificial intelligence race. The decision was prompted by the upheaval at OpenAI, which had raised concerns about the fallout for Microsoft’s significant investments in the company and its reliance on OpenAI’s technology for its AI offerings.

Impact on Microsoft’s Market Value

Following the move, Microsoft’s shares rose about 1.5%, adding nearly $30 billion to its market value at current levels. This increase almost equaled the valuation OpenAI commanded in its last fundraise, showcasing the significant impact of the acquisition of Altman and other key staff.

Analysis and Employee Reactions

Analysts view Microsoft’s position as strengthened by securing Altman and other talents, preventing the risk of them joining rival tech companies. The hiring of Altman, along with his team, at Microsoft is expected to deepen the company’s AI capabilities and access to necessary computing power. Meanwhile, there are indications that more OpenAI employees may consider joining Microsoft as the turmoil at OpenAI could impact the expected share sale and staff payouts at the startup.

Potential Benefits for Microsoft

The move by Microsoft to bring in Altman and his team is expected to provide the company with more access to computing power, which is crucial for AI development. Microsoft’s strong position as the second-largest cloud player in the U.S. and its substantial investment in datacenter capacity are likely to support the new research team’s endeavors and their access to intellectual property for future products.