On Monday, Microsoft stock hit a record high on the announcement that Sam Altman, the former CEO of OpenAI, will lead the company’s artificial intelligence innovation division.
The software giant shares increased 2.1% on Monday to close at all-time high of $377.44, shattering the previous record of $376.17.
This comes after a boardroom coup resulted in Sam Altman’s resignation from OpenAI on Friday, which caused Microsoft stock to drop 1.7%.
With a $13 billion investment in the artificial intelligence startup, Microsoft is by far the largest shareholder.
Additionally joining Microsoft is Greg Brockman, who co-founded OpenAI but left after Sam Altman was fired.
Days of conjecture that the former CEO may rejoin the company following his abrupt termination came to a stop with Sam Altman hire.
Interim CEO Emmett Shear, a former CEO of Twitch, a streaming business owned by Amazon, will take over for OpenAI Chief Technology Officer Mira Murati.
This year, Microsoft stock has increased by around 56%.
The stock is one of the “Magnificent Seven” that, together with Wall Street’s bet that artificial intelligence will be the next big thing in technology, have driven the majority of the market’s returns this year.
After Altman and Brockman were hired, Wedbush Securities tech analyst Dan Ives reaffirmed his $425 price estimate for Microsoft’s stock.
