AI Industry Rides High as Microsoft and Nvidia Stocks Soar; OpenAI Founders to Head Microsoft's New Division
Summary:
Following a turbulent weekend for the AI sector, Microsoft (MSFT) and Nvidia (NVDA) stocks reached all-time highs. The upheaval involved the dismissal of OpenAI CEO Sam Altman, who, along with co-founder Greg Brockman, was later drafted to lead a new AI division at Microsoft. This move sparked a surge in Microsoft shares. The AI sector experienced consistent growth in 2023, with notable companies like IBM and Tencent also exhibiting remarkable returns. Nvidia continued to dominate the AI training hardware market. Altman's future at Microsoft remains uncertain as OpenAI employees and investors push for his reinstatement as CEO.
Shares in Microsoft (MSFT) reached a record peak of $378.81 on November 20, following a volatile weekend in the AI industry that saw the removal of OpenAI CEO and co-founder Sam Altman. Keeping pace, Nvidia's (NVDA) shares also scaled an all-time high of $499.60, maintaining an upward trajectory from a one-year low of $138.84. Both stocks have seen soaring growth in recent years, driven by an AI boom fuelled by developments in deep learning and generative models, including OpenAI’s ChatGPT. Numerous market watchers attribute Microsoft's recent spike to the appointment of former OpenAI CEO, Sam Altman.
As reported by Cointelegraph, Altman was unexpectedly dismissed by OpenAI's board of directors on November 17. He was temporarily succeeded by Chief Technology Officer Mira Murati as interim CEO. However, Murati was soon replaced by former Twitch CEO and co-founder Emmett Shear. While this was unfolding, Altman and OpenAI co-founder Greg Brockman have reportedly agreed to lead a fresh AI division in Microsoft. This comes despite Microsoft, under the leadership of Satya Nadella, having already committed about $13 billion into OpenAI.
The announcement of this appointment sparked a surge in Microsoft's stock value, but this was just one highlight in a year of consistent growth for the sector throughout 2023. Company stocks in AI, including giants like Microsoft and Nvidia, names such as IBM and Tencent, have exhibited impressive returns. At the time this news was published, these stocks had climbed to five year and one month highs respectively.
Nvidia's record returns come as it fortifies its position as the preferred source for AI training hardware. Owing to dominance in the graphical processing units (GPUs) market, an essential component with consistently increasing demand, the company controls a significant market portion.
Whether the highs of November 20 will be surpassed, sustained or drop before the day's end is uncertain. Also unknown is Altman's standing at Microsoft. A majority of OpenAI employees have written an open letter insisting that the board reinstates their former CEO, declaring a readiness to stage a walkout. Meanwhile, a parallel narrative playing out involves OpenAI investors calling for Sam Altman to be reinstated as CEO.
Published At
11/20/2023 7:58:06 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.