Microsoft shares rise after tech giant hires former OpenAI CEO Sam Altman

Investing.com -- Shares in Microsoft (NASDAQ:MSFT) ticked higher in early U.S. trading on Monday after the tech giant announced that it will hire Sam Altman just days after he was ousted from the helm of OpenAI.

In a post on social media platform X, Microsoft CEO Satya Nadella said Altman, one of the most prominent figures in the AI industry, will be brought on to lead a new advanced artificial intelligence research team. Nadella added that he is "look[ing] forward to moving quickly" to provide Altman and Greg Brockman -- who was also removed from his role as OpenAI president -- "with the resources needed for their success."

Earlier on Monday, The Information reported that Altman will no longer return as OpenAI's CEO despite executive efforts to rehire him. The report cited an internal address by co-founder and board director Ilya Sutskever.

Instead, OpenAI will hire streaming site Twitch co-founder Emmett Shear as interim CEO, according to media reports.

Altman was seen meeting with OpenAI’s board over the weekend, after he was unexpectedly sacked on Friday and replaced on an interim basis by Chief Technology Officer Mira Murati. The turmoil threatens to cast a pall over the future direction of OpenAI, which has been bolstered in recent months by heavy investment from Microsoft.

Analysts at Evercore ISI called the appointments of Altman and Brockman a "clear win for Microsoft" that "should should help offset concerns regarding potential near-term uncertainty at OpenAI."