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Former OpenAI CEO Sam Altman joined Microsoft (MSFT) on Monday morning, just days after he was ousted by OpenAI's board. So what does this move mean for investors, the future of AI technology, OpenAI, and Microsoft? Yahoo Finance spoke to experts across the industry to break down the top things you need to know about the move.
Yahoo Finance's Seana Smith and Brad Smith broke down the Altman hire and what it means for company outlook. Seana Smith said, "The ability of Satya Nadella, the CEO there, to court Sam Altman in such a timely manner, I think largely viewed as a huge win at this point."
RBC Capital Markets Software Equity Analyst Rishi Jaluria believes the move is "a huge coup for Microsoft." Jaluria added, "I think the pace at which Microsoft continues to develop their own tech that will probably be competitive with OpenAI, I think that will accelerate."
3. Microsoft's 'carte blanche' to IP
NYU Professor of Technology, Operations, and Statistics Vasant Dhar sees the move as Microsoft having "carte blanche" on access to OpenAI's intellectual property through its development team behind its artificial intelligence model. Dhar explained, "Altman is going to go there. [OpenAI President Greg] Brockman is going to go there. I bet a bunch of employees will go there because this is an area where relationships really matter ... expect to see a fair amount of IP just sort of walk out and walk into Microsoft."
Macquarie Lead Equity Analyst Fred Havemeyer thinks that "the team building aspect is one of the most critical things to discuss." Havemeyer explained, "One of the reasons that the engineers and teams at OpenAI appear so ready to join him is from what we've been hearing, the general loyalty that he inspires among the teams that he's been building ... to produce the best technology possible."
Video Transcript
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SEANA SMITH: The focus, I think, more broadly speaking for investors this morning is Microsoft. The ability of Satya Nadella, the CEO there, to quote, to quote Sam Altman in such a timely manner, I think, largely viewed as a huge win here at this point.
BRAD SMITH: Absolutely. We also have a quote from Evercore ISI on the announcement of this. And it's particularly interesting seeing what some of the street has been saying. That while it remains to be seen how much brain drain there will be at OpenAI, we think the fundamental risk to Microsoft largely contained with Altman and the team on board.
Now, here's what's also critical to remember and we're going to discuss this with some of our guests throughout the day. Is just the board structure and how much scrutiny that has taken on over at OpenAI at least.