Microsoft shares could see some mild selling after its OpenAI partner fired its CEO in a shock move.
MSFT – Daily Chart
After Friday’s close, MSFT is trading at $369.85, which could be important for the overall sector.
Microsoft and OpenAI have been the stock story of the year, which led to the AI tech rally. The tech giant announced it was incorporating the company’s ChatGPT software into its Bing search engine, and that led to a big push among rival firms to catch up.
Late on Friday, OpenAI shocked the market with news that it had fired its CEO and co-founder Sam Altman. The early press release said he had been “less than candid” with other board members. On Saturday, rumours circulated that the board sought to reinstate the entrepreneur.
Reports also said that Microsoft CEO Satya Nadella was “furious” at the change.
Whatever happens next shows instability at a company that Microsoft had invested much time and money into. Nadella’s firm recently launched a $30 per month premium version of its 365 business productivity suite and other institutional efforts are expected.
There is no real threat to Microsoft, and the billions committed to OpenAI are safe. However, it is not ideal that there is now a culture of instability at AI firms, especially when companies like Google seek to run their AI tools.
Traders should monitor MSFT in the pre-market and any effects on the futures market in the Nasdaq tech index. Some profit-taking may emerge in the stock.