Analyst Optimistic As OpenAI Reinstates Altman, Boosting Microsoft's Spot

Microsoft Corp MSFT stock is trading higher Wednesday after, in a dramatic turn of events, OpenAI reinstated Sam Altman as CEO. 

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The ChatGPT parent announced this decision early Wednesday, introducing a new and notably strong board comprising Bret Taylor as Chair, former U.S. Treasury Secretary Larry Summers, and Adam D'Angelo. This move marks the departure of the previous board members, who were involved in a failed coup, restoring OpenAI to its former state but with enhanced governance. 

For Microsoft, this resolution is akin to a fairy tale ending, Wedbush analyst Daniel Ives notes. 

The analyst adds that OpenAI emerges stronger in terms of innovation and governance, solidifying its relationship with Microsoft. 

Throughout this nearly week-long ordeal, Microsoft, led by Satya Nadella, remained a steadfast supporter of Altman and OpenAI. 

Initially, Microsoft aimed to maintain the existing structure but was forced to make a strategic move in response to the OpenAI board's unexpected actions last Friday. 

The resolution of this saga is a relief to both Nadella and Microsoft's investors, who are pleased to see the situation resolved.

Ives reiterated an Outperform rating on Microsoft with a price target of $425.

Price Action: MSFT shares traded higher by 1.48% at $378.61 on the last check Wednesday.