OpenAI faced a whirlwind of events over the weekend as CEO Sam Altman was ousted by the board on Friday. This decision sparked pleas from both employees and investors to reinstate Altman. However, their efforts were in vain as Altman announced his move to Microsoft early on Monday morning after failed negotiations to return to OpenAI. This unexpected development has been hailed as a significant victory for Microsoft, according to RBC Capital Markets Software Equity Analyst Rishi Jaluria. He believes that having Altman join Microsoft is the best possible outcome given the events of the past few days.
Jaluria also commented on the implications of this move for the Microsoft-OpenAI relationship. While he expects the two companies to continue their collaboration, he is unsure if Microsoft will make any additional investments in the partnership. Regardless, Jaluria states that Microsoft is in a win-win situation regardless of the outcome.
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