Altman returning to OpenAI positive outcome for Microsoft, says Wells Fargo

OpenAI announced that Sam Altman will return to the company as CEO and the board will be mostly replaced, which is a “clear positive outcome” for Microsoft after prolonged back and forth discussions, Wells Fargo the analyst tells investors in a research note. The firm says this outcome likely dodges the threat of a mass exodus of employees from OpenAI to Microsoft and keeps relative continuity at OpenAI from a product and personnel perspective. It expects minimal disruption as a result and keeps an Overweight rating on Microsoft shares with a $425 price target. Wells expects Microsoft eventually obtains a board seat at OpenAI given its significant investment in the for-profit arm of the company, “an important final step.”