Microsoft taking swift action to mitigate OpenAI risk, says Morgan Stanley

Morgan Stanley analyst Keith Weiss says that the leadership tumult at OpenAI may create an opportunity for competitors to close the gap to the market-leading GPT model and the situation continues to be fluid, though the analyst adds that Microsoft “looks to be taking swift action to mitigate the risks” and that the near-term financial impacts appear limited. It appears Microsoft and Sam Altman are still pursuing two potential outcomes: either solve the issue at OpenAi, bringing Sam Altman and Greg Brockman back into their leadership positions and likely installing a new board; or effectively reconstituting the OpenAI Research Lab within Microsoft, added the analsyt. Morgan Stanley keeps an Overweight rating and $415 price target on Microsoft shares.