Was Sam Altman's ejection from OpenAI a good reason for the major selloff in MSFT at the end of trading on Friday?
Sam Altman was fired from OpenAI near the end of the trading day on Friday. The market interpreted this as bad news as Microsoft shares sold off over 1.5% at one point immediately following the press release.
There was a volume spike associated with the selloff. This shows me that there might be some justification for the big selling.
Was this news of his exit really that detrimental to MSFT? Or was that swift selloff an overreaction?
Was this the exercise of a large amount of long options contracts on one of the most important expiration days in November?
Or did the negative news at EOD on Friday inspire investors to take some money off of the table to avoid the risk of holding over the weekend? Keeping in mind the amazing rally that has been happening.
I am a complete newbie when it comes to artificial intelligence and the entire industry. So if anybody has any insight into the selloff, then please let me know in the comments section.
There was some downward movement after-hours on Friday as well. MSFT almost lost another percentage point in post-market hours.
An interesting side point is the fact that Google, a major competitor in the A.I. space, experienced a rally at the exact moment the news of Altman's termination was released.
It's also interesting to see that NVDA might have caught some bearish sentiment from the MSFT incident.
Once again, the media is already spreading uncertainty into a subject even as insignificant as this. So now he is going to return to OpenAI? Is it time to buy Microsoft up again?
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OceansWave : This shows one thing.. MSFT made a bad move having too much of invested interest within OpenAI whereby they have no decision making power.. from Friday performance we can see that OpenAI has cause a few billion dollar of losses for MSFT.. this is not a good sign.. it’s either they get on the board and have decision making power or else they should pull out of their investment
SpyderCallOP OceansWave: A few billion dollars in just a few minutes. It just blows my mind
SpyderCallOP OceansWave: We could have guessed this was coming...
OceansWave : You see this report: The OpenAI Drama: Sam Altman’s Shocking Ouster, Board Resignation And The Struggle For AI’s Future
As predicted.. I believe MSFT is eyeing for a seat on the board.. gradually Altman will be MSFT executive…
OpenAI is not that big and they as a non-profit has so much expenses to acquire compute resource.. falling under one of these big tech is the right move as they do not have sufficient infrastructure expertise..
Seen this coming sooner or later
SpyderCallOP OceansWave:
OceansWave OceansWave: Satya got played out by OpenAI board.. 8 dollars per share wiped.. wonder how many billions lost just because of them