In a significant boost to its market standing, Microsoft’s stock price soared to an all-time high on Monday, following the high-profile hiring of former OpenAI CEO Sam Altman. Investors rallied around the news, propelling shares up by as much as 2% to $377.10 in early trading, before stabilizing with a 1% gain.

This surge added a remarkable $54 billion to Microsoft’s market value, further accelerating its impressive year-to-date stock gain to 57%. The stock’s rise came on the heels of Microsoft CEO Satya Nadella’s announcement that Altman, alongside former OpenAI president Greg Brockman, will be leading a new advanced AI research team at Microsoft.

Nadella’s announcement, made on the social media platform X (previously known as Twitter), was met with enthusiasm. “We’re extremely excited,” Nadella said, emphasizing the company’s readiness to provide necessary resources for their new team’s success. Altman echoed this sentiment, resharing Nadella’s post with a reaffirming message, “The mission continues.”

Altman’s departure from OpenAI last Friday was a shock to many, as the board cited a lack of confidence in his continued leadership. Over the weekend, there were speculations of a possible reversal of this decision, but talks reportedly fell through, and Emmett Shear, co-founder of Twitch, was named interim CEO at OpenAI.

Microsoft’s strategic move to bring Altman into the fold is seen as a masterstroke to safeguard its investment in OpenAI. As the largest shareholder in OpenAI and having integrated ChatGPT into its search engine Bing, Microsoft’s decision is poised to minimize the risk of an OpenAI exodus while bolstering its extensive AI operations. “Microsoft has moved to secure their investment,” noted Joshua Mahony, chief analyst at Scope Markets.

Before this development, Microsoft shares were already on an upward trajectory, up 54% year-to-date. This growth has been fueled by the burgeoning interest in AI and investor confidence in the “Magnificent Seven” Big Tech stocks, which have become preferred choices during times of market uncertainty.

For investors and tech enthusiasts alike, Microsoft’s latest acquisition signifies a crucial step in consolidating its position in the rapidly evolving AI landscape. The addition of Altman’s expertise and vision is expected to drive further innovation and growth, reinforcing Microsoft’s status as a leader in technology and AI.