Microsoft (MSFT) shares have been rising despite the drama at AI-partner OpenAI. Microsoft had initially announced that OpenAI Co-Founder Sam Altman would be joining the company after his firing from the startup. Now that Altman has been rehired by the AI company, Microsoft CEO Satya Nadella says he is "encouraged" at what's happening at OpenAI and that the board changes are the "first essential step on a path to more stable, well-informed, and effective governance." Piper Sandler Analyst Brent Bracelin says establishing OpenAI's governance post the leadership shakeup is now imperative. Bracelin notes that there is "a little bit of risk here surface around the reliance around OpenAI and the structure there." He argues Microsoft rightly lent Altman support, though the episode exposed Microsoft's lack of control in the company despite being a major shareholder. Ultimately though, Bracelin think this was likely "one of the better outcomes," especially if Microsoft gets a board seat out of it. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live...

Investors could be shifting tones on AI as global regulators shift on Sam Altman's ousting as OpenAI CEO and swift reinstatement five days later. With ties to Microsoft (MSFT) — a 49% stakeholder in the artificial intelligence firm — stronger than ever, regulators worry Altman and OpenAI's connections to the tech giant will make way for an "acquisition without an actual acquisition." Axios Tech and Policy Reporter Ashley Gold and Duke University Professor and Venture Capitalist Sultan Meghji join Yahoo Finance Live to discuss the types of guardrails lawmakers will want moving forward as similar shakeups could muddy the waters on transparency and antitrust issues. Meghji — former CIO of the Federal Deposit Insurance Corp (FDIC) — calls this messy scenario just "another way to get past the regulatory landscape," similar to past tech and social media trends. Similarly, Gold expands upon how AI developers could skirt past regulator mandates: "There's also agreement that only the... biggest, most complicated, most dangerous advanced models are the ones that should be highly regulated. There's a sense that smaller AI companies that are doing AI models that aren't quite as impactful should not be caught up in the same regulations as these foundation models that OpenAI and others are working on. So, I think that's a bit of a lesson we learned from the social media era." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live...

When technology firm OpenAI ousted its CEO Sam Altman last week with little warning and less explanation, it set off shockwaves throughout Silicon Valley and beyond. Late Tuesday, in a complete reversal, he rejoined the controversial firm he had helped found, effectively bouncing from the board some of the people who had fired him...