OpenAI, the Microsoft (MSFT)-backed AI company, has appointed Mike Liberatore as its new business finance officer. Liberatore previously served as the chief financial officer for Elon Musk‘s xAI. This hire marks the latest development in the intensifying rivalry between OpenAI CEO Sam Altman and Musk.
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In his new role at OpenAI, Liberatore will oversee the company’s AI infrastructure spending and report directly to OpenAI’s CFO, Sarah Friar. Also, he will work with the team led by President Greg Brockman, which handles the contracts and capital for OpenAI’s computing strategy.
Liberatore’s tenure at xAI was brief – just three months. At xAI, he reportedly helped secure at least $10 billion in funding for the startup. His departure from xAI was part of a series of high-profile exits from Musk’s company.
Before xAI, Liberatore held key positions in Airbnb (ABNB), eBay (EBAY), and PayPal (PYPL).
Rising Altman-Musk Feud
Liberatore’s move is particularly notable given the public rivalry between Altman and Musk. Musk has been vocal in his criticism of OpenAI’s transition to a for-profit structure. Last year, Musk sued Altman and OpenAI for breach of contract and has since attempted to block the company’s transition to a for-profit entity.
In a major step towards that goal, OpenAI disclosed last week that its nonprofit parent will keep control and hold over $100 billion in equity as it restructures into a public benefit corporation.
Separately, the company is boosting computing power through a $300 billion deal with Oracle (ORCL) to expand its AI infrastructure.
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Turning to Wall Street, MSFT stock has a Strong Buy consensus rating based on 34 Buys and one Hold assigned in the last three months. At $625.78, the average Microsoft stock price target implies a 21.8% upside potential.
