This is a “clear win” for Microsoft and “should help offset concerns regarding potential near-term uncertainty at OpenAI,” Evercore ISI analyst Kirk Materne wrote in a note.

Meanwhile, OpenAI’s board replaced Altman with Emmett Shear, the former CEO of Twitch, defying calls from investors to reinstate the startup’s ousted chief. Separately, Wired reported that about 500 OpenAI employees threatened to leave the startup and join Altman at Microsoft unless the board resigns and reinstates him as CEO.

Microsoft Ends Weekend of OpenAI Drama With Coup of Its Own

“While it remains to be seen how much ‘brain drain’ there will be at OpenAI, we think the fundamental risk to Microsoft is largely contained with Altman and team on board,” said Materne.

Technology stocks have been rebounding in recent weeks as cooling inflation lifted hopes that the Federal Reserve was near the end of its rate-raising cycle. The rallies have meant that both Apple Inc. and Microsoft are inching closer to $3 trillion market capitalizations.