Tech giant Microsoft, during Tuesday's trading session on the Nasdaq, saw its share value dip to $371.48 a piece, or down 5.75%, from the previous day's close. This nearly erased the $7.59 share value it gained on Monday after the company hired ousted OpenAI co-founder and CEO Sam Altman.

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After a weekend of drama at OpenAI, the creator of ChatGPT, Microsoft CEO Satya Nadella announced that Altman and Greg Brockman, OpenAI's chairman, were joining Microsoft's internal AI team, which boosted the company's performance in the market.

This move immediately buoyed investors as Microsoft's stock climbed up $7.59 to $377.44 per share, eventually closing at $375.67. After trading resumed on Tuesday, November 21, the company's shares saw a brief uptick, touching $376.22 a piece before sliding, as of 10.30 am ET (9 pm IST).

After Altman was suddenly fired last week, Nadella, in a post on X, reaffirmed Microsoft's confidence in the OpenAI co-founder, before announcing that the company was hiring him.

We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners. We look forward to getting to know Emmett…

— Satya Nadella (@satyanadella) November 20, 2023

Nadella also told CNBC that there is a pressing need for a governance overhaul at OpenAI following the sudden removal of CEO Sam Altman. Nadella stressed the necessity of changes in OpenAI's governance structure, signalling that Microsoft intends to engage in a constructive dialogue with the OpenAI board regarding these modifications.

“At this point, I think it’s very clear that something has to change around the governance,” Nadella told CNBC. He added that Microsoft would have “a good dialogue with their board on that.”

Also read: Whether people stay at Open AI or come to Microsoft, open to both options, says Microsoft CEO Satya Nadella