Nadella Takes the Stand in Musk v. Altman Trial
CNBC reported Monday that Microsoft CEO Satya Nadella took the witness stand in the Musk v. Altman trial, telling a federal court in Oakland that Elon Musk never once reached out to flag concerns about Microsoft’s partnership with OpenAI.
Nadella OpenAI Testimony Centers on Investment Origins
Nadella opened his appearance by fielding questions about the early stages of the Microsoft-OpenAI relationship. He described himself as proud that Microsoft stepped in when no other major backer was prepared to take a chance on the then-unknown research lab. He also drew a clear line between investment and philanthropy, arguing the partnership carried a commercial dimension from day one. In those early years, Microsoft offered OpenAI heavily discounted computing resources and anticipated significant marketing returns in exchange. A video deposition from Microsoft corporate development executive Michael Wetter added further commercial texture, with Wetter saying the company has recognized roughly $9.5 billion in revenue through the OpenAI relationship so far.
The Lawsuit and Musk’s Core Allegation
Musk filed suit in 2024 against OpenAI, CEO Sam Altman, and president Greg Brockman, claiming the company abandoned its founding commitment to a nonprofit structure. Microsoft was named as a co-defendant on the theory that its funding assisted an alleged breach of charitable trust. When Musk testified late last month, he singled out Microsoft’s $10 billion investment round in 2023 as the moment he concluded OpenAI had strayed from its original mission. He told the court he became worried the organization was being converted for private gain at the expense of its charitable purpose.
Microsoft’s Long History With OpenAI
Microsoft’s financial involvement with OpenAI stretches back to 2019, well before ChatGPT brought the company into public conversation. Cumulative investments now exceed $13 billion across multiple tranches. OpenAI’s valuation has since climbed to more than $850 billion. A recapitalization completed in October restructured the organization as a nonprofit holding an equity stake in its commercial arm. Under that arrangement, Microsoft holds roughly a 27% stake in that for-profit unit, valued at approximately $135 billion at the time of disclosure.
Background on Musk’s Departure and the For-Profit Shift
Musk was among OpenAI’s co-founders in 2015. He left the board in 2018 following internal disagreements, including an unsuccessful push to fold OpenAI into Tesla. OpenAI subsequently established its for-profit subsidiary, opening the door to outside capital. Musk later launched his own AI venture, xAI, which he merged with SpaceX earlier this year, making him a direct commercial rival to the organization he helped create.
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