Nadella Testifies Musk Never Raised Concerns About Microsoft’s OpenAI Deals

CNBC reported Monday that Microsoft CEO Satya Nadella wrapped up his testimony in the ongoing Musk v. Altman trial. He told the federal court in Oakland, California, that Elon Musk never once reached out to him with worries about Microsoft’s OpenAI investment.

Nadella Defends Microsoft’s OpenAI Investment From the Stand

Nadella faced hours of questioning on the partnership’s origins and commercial structure. He testified that Microsoft’s backing of OpenAI was never philanthropic in nature. From the start, the company expected tangible business returns, including marketing advantages and heavily discounted computing resources provided to OpenAI in the early years.

A video deposition from Microsoft corporate development executive Michael Wetter, played in court Monday morning, added further commercial context. Wetter stated that Microsoft had recognised approximately $9.5 billion in revenue through the OpenAI partnership as of March 2025. Nadella said he was proud Microsoft took that early risk when few others were willing.

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Background: Musk’s Lawsuit and a Fractured Founding

Musk co-founded OpenAI with Sam Altman and Greg Brockman in 2015. After clashes over the lab’s direction, including an unsuccessful push to fold it into his automaker Tesla, Musk departed the board in 2018. He filed suit against OpenAI, Altman, and Brockman in 2024, alleging they abandoned the organisation’s nonprofit founding mission.

Microsoft was named as a co-defendant, accused of aiding and abetting an alleged breach of charitable trust. The company has invested more than $13 billion in OpenAI since 2019, across rounds of $1 billion, $2 billion, and $10 billion respectively. Musk testified last month that the $10 billion round was the moment he concluded OpenAI had strayed from its charitable purpose.

Also Read: OpenAI Valuation Tops $850 Billion in Latest Funding

Altman Set to Take the Stand as Trial Continues

With Nadella’s portion of proceedings complete, attention now shifts to Altman himself. His legal team confirmed his testimony is scheduled to begin Tuesday. Altman was famously ousted by OpenAI’s board in November 2023 over candour concerns, only to be reinstated days later after intense negotiations. Nadella, who was closely involved during that turbulent stretch, said the firing came as a genuine shock to him.

OpenAI’s valuation has since surged past $850 billion as investor appetite for AI assets shows little sign of cooling.

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