Nadella Testifies Musk Never Raised OpenAI Concerns With Him
Microsoft CEO Satya Nadella wrapped up his testimony in the Musk v. Altman trial Monday, telling a federal court in Oakland that Elon Musk never contacted him to raise objections about Microsoft’s investment relationship with OpenAI, CNBC reported.
Nadella Defends Microsoft’s OpenAI Stake
Nadella faced hours of questioning about the origins of Microsoft’s strategic partnership with the AI lab. He testified that from the very beginning, the arrangement carried clear commercial intent. Microsoft offered OpenAI steep discounts on computing resources in the early years. The company expected to gain significant marketing advantages in return. A separate video deposition played in court revealed that Microsoft has since generated roughly $9.5 billion in revenue tied to the OpenAI partnership.
Nadella also expressed pride in Microsoft’s early willingness to back OpenAI. He said no other investor was prepared to take that risk when the lab was still unproven.
Background on the Lawsuit
Elon Musk filed suit against OpenAI in 2024, alleging that CEO Sam Altman, President Greg Brockman, and the organisation abandoned their founding commitment to a nonprofit mission. Musk named Microsoft as a co-defendant, accusing it of helping OpenAI breach its charitable trust obligations.
Musk co-founded OpenAI alongside Altman and Brockman in 2015. He departed the board in 2018 following internal disputes, including a failed attempt to fold OpenAI into Tesla. He has since launched rival AI venture xAI, which he merged with SpaceX earlier this year.
When Musk testified late last month, he pointed specifically to Microsoft’s $10 billion investment in 2023 as the moment he concluded OpenAI had strayed from its mission. He said the size of the deal prompted him to launch a legal investigation. Microsoft’s total investment in OpenAI across multiple rounds now exceeds $13 billion.
Altman’s Ouster and Reinstatement
Nadella also addressed OpenAI’s November 2023 governance crisis, when the board abruptly fired Altman, citing concerns about candour with leadership. Nadella said he was caught off guard by the decision. His immediate focus was preserving Microsoft’s position amid the uncertainty. Altman was reinstated within days following intense internal and external pressure. OpenAI’s valuation has since climbed above $850 billion, reflecting the enormous capital that has flowed into its for-profit subsidiary since Musk’s departure.
The trial continues in Oakland as additional witnesses are expected to take the stand later this week.
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