Microsoft CEO Nadella Takes the Stand in Musk v. Altman Trial

CNBC reported Monday that Microsoft CEO Satya Nadella concluded several hours of testimony in the ongoing Musk v. Altman trial. He told a federal court in Oakland, California, that Elon Musk never reached out to him directly to express concerns about Microsoft’s partnership with OpenAI.

Nadella OpenAI Trial Testimony Centers on Billion-Dollar Bets

Nadella defended Microsoft’s long history of backing OpenAI. He said Microsoft invested early when, in his view, no other major player was willing to take the risk on the then-nascent AI lab.

During a separate deposition played in court, a Microsoft corporate development executive stated the company has recognized roughly $9.5 billion in revenue through its OpenAI partnership to date. Nadella also clarified that Microsoft’s investments were never treated as charitable donations. From the start, he said, the arrangement carried an explicit commercial dimension, including discounted computing resources that Microsoft expected to pay off in marketing and strategic returns.

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Background on the Musk v. Altman Lawsuit

Elon Musk filed suit in 2024 against OpenAI, CEO Sam Altman, and President Greg Brockman, alleging the company abandoned its founding nonprofit mission. Microsoft was named as a co-defendant, with Musk accusing the firm of helping facilitate that alleged breach of charitable trust.

Musk co-founded OpenAI with Altman and others in 2015 before departing the board in 2018 following disagreements over the company’s direction. He has since launched his own competing AI venture, xAI. When Musk testified late last month, he singled out Microsoft’s $10 billion investment in 2023 as the moment he concluded OpenAI was straying from its mission. He described the scale of that commitment as deeply troubling and said it prompted him to open a legal investigation into the organization.

Microsoft’s total OpenAI commitment now exceeds $13 billion, spanning a $1 billion stake in 2019, a $2 billion injection in 2021, and the contested $10 billion round two years ago.

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Sam Altman’s Brief Ouster Resurfaces in Questioning

Nadella was also questioned about the tumultuous November 2023 episode when OpenAI’s board abruptly removed Altman, citing concerns about candor, before reinstating him days later. Nadella described his reaction as genuine surprise. His stated priority during that period was stabilizing Microsoft’s relationship with the lab and ensuring continuity for the partnership.

OpenAI’s valuation has since climbed to more than $850 billion, underscoring just how much has changed since Musk walked away from its board eight years ago.

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