Nadella Takes the Stand in Musk v. Altman Trial

CNBC reported Monday that Microsoft CEO Satya Nadella concluded several hours of testimony in the Musk v. Altman trial in Oakland, California. Nadella told the federal court that Elon Musk never reached out to him to flag any worries that Microsoft’s investments in OpenAI had violated special terms or prior commitments.

Nadella Defends Microsoft’s OpenAI Investment

Nadella testified that Microsoft’s backing of OpenAI was commercial from the start. He said the company offered OpenAI heavily discounted computing resources in the partnership’s early years. Microsoft expected to receive marketing advantages in return, Nadella said.

He also described feeling “very proud” of the decision to invest in OpenAI at a time when, in his view, few others were prepared to back the then-unknown AI lab.

A video deposition from Microsoft corporate development executive Michael Wetter was also played in court Monday. Wetter stated that Microsoft has recognised approximately $9.5 billion in revenue through its OpenAI partnership to date.

Background: A Multi-Billion Dollar Partnership Under Scrutiny

Microsoft’s financial relationship with OpenAI spans more than six years. The company committed $1 billion in 2019, added $2 billion in 2021, and injected a further $10 billion in 2023. That brings total investment to more than $13 billion.

Musk, who co-founded OpenAI alongside Sam Altman and Greg Brockman in 2015, departed the board in 2018 after internal disagreements. He filed suit in 2024 against Altman, Brockman, and the organisation itself. The suit alleges they abandoned OpenAI’s founding nonprofit mission. Microsoft is named as a co-defendant, accused of aiding that alleged breach of charitable trust.

Musk himself testified late last month that the 2023 investment round was the tipping point. He said its scale led him to believe OpenAI was, in his words, attempting to “steal the charity.”

What Comes Next in the Trial

Nadella’s appearance closed out what had been a closely watched stretch of executive testimony. Altman is scheduled to take the stand Tuesday, according to his legal team.

OpenAI converted to a for-profit structure in the period after Musk left the board. Investors have since valued the company at more than $850 billion. The trial centres on whether that transformation betrayed the terms under which the organisation was originally founded.

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