Microsoft CEO Satya 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, appearing before a federal court in Oakland, California. His testimony centered on his leadership role and the origins of Microsoft’s high-profile partnership with OpenAI.
Nadella Opens With Partnership History
Dressed in a navy suit, Nadella answered early questions about how Microsoft first aligned itself with OpenAI. The company has poured more than $13 billion into OpenAI across several rounds. A $1 billion check arrived in 2019, followed by $2 billion in 2021 and a landmark $10 billion commitment in 2023. Those figures have surfaced repeatedly throughout the proceeding.
Microsoft is named as a defendant in the suit. Elon Musk alleges the tech giant aided and abetted OpenAI’s purported breach of its original charitable mission. Musk filed the lawsuit in 2024 against OpenAI, CEO Sam Altman, and president Greg Brockman.
Background on the Dispute
Musk co-founded OpenAI alongside Altman and Brockman in 2015. Internal disagreements, including a failed push to fold the organization into Tesla, led him to exit the board in 2018. He later launched rival AI startup xAI, which he subsequently merged with SpaceX.
OpenAI established a for-profit subsidiary shortly after Musk’s departure to make outside capital raises more feasible. The company’s valuation has since climbed past $850 billion. Last October, OpenAI completed a recapitalization that positioned it as a nonprofit holding an equity stake in its commercial arm. Microsoft disclosed at that time it held roughly a 27% stake in the for-profit unit, valued at around $135 billion.
Musk told the court during his own testimony last month that Microsoft’s $10 billion investment was the moment he concluded OpenAI had drifted from its founding purpose. He described the scale of that commitment as a turning point that prompted him to pursue legal action. “I was concerned they were really trying to steal the charity,” Musk said from the stand, as quoted by CNBC.
Partnership Strains Emerge Alongside Trial
The Microsoft-OpenAI relationship has faced friction despite both sides publicly defending it as strategically vital. On the same day jury selection opened in the trial, the two companies unveiled a revised partnership agreement allowing OpenAI to limit revenue-sharing payments and work with cloud providers beyond Microsoft.
Musk acknowledged he does not oppose a commercial arm outright, but argued the profit motive had overtaken OpenAI’s charitable core. He also questioned whether Microsoft’s control over a transformative AI system served the public interest.
Nadella’s full testimony was still underway as of Monday afternoon.
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