By Gloria Ogbonna
Microsoft CEO Satya Nadella told a federal court on Monday that Elon Musk never personally contacted him to raise concerns that Microsoft’s multibillion-dollar investments in OpenAI violated any special commitments or nonprofit obligations. Nadella’s testimony came during the closely watched Musk v. Altman trial, a case that centers on OpenAI’s transition from a nonprofit research lab into a company backed by billions in commercial funding.
According to reporting from CNBC, Nadella spent several hours on the witness stand answering detailed questions about Microsoft’s strategic partnership with OpenAI, the financial structure of their agreements, and his involvement during the tumultuous period in late 2023 when OpenAI CEO Sam Altman was briefly removed from his position. Altman is expected to testify following Nadella’s appearance.
Musk filed suit in 2024 against OpenAI, Altman, and company president Greg Brockman, alleging that the organization abandoned its original charitable mission by creating and expanding a for-profit subsidiary. Microsoft is also named as a defendant in the lawsuit, with Musk accusing the tech giant of aiding and abetting what he characterizes as a breach of charitable trust.
Microsoft has been one of OpenAI’s most significant financial backers since 2019—well before the company rose to global prominence with the launch of ChatGPT in late 2022. Over the years, Microsoft has invested more than $13 billion into OpenAI, including an initial $1 billion investment in 2019, $2 billion in 2021, and a headline-grabbing $10 billion expansion of the partnership in 2023. Those investments have been a central focus of courtroom questioning.
Musk testified that the scale of Microsoft’s $10 billion commitment marked a turning point for him. He said it convinced him that OpenAI had strayed too far from its nonprofit roots. “I was concerned they were really trying to steal the charity,” Musk told the court, explaining that the increasingly lucrative structure of the partnership raised red flags in his mind.
Nadella, however, pushed back on the idea that Microsoft’s involvement was ever framed as a donation. He testified that from the outset, the relationship carried clear commercial elements. Microsoft provided OpenAI with significant discounts on cloud computing resources through its Azure platform, while also expecting strategic and marketing benefits from aligning itself with cutting-edge AI research.
During a video deposition played in court, Microsoft corporate development executive Michael Wetter stated that as of March 2025, Microsoft has recognized approximately $9.5 billion in revenue through its partnership with OpenAI. The figure underscores the financial scale and impact of the collaboration.
Musk was one of OpenAI’s co-founders in 2015, alongside Altman, Brockman, and other researchers and executives. However, after internal disagreements about the company’s direction—including a failed proposal to integrate OpenAI more closely with Tesla—Musk departed the board in 2018. OpenAI later established a for-profit subsidiary structure that enabled it to attract large-scale outside investment.
In the years since, OpenAI’s valuation has surged as it became a leader in artificial intelligence development. Meanwhile, Musk launched his own AI venture, xAI, positioning it as a competitor in the rapidly evolving industry.
Nadella’s testimony also delved into the dramatic events of November 2023, when OpenAI’s board abruptly removed Altman as CEO, citing concerns that he had not been “consistently candid” in communications. The decision stunned both the tech world and Microsoft, OpenAI’s largest partner. Within days, after intense negotiations and employee backlash, Altman was reinstated.
Nadella testified that he was surprised by the board’s decision and sought clarity regarding the vague language used in its public statement. “This is the CEO of a company that we are invested in and deeply partnered with,” Nadella said, adding that he expected more detailed explanations about the specific incidents behind the board’s concerns.
He told the court that no substantive information was provided to justify the abrupt leadership change, describing the episode as poorly handled. “It was sort of amateur city, as far as I’m concerned,” Nadella remarked, signaling frustration with the governance process.
As the trial continues, the case is shaping up as a defining legal battle over the future of artificial intelligence governance, nonprofit accountability, and the balance between mission-driven research and commercial ambition. With Altman’s testimony still ahead, the courtroom drama between some of Silicon Valley’s most influential figures is far from over.
Source Breitbart
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