Nadella Testifies in Musk's OpenAI Lawsuit in Oakland
PUBLISHED May 10, 2026, 11:09 PM ET
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Oakland, United States — Microsoft chief executive Satya Nadella testified on May 11 in Elon Musk's civil lawsuit against OpenAI, outlining how Microsoft’s funding and early investment supported OpenAI’s shift from a philanthropic organisation to a for‑profit structure and addressing internal emails entered as evidence. The disclosed January 2018 messages show Nadella consulting executives about a discount for OpenAI’s use of Azure and questioning what research OpenAI shared, with comments that Microsoft only opened its checkbook once a profit appeared possible. Microsoft invested $1 billion in 2019 and has since invested about $13 billion, a stake now valued at $228 billion, according to trial filings. The testimony precedes expected questioning of OpenAI CEO Sam Altman, likely on May 12 or 13, and follows earlier testimony from co‑founder Greg Brockman. Elon Musk alleges OpenAI betrayed its nonprofit mission and misused his founding donations of $38 million to help build an enterprise now valued at more than $850 billion; he seeks to revert OpenAI to nonprofit status. OpenAI counters that Musk left voluntarily and now competes through xAI. An advisory jury is expected to report the week of May 18, after which Judge Yvonne Gonzalez Rogers will make final rulings that could affect OpenAI’s corporate structure and planned IPO.
By Sarah Whitman | JQJO News
Timeline of Events
- Musk provided founding donations to OpenAI, later cited at trial as $38 million.
- ChatGPT launched in 2022, driving public attention and rapid valuation growth for OpenAI.
- Microsoft invested early in OpenAI and executives testified about profitable returns and strategic partnership.
- Elon Musk filed a civil lawsuit claiming betrayal of OpenAI's nonprofit mission and misappropriation of donations.
- May trial in Oakland featured testimony from Musk, Greg Brockman and Satya Nadella; Sam Altman expected to testify later this week.
News Intelligence
- This lawsuit could shake up the tech world. If Musk wins, OpenAI could revert to nonprofit status. This might change how AI research is funded and shared. Keep an eye on how this affects Microsoft's investments and the broader AI market.
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Microsoft secured a lucrative early investment in OpenAI, yielding financial returns and a strategic position in the AI market while gaining influence over OpenAI's transition to a for-profit model.
OpenAI founders and current leadership face reputational harm, legal exposure and potential structural changes if the court rules in favor of Musk's claim to revert or constrain the company's for-profit activities.
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