Key Highlights
- Satya Nadella, Microsoft’s CEO, provides testimony Monday in Elon Musk’s legal action against OpenAI
- Elon Musk alleges Sam Altman and OpenAI misled him during the transformation from nonprofit to for-profit entity
- Private Microsoft correspondence from 2018 plays a pivotal role in Musk’s allegations
- Testimony expected from OpenAI’s cofounder Ilya Sutskever and CEO Sam Altman
- Advisory jury to deliver its assessment on potential misconduct during the May 18 week
The courtroom battle between Elon Musk and OpenAI is approaching its climax, with multiple prominent figures scheduled to provide testimony ahead of final arguments.
On Monday, May 11, Satya Nadella, the chief executive of Microsoft, appeared in a California federal courtroom. His appearance represents a pivotal juncture in the proceedings, which revolve around allegations that OpenAI abandoned its original nonprofit mission dedicated to serving humanity’s interests.
Musk, an original cofounder of OpenAI, contends that Altman along with OpenAI president Greg Brockman misled him during the organization’s transition toward a commercial business model. OpenAI’s defense maintains that Musk’s true motivation is to hinder the company’s progress while his competing artificial intelligence venture, xAI, works to close the gap.
The prosecution’s strategy heavily relies on confidential Microsoft correspondence dated January 2018. These communications reveal Nadella expressing doubts about providing OpenAI with discounted Azure cloud computing resources and acknowledging uncertainty about the organization’s research activities.
Following this correspondence, OpenAI established a for-profit division to attract external capital. Microsoft subsequently invested $1 billion in 2019. The tech giant has now pledged $13 billion overall, with its ownership stake currently estimated at approximately $228 billion — representing roughly 27% of OpenAI’s commercial subsidiary.
Musk’s attorneys contend this sequence of events demonstrates Microsoft’s complicity in steering OpenAI away from its charitable foundation.
Microsoft’s Counter-Arguments
Microsoft has vigorously defended its position prior to Nadella’s court appearance. The company’s legal representatives maintain that Microsoft neither participated in nor had the capacity to facilitate any breach of charitable obligations.
They further emphasized that Musk possessed Nadella’s direct phone contact but failed to voice any objections regarding the Microsoft-OpenAI collaboration for a full five years. The defense also referenced a 2020 social media post by Musk on X characterizing OpenAI as “essentially captured by Microsoft,” suggesting he was aware of the commercial relationship well before initiating legal proceedings in 2024.
Upcoming Court Proceedings
Following Nadella’s testimony, Ilya Sutskever, another OpenAI cofounder, is scheduled to take the witness stand. Sutskever orchestrated the 2023 initiative to oust Altman from leadership, only to immediately reverse his position and support Altman’s reinstatement. He subsequently departed from OpenAI and hasn’t communicated with Altman for more than a year, based on 2025 deposition records.
Sam Altman is anticipated to provide testimony later in the current week. His credibility and trustworthiness form the cornerstone of Musk’s legal arguments.
Given the civil nature of these proceedings, no criminal conviction is possible. The jury’s responsibility is to determine defendant liability and appropriate compensation for Musk. Judge Yvonne Gonzalez Rogers retains ultimate authority over any remedial measures.
The advisory jury is projected to present its conclusions regarding wrongdoing during the week beginning May 18.
