Microsoft CEO Satya Nadella takes stand in Musk v. Altman trial

Microsoft CEO Satya Nadella passes through security at the federal courthouse during proceedings in the trial over Elon Musk’s lawsuit against OpenAI in Oakland, California, on May 11, 2026.

Karl Mondon | AFP | Getty Images

Microsoft CEO Satya Nadella took the stand to testify in the Musk v. Altman trial in federal court in Oakland, California, on Monday. 

Nadella, wearing a navy suit with a blue tie, began his testimony by answering questions about his role at Microsoft and the early days of the company’s strategic partnership with OpenAI.

In 2024, Elon Musk sued OpenAI, its CEO, Sam Altman, and its president, Greg Brockman, alleging that they went back on their vow to protect the artificial intelligence company’s nonprofit structure and follow its charitable mission. Microsoft is named as a defendant in the lawsuit, as Musk accuses the company of aiding and abetting OpenAI’s purported breach of charitable trust. 

Microsoft has been one of OpenAI’s major backers since 2019, years before the company rocketed into the mainstream with the launch of its ChatGPT chatbot in late 2022. Microsoft’s more than $13 billion worth of investments in OpenAI, including a $1 billion investment in 2019, a $2 billion investment in 2021 and $10 billion in 2023, have come up repeatedly over the course of the trial. 

Musk, who testified late last month, said Microsoft’s $10 billion investment was the key tipping point that made him believe OpenAI was violating its nonprofit mission. He testified that the scale of the investment bothered him, and it prompted him to open a legal investigation into OpenAI. 

“I was concerned they were really trying to steal the charity,” Musk said from the stand.

Musk co-founded OpenAI alongside Altman, Brockman and a handful of other executives and researchers in 2015. After a number of disagreements about OpenAI’s direction, including a failed effort to join it with his automaker Tesla, Musk left the OpenAI board in 2018. He went on to launch a competing AI startup, xAI, which he merged with SpaceX earlier this year. 

OpenAI established a for-profit subsidiary in the months following Musk’s departure, which allowed the company to raise outside funding more easily. Investors, including Microsoft, have since poured billions of dollars into OpenAI’s for-profit arm, and the company’s valuation has swelled to more than $850 billion. 

In October, OpenAI completed a recapitalization that cemented its structure as a nonprofit with an equity stake in its for-profit business. As part of that announcement, Microsoft disclosed that it held a roughly 27% stake in OpenAI’s for-profit unit that was valued at around $135 billion.

The relationship between OpenAI and Microsoft has shown signs of strain in recent months, even as both companies continue to tout it as strategic and core to their businesses. Late last month, the same day that jury selection kicked off in Musk v. Altman, the companies announced a revamped partnership agreement that allows OpenAI to cap revenue share payments and serve customers across any cloud provider.

OpenAI said in a release that the agreement aimed to “simplify our partnership and the way we work together.”

Musk testified that he is not entirely against OpenAI having a for-profit unit, but he said it became “the tail wagging the dog.” He repeatedly accused Altman and Brockman of enriching themselves from a charity while also reaping the positive associations that come from running a nonprofit.

“Microsoft has their own motivations, and that would be different from the motivations of the charity,” Musk said from the stand. “All due respect to Microsoft, do you really want Microsoft controlling digital superintelligence?”

During a videotaped deposition shown in court last week, former OpenAI director Tasha McCauley recalled a discussion with Nadella and her fellow board members after the 2023 decision to dismiss Altman as OpenAI’s CEO.

“To the best of my recollection, Satya wanted to restore things to as they had been,” McCauley said. The board members didn’t think that was the right move, she said.

— CNBC’s Jordan Novet contributed to this report.

WATCH: The Musk vs. OpenAI trial is underway — here’s where things stand

The Musk vs. OpenAI trial is underway — here's where things stand
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Visited 1 times, 1 visit(s) today

Related Article

Nvidia’s trillion-dollar run puts pressure on the bulls

BEIJING, CHINA – MAY 14: Nvidia CEO Jensen Huang (C) gestures as he prepares to depart following a welcome ceremony at the Great Hall of the People on May 14, 2026 in Beijing, China. President Trump is meeting with President Xi Jinping in Beijing to address the Iran conflict, trade imbalances, and the Taiwan situation

Permutations in Europe: What’s still at stake in final weeks of season?

There’s still plenty to play for across Europe as we head into the final matches of the club season. Here are all the title races, Champions League fights, and relegation battles left to be decided in the top leagues this month. This story will be updated until the end of the campaign. 👉 Jump to:EPL

Brewing a Better Half-Gallon Batch

Today I finally ran an experiment I’ve wanted to try for a long time. If you’re a professional barista—or you run a busy café—this may save you some time. Most coffee shops use 1–1.5 gallon batch brewers (Bunn, Curtis, Fetco, etc.). When I opened Short Sleeves Coffee, I intentionally avoided brewing full 1-gallon batches. I

5 Frozen Breakfasts Chefs Say Keep You Full All Morning

Chef-approved frozen breakfasts with more protein and better ingredients. Eating a healthy breakfast every morning is a great way to start the day, but most people don’t have time to cook. Whether you’re rushing out the door in the morning for work, taking the kids to school or both, there’s usually not much time in

CA scales back plan to ban student use of cell phones

By Carolyn Jones, CalMatters This story was originally published by CalMatters. Sign up for their newsletters. Until last month, California was poised to join nearly a dozen other states that ban cell phones in K-12 schools. But under pressure from school boards and administrators, lawmakers scaled back a bill that would have required such a

BulkQuant Launches AI Trading Bot for Crypto, Forex, and Stock Markets

BulkQuant Launches AI Trading Bot for Crypto, Forex, and Stock Markets

London, United Kingdom, May 15, 2026 (GLOBE NEWSWIRE) — BulkQuant has officially launched its AI trading bot platform designed for crypto, forex, and stock market traders seeking a simpler way to automate trading strategies across multiple financial markets. The platform combines AI-powered quantitative analysis, automated trade execution, portfolio monitoring, and adaptive risk management into a

IMF lauds resilient Hong Kong economy but warns of risks linked to Middle East war

IMF lauds resilient Hong Kong economy but warns of risks linked to Middle East war

The International Monetary Fund (IMF) has lauded the resilience of Hong Kong’s economy, noting a sustained recovery despite economic activity having yet to return to pre-Covid levels, while warning of downside risks stemming from escalating geopolitical tensions. It also urged Hong Kong to pursue medium-term financial reforms, including the introduction of a goods and services

Smithsonian Presidents Exhibit Reopens With Low-Key Trump Impeachment Mention

For the past year, the Smithsonian Institution has found itself in the awkward position of telling the nation’s story while being supported in part by a government that wants to narrow how that story is told. In December, the White House threatened to revoke funding to the institution if it did not hand over a

Marvel’s Daredevil Follow-up Is Already Dominating on Streaming

A follow-up to Daredevil: Born Again Season 2 on Disney+ has become a massive streaming success within days of its launch. The Punisher: One Last Kill has quickly climbed to the top of multiple charts, beating out other titles on the platform. The MCU television special follows the gun-toting vigilante, who finds himself targeted by

Is Now a Bad Time to Invest?

The market has been on a roll lately, with the S&P 500 (SNPINDEX: ^GSPC) setting new highs throughout May. If you think you missed your opportunity when the market bottomed in late March, don’t fret. The market hitting new all-time highs is not particularly rare and should not change your investment strategy. And if you

6 bids for Hong Kong land sale signal renewed confidence despite market caution

6 bids for Hong Kong land sale signal renewed confidence despite market caution

The Hong Kong government’s first land sale in the current financial year has drawn six bids, according to the Development Bureau, including those from the city’s largest developers, suggesting a more confident outlook for the residential property market. At the close of tender for Tung Chung Town Lot No 54 at Area 106A on Friday

Each Premier League team reranked: Man City rise; Chelsea, Liverpool collapse

Ryan O’Hanlon Close Ryan O’Hanlon ESPN.com writer Ryan O’Hanlon is a staff writer for ESPN.com. He’s also the author of “Net Gains: Inside the Beautiful Game’s Analytics Revolution.”  and  Bill Connelly Close Bill Connelly ESPN Staff Writer Bill Connelly is a writer for ESPN. He covers college football, soccer and tennis. He has been at

Trump departs China after two-day summit

Trump departs China after two-day summit

IE 11 is not supported. For an optimal experience visit our site on another browser. Trump Wraps China Summit With Xi Jinping: What Are the Results? 05:41 Xi gives Trump rare tour of secret garden at heart of Chinese government 01:04 Now Playing Trump departs China after two-day summit 01:01 UP NEXT Special Report: Trump

Carol Chow was facing a bankruptcy petition by five people over unspecified debts at the time of her death. Photo: Dickson Lee

Embattled Hong Kong developer sued for HK$130 million, days after founder’s death

A Hong Kong property developer has been sued for HK$130 million (US$16.6 million) over allegedly breaching guarantor obligations in two bond subscription agreements, becoming the latest lawsuit to implicate the embattled company and following its founder’s sudden death earlier this week. Lofter Group, known for its urban renewal projects across the city’s core districts, and

Trump’s China visit left chip export issue unresolved

This report is from this week’s The Tech Download newsletter. Like what you see? You can subscribe here. One look at the roster of U.S. execs that cozied up to U.S. President Donald Trump on the 20+ hours flight from Alaska to China on Wednesday and you get a sense of the American delegation’s key focus

Why the Cerebras IPO matters for the AI race with China

Why the Cerebras IPO matters for the AI race with China

Cerebras, an AI chipmaker, saw its shares nearly double on Nasdaq, closing up 70% with a $95B market cap. Cerebras’s powerful chips are key in the US-China AI tech race. Chris Buskirk, co-founder and chief investment officer of 1789 Capital, a key Cerebras investor, says the company’s IPO is geopolitically significant. On Thursday, shares of

Fitbit Air vs Whoop Strap Comparison: Price, Features and AI

The Google Fitbit Air is very much the talk of the fitness tracking town right now, not only because it’s the first new Fitbit device that we’ve had in years, but it’s also one of the first big brands to go head-to-head with the established Whoop Strap (if you don’t count the Polar Loop and

0
Would love your thoughts, please comment.x
()
x