Key Points
- Satya Nadella, Microsoft’s CEO, appeared Monday as a witness in Elon Musk’s legal action against OpenAI
- The lawsuit alleges that Altman and OpenAI misled Musk by transforming the organization from nonprofit to for-profit
- Private correspondence from Microsoft dating to 2018 forms a cornerstone of Musk’s arguments
- Ilya Sutskever, OpenAI’s cofounder, and Sam Altman are scheduled to provide testimony
- The advisory jury will present its findings regarding potential misconduct beginning May 18
The legal confrontation between Elon Musk and OpenAI, led by Sam Altman, is approaching its conclusion as prominent figures in the technology industry prepare to deliver critical testimony ahead of final statements.
On Monday, May 11, Satya Nadella, the chief executive of Microsoft, appeared in federal court in California. His appearance represents a pivotal development in the proceedings, which examine allegations that OpenAI violated its original commitment to function as a nonprofit organization dedicated to serving the public interest.
Musk, an original cofounder of OpenAI, contends that Altman along with OpenAI president Greg Brockman misled him during the organization’s transition toward a profit-seeking business model. OpenAI maintains that Musk’s true motivation is to hinder the company’s progress while his competing artificial intelligence venture, xAI, attempts to close the competitive gap.
The prosecution’s strategy heavily relies on confidential Microsoft correspondence from January 2018. These communications reveal Nadella expressing skepticism about providing OpenAI with discounted access to Microsoft’s Azure cloud infrastructure and indicating uncertainty about the nature of OpenAI’s research activities.
Following this correspondence, OpenAI established a for-profit division to attract external capital. Microsoft subsequently provided $1 billion in funding in 2019. The tech giant has now allocated a total of $13 billion, with its current ownership interest estimated at approximately $228 billion — representing roughly 27% of OpenAI’s commercial entity.
Musk’s attorneys contend this sequence of events demonstrates that Microsoft deliberately assisted in steering OpenAI away from its charitable mission.
Microsoft’s Response
Microsoft has vigorously contested the allegations prior to Nadella’s court appearance. The company’s legal representatives maintained that Microsoft neither participated in nor could have facilitated any violation of charitable obligations.
They further emphasized that Musk possessed Nadella’s direct contact information yet failed to express any objections regarding the Microsoft-OpenAI collaboration for five consecutive years. Additionally, they referenced a 2020 social media post by Musk on X where he stated that OpenAI was “essentially captured by Microsoft,” suggesting he was aware of the commercial relationship well before initiating legal proceedings in 2024.
Upcoming Proceedings
Following Nadella’s testimony, Ilya Sutskever, another OpenAI cofounder, is scheduled to appear before the court. Sutskever spearheaded the 2023 initiative to oust Altman from leadership, only to quickly change position and support his reinstatement. He subsequently departed from OpenAI and has had no communication with Altman for more than a year, based on 2025 deposition records.
Sam Altman is anticipated to testify before the week concludes. His credibility and trustworthiness constitute fundamental elements of Musk’s legal arguments.
Since this matter is being heard in civil court, no criminal conviction is possible. The jury will determine whether the defendants bear liability and what form of compensation Musk should receive. Judge Yvonne Gonzalez Rogers retains ultimate authority over any remedial measures.
The advisory jury is projected to provide its assessment of wrongdoing during the week commencing May 18.
