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Satya Nadella Testifies in Musk-OpenAI Trial Over Microsoft Funding

ai-technology · 2026-05-11

Microsoft CEO Satya Nadella testified in the ongoing legal battle between Elon Musk and OpenAI, focusing on Microsoft's early financial backing and strategic partnership with the AI lab. The trial examines whether OpenAI's shift from a nonprofit to a for-profit model breached its original mission. Nadella detailed Microsoft's initial $1 billion investment in 2019 and subsequent funding rounds, totaling over $13 billion. He emphasized that Microsoft had no board seat or control over OpenAI's governance, despite being its primary investor. The testimony aims to counter Musk's claims that OpenAI and Microsoft colluded to monopolize AI development. Musk, a co-founder of OpenAI, left the organization in 2018 and has since launched his own AI venture, xAI. The trial continues to unfold in federal court.

Key facts

  • Satya Nadella testified in the Musk-OpenAI trial.
  • Microsoft invested $1 billion in OpenAI in 2019.
  • Total Microsoft investment in OpenAI exceeds $13 billion.
  • Nadella stated Microsoft had no board seat or control over OpenAI.
  • Elon Musk co-founded OpenAI in 2015 and left in 2018.
  • Musk alleges OpenAI and Microsoft colluded to monopolize AI.
  • Musk launched xAI as a competitor to OpenAI.
  • The trial is being held in federal court.

Entities

Institutions

  • Microsoft
  • OpenAI
  • xAI

Sources