Key Points
- Satya Nadella, Microsoft’s CEO, appeared in court Monday as part of Elon Musk’s legal action against OpenAI
- The lawsuit alleges Sam Altman and OpenAI misled Musk by transforming the organization from nonprofit to for-profit status
- Musk’s attorneys are highlighting 2018 internal communications from Microsoft as crucial evidence
- Both Ilya Sutskever, OpenAI’s cofounder, and Sam Altman are scheduled to provide testimony
- The advisory jury is set to present its findings on potential misconduct around May 18
The legal confrontation between Elon Musk and OpenAI, alongside Sam Altman, is approaching its conclusion, with numerous prominent figures scheduled to appear before the court delivers closing statements.
On Monday, May 11, Satya Nadella, CEO of Microsoft, appeared before a federal court in California. His appearance represents a pivotal development in litigation focused on allegations that OpenAI abandoned its original commitment to function as a nonprofit organization dedicated to serving humanity.
The Tesla and SpaceX CEO, who helped establish OpenAI, alleges that both Altman and Greg Brockman, OpenAI’s president, misled him during the company’s transition to a commercial model. OpenAI counters that Musk’s true motivation is to hinder their progress while his competing venture, xAI, attempts to gain ground.
Central to Musk’s arguments are internal communications from Microsoft dating back to January 2018. These messages reveal Nadella expressing skepticism about providing OpenAI with discounted access to Azure cloud services and stating uncertainty about the nature of OpenAI’s research activities.
Following these communications, OpenAI established a commercial division to attract external funding. Microsoft subsequently invested $1 billion in 2019. The tech giant has now poured $13 billion into the partnership, with its ownership stake currently estimated at approximately $228 billion — representing about 27% of OpenAI’s commercial entity.
Musk’s legal representatives contend this sequence of events demonstrates Microsoft deliberately facilitated OpenAI’s departure from its charitable mission.
Microsoft’s Defense
Prior to Nadella’s court appearance, Microsoft mounted a robust defense. The company’s legal team asserted that Microsoft neither participated in nor possessed the capability to assist in violating any charitable trust obligations.
They further highlighted that despite having direct access to Nadella’s personal contact information, Musk remained silent about the Microsoft-OpenAI alliance for five years. Microsoft’s attorneys also referenced a 2020 social media post where Musk stated that OpenAI was “essentially captured by Microsoft,” suggesting he was aware of the commercial relationship well before initiating legal proceedings in 2024.
What Comes Next
Following Nadella’s testimony, Ilya Sutskever, another OpenAI cofounder, is scheduled to take the witness stand. Sutskever orchestrated the controversial 2023 attempt to oust Altman from leadership, only to quickly reverse his position and support Altman’s reinstatement. He subsequently departed from OpenAI and reportedly has had no communication with Altman for more than a year, based on 2025 deposition records.
Sam Altman is anticipated to provide his testimony before the week concludes. His credibility and truthfulness form a cornerstone of Musk’s legal argument.
Since this proceeding is civil rather than criminal, there will be no “guilty” determination. Instead, the jury will assess whether defendants bear liability and determine appropriate compensation for Musk. Judge Yvonne Gonzalez Rogers retains ultimate authority over any remedial measures.
The advisory jury is projected to present its assessment regarding potential wrongdoing during the week beginning May 18.
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