Key Highlights
- Satya Nadella, Microsoft’s CEO, appeared in court Monday as part of Elon Musk’s legal action against OpenAI
- The billionaire entrepreneur alleges Sam Altman and colleagues misled him about OpenAI’s shift from nonprofit to commercial entity
- Crucial Microsoft correspondence from 2018 forms a cornerstone of Musk’s allegations
- OpenAI’s former cofounder Ilya Sutskever and current CEO Sam Altman scheduled to provide testimony
- A jury panel will offer recommendations regarding liability beginning May 18
The legal confrontation between Elon Musk and OpenAI is approaching its conclusion, with prominent technology executives preparing to deliver testimony ahead of final arguments.
On Monday, May 11, Satya Nadella, chief executive of Microsoft, appeared before a federal court in California. His appearance represents a pivotal development in litigation examining whether OpenAI abandoned its original commitment to function as a charitable organization dedicated to benefiting humanity.
The Tesla and SpaceX founder, who helped establish OpenAI, contends that Altman alongside OpenAI’s president Greg Brockman misled him during the organization’s transition toward a commercial business model. The artificial intelligence company maintains that Musk’s true motivation involves hampering their progress while his competing venture, xAI, attempts to gain market position.
Musk’s attorneys have emphasized confidential Microsoft correspondence dated January 2018. These communications reveal Nadella expressing skepticism about providing OpenAI with discounted Azure cloud computing services and acknowledging uncertainty regarding the company’s research activities.
Following this email exchange, OpenAI established a commercial subsidiary designed to attract external capital. Microsoft subsequently provided $1 billion in funding during 2019. The technology giant’s total investment has reached $13 billion, with its ownership position currently estimated at approximately $228 billion — representing roughly 27% of OpenAI’s commercial division.
According to Musk’s legal representatives, this sequence of events demonstrates Microsoft deliberately facilitated OpenAI’s departure from its charitable mission.
Microsoft’s Defense
Microsoft has mounted a vigorous defense prior to Nadella’s court appearance. The company’s attorneys maintain that Microsoft neither participated in nor possessed the capability to violate charitable trust obligations.
They further highlighted that Musk possessed Nadella’s direct contact information yet failed to express concerns about the Microsoft-OpenAI collaboration for five years. Additionally, they referenced a 2020 social media post where Musk stated that OpenAI was “essentially captured by Microsoft,” suggesting his awareness of the business relationship predated his 2024 lawsuit by years.
What Comes Next
Following Nadella’s testimony, Ilya Sutskever, who helped found OpenAI, is scheduled to appear. Sutskever orchestrated the November 2023 attempt to oust Altman from leadership, only to rapidly change position and support his reinstatement. He subsequently departed from OpenAI and has reportedly avoided communication with Altman for more than a year, based on 2025 deposition testimony.
Sam Altman is anticipated to testify later during the current week. His credibility and character have emerged as fundamental elements of Musk’s legal arguments.
As this constitutes civil litigation, no criminal conviction is possible. The jury determines whether defendants bear legal responsibility and what compensation Musk deserves. Judge Yvonne Gonzalez Rogers maintains ultimate authority over any court-ordered remedies.
The advisory jury panel is projected to present its assessment of potential wrongdoing during the week beginning May 18.
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