Microsoft CEO Satya Nadella to testify in Elon Musk’s lawsuit against OpenAI

Microsoft CEO Satya Nadella is set to testify on Monday in Elon Musk’s high-stakes lawsuit against OpenAI, a case that could reshape the company behind ChatGPT and complicate its plans to go public.

Nadella is expected to face questions about internal emails and Microsoft’s role in backing OpenAI’s transformation from a nonprofit research lab into one of the world’s most valuable AI companies.

OpenAI CEO Sam Altman is scheduled to testify later in the week as the closely watched federal trial enters its final phase in Oakland, California.

Musk alleges that OpenAI abandoned its original charitable mission and improperly used about $38 million in founding donations to build a for-profit business now valued at roughly $850 billion.

He is seeking a court order that would return OpenAI to nonprofit control, a move that could disrupt the company’s position in the global AI race.

OpenAI argues that Musk left the organisation voluntarily after failing to gain majority control and later became a competitor through his own AI startup, xAI.

A central issue in the trial is Microsoft’s 2019 $1 billion investment in OpenAI, which marked the beginning of a partnership that has since expanded to an estimated $13 billion.

Musk’s lawyers contend the deal shows Microsoft knowingly supported OpenAI’s commercial shift once its profit potential became clear.

The case has revealed years of internal debate among Silicon Valley leaders over how to balance artificial intelligence research with commercial ambitions.

Testimony has included statements from OpenAI co-founder Greg Brockman, while newly disclosed emails show Nadella discussing Azure pricing and early speculation about breakthroughs in artificial general intelligence.

An advisory jury is expected to issue its recommendation by around May 18, after which Judge Yvonne Gonzalez Rogers will make the final decision.

A ruling in Musk’s favour could create major legal and financial obstacles for OpenAI’s anticipated initial public offering.