Microsoft CEO Satya Nadella Testifies In OpenAI Trial

Microsoft CEO Satya Nadella and former OpenAI co-founder Ilya Sutskever testified on May 11, 2026, as the legal battle between Elon Musk and OpenAI CEO Sam Altman entered its third week. The testimony focused on the nature of the partnership between Microsoft and OpenAI, the governance of the artificial intelligence startup, and the circumstances surrounding the brief removal of Sam Altman as CEO in November 2023.

During his testimony, Nadella defended Microsoft’s relationship with OpenAI, characterizing it as a commercial partnership from its inception. He testified that Elon Musk had never contacted him to express concerns that Microsoft’s investments in the company violated any special commitments. Nadella stated he was very proud that Microsoft took the risk to invest in OpenAI when other potential investors were unwilling to bet on the early-stage lab.

According to CNBC, Nadella clarified that Microsoft’s investments were not intended as donations. He noted that in the early years of the partnership, Microsoft provided OpenAI with significant discounts on computing resources, anticipating that the company would gain marketing benefits from the arrangement.

The financial scale of the partnership was further detailed through a video deposition played on May 11. Michael Wetter, a corporate development executive at Microsoft, testified that the company had recognized approximately $9.5 billion in revenue through its relationship with OpenAI as of March 2025.

OpenAI Governance and the 2023 Board Crisis

A significant portion of Nadella’s testimony addressed the November 2023 crisis when the OpenAI board dismissed Sam Altman. Nadella testified that he was pretty surprised by the board’s decision and that his primary objective was to ensure continuity for Microsoft customers.

Nadella stated that he attempted to determine the specific reasons for Altman’s removal, specifically questioning the board’s statement that Altman was not consistently candid in his communications. Nadella testified that the board failed to provide sufficient detail or specific incidents to justify that phrasing, leading him to conclude that the situation was driven by poor communication or jealousy.

Nadella described the board’s handling of the crisis as amateur city, as far as I’m concerned, he testified.

However, this account was countered by former OpenAI director Tasha McCauley. In a videotaped deposition shown during the first week of May 2026, McCauley recalled that Nadella wanted to restore the previous leadership structure. While McCauley stated the board did not believe that was the correct move, Nadella testified on May 11 that he never demanded the board reinstate Altman as CEO.

Internal Concerns and the Nonprofit Mission

Ilya Sutskever, a renowned AI researcher and former OpenAI co-founder, also took the stand on May 11. Sutskever testified that he had raised concerns regarding Sam Altman’s behavior to the board, driven by a fear that the organization could be destroyed.

Sutskever explained that his actions were motivated by a sense of a great deal of ownership over the startup.

I simply cared for it, and I didn’t want it to be destroyed.

Ilya Sutskever

These internal tensions align with the core of the lawsuit filed by Elon Musk. In testimony delivered in April 2026, Musk argued that OpenAI had betrayed its original nonprofit mission to remain a charity. Musk identified Microsoft’s $10 billion investment as the critical tipping point that convinced him the company was violating its philanthropic goals.

Musk testified that while he is not entirely opposed to OpenAI maintaining a for-profit unit, the arrangement had evolved into the tail wagging the dog. He accused Sam Altman and Greg Brockman of enriching themselves from a charity while maintaining the prestige associated with running a nonprofit.

I was concerned they were really trying to steal the charity.

Elon Musk

Musk further questioned the implications of Microsoft’s influence over the development of advanced AI.

All due respect to Microsoft, do you really want Microsoft controlling digital superintelligence?

Elon Musk