Musk never raised concerns over Microsoft's OpenAI investments: Nadella
What's the story
In the ongoing Musk v/s Altman trial, Microsoft CEO Satya Nadella has testified that Elon Musk never expressed any concerns about Microsoft's investments in OpenAI. The testimony was given on Monday in federal court in Oakland, California, after hours of questioning by lawyers representing both sides. Nadella was questioned about the early days of Microsoft's strategic partnership with OpenAI and his role during Sam Altman's brief ouster as CEO of the AI company.
Legal battle
Musk's lawsuit against Altman, Brockman, Microsoft
In 2024, Musk sued OpenAI, Altman, and Greg Brockman, the company's president. He alleged that they had broken their promise to protect the nonprofit structure of the AI company and uphold its charitable mission. The lawsuit also names Microsoft as a defendant, with Musk accusing it of aiding and abetting OpenAI's alleged breach of charitable trust.
Investment details
Microsoft has invested $13 billion in OpenAI
Since 2019, Microsoft has been one of OpenAI's biggest investors. The tech giant has invested over $13 billion in the AI company, including a $1 billion investment in 2019, another $2 billion in 2021, and a massive $10 billion in 2023. Nadella emphasized that he was "very proud" of Microsoft's decision to invest when "no one else was willing." He also clarified that these investments weren't donations but had a clear commercial element from the start.
Mission concerns
Musk said Microsoft's investment worried him
Musk had testified last month that Microsoft's $10 billion investment made him think OpenAI was straying from its nonprofit mission. He said the scale of the investment troubled him and led to a legal investigation into OpenAI. "I was concerned they were really trying to steal the charity," Musk said from the stand.
Revenue report
Microsoft has recognized $9.5 billion in revenue from partnership
During a separate video deposition played in court, Michael Wetter, a corporate development executive at Microsoft, revealed that the company has recognized around $9.5 billion in revenue through its partnership with OpenAI as of March 2025. This figure underscores the financial success of Microsoft's strategic alliance with the AI company.
Firing fallout
Nadella 'pretty surprised' by OpenAI board firing Altman
In November 2023, Altman was briefly fired from OpenAI after the board found he had not been "not consistently candid in his communications." He was reinstated days later after intense negotiations. Nadella said he was "pretty surprised" by the board's decision and his priority was to maintain continuity for Microsoft customers. He suspected jealousy and poor communication were at play in this incident.
Stake details
Microsoft owns roughly 27% stake in for-profit OpenAI
In October, OpenAI completed a recapitalization that cemented its structure as a nonprofit with an equity stake in its for-profit business. Microsoft announced it owned a roughly 27% stake in OpenAI's for-profit unit valued at around $135 billion.