Microsoft CEO Defends OpenAI Investment Amid Musk Lawsuit

May 11, 2026

66 min

May 11, 2026 22:30

Microsoft boss 'proud' of profit-making OpenAI investment

## Nadella Proud of OpenAI Investment

Microsoft CEO Satya Nadella expressed pride in the company's profitable investment in OpenAI during his testimony in a lawsuit filed by Elon Musk. The legal battle centers on allegations that OpenAI deviated from its original nonprofit mission.

## Musk's Allegations

Elon Musk, who initially supported OpenAI, claims the organization shifted focus to profit-making, misusing his $38 million donation. He argues for a return to its nonprofit roots, which could affect its competitive stance against AI rivals like Anthropic and Google.

## Microsoft's Role

Nadella defended Microsoft's $135 billion stake, highlighting the growth of OpenAI's nonprofit arm. He acknowledged the financial success but emphasized the benefits to the nonprofit's mission. Musk's legal team argues that Microsoft's involvement pushed OpenAI towards commercialization.

## Internal Tensions

The trial has revealed internal conflicts, including a 2023 incident where OpenAI's board removed founder Sam Altman. Nadella supported Altman, aiming to prevent him from starting a competing venture. Microsoft quickly established a subsidiary to retain Altman and his team, a move estimated to cost $25 billion.

## Future Implications

The trial's outcome could impact OpenAI's potential public offering. A jury is expected to deliver a verdict by May 18, with Judge Yvonne Gonzalez Rogers making the final decision. If Musk prevails, OpenAI's future could face significant changes.

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