Satya Nadella Testifies in OpenAI Trial as Billionaire Stakes Surface

Satya Nadella, Microsoft’s chief executive, testified Monday in the high‑profile lawsuit over OpenAI’s shift from nonprofit to for‑profit, becoming the third billionaire witness after Elon Musk and Greg Brockman [1]. His testimony focused on the independence of OpenAI despite deepening ties with Microsoft, while other billionaire co‑founders disclosed multi‑billion‑dollar holdings in the company [2].

Key takeaways

• Nadella said OpenAI retained full rights and resources even as Microsoft invested $13 billion across three rounds [1].
• Ilya Sutskever testified his stake in OpenAI’s for‑profit arm is worth about $7 billion [2].
• Greg Brockman, who testified earlier, claimed a stake near $30 billion [2].
• Musk alleges the partnership turned OpenAI into a “closed source, profit‑maximizer,” a claim contested by Altman and Brockman [1].
• The trial’s evidence phase ends Wednesday, with closing statements slated for Thursday [1].

Nadella’s Testimony and Microsoft’s Role

Nadella told the court that OpenAI’s nonprofit foundation still controls the organization, and that Microsoft’s involvement has not eroded that control [1]. He highlighted the 2019 $1 billion investment in OpenAI’s for‑profit arm, followed by additional $2 billion in 2021 and $10 billion in 2023 after the launch of ChatGPT [1]. According to Nadella, the partnership was designed to give OpenAI “all the rights and resources they always had,” and his comments on a 2023 podcast about Microsoft’s close relationship were meant to reassure customers, not to signal ownership [1].

Musk’s lawsuit contends that Microsoft’s funding and cloud‑computing deals pressured Altman and Brockman to abandon the nonprofit mission, a point the judge has treated as “considerable evidence” [1]. Microsoft, however, maintains it was unaware of any conditions tied to Musk’s earlier donations and did not intend to influence OpenAI’s governance [1].

Billionaire Stakes Emerge Amid the Trial

During the same week, Ilya Sutskever, OpenAI’s co‑founder and former chief scientist, took the stand and confirmed his ownership stake is valued at roughly $7 billion [2]. He also noted that he never promised Musk that OpenAI would remain a nonprofit, emphasizing that the organization’s mission transcends its legal structure [2]. Earlier, Greg Brockman testified that his stake approaches $30 billion, making both men the first newly revealed billionaires in the case [2].

These disclosures underscore the financial stakes for the founders as the lawsuit could reshape the company’s governance and profit distribution. Musk, who contributed $38 million to OpenAI and later founded xAI, argues that the current for‑profit model “loots a charity,” a claim that prompted an immediate objection from OpenAI’s lawyers [4].

Why it matters

The trial pits Musk’s vision of an altruistic AI research institute against Altman’s and Brockman’s strategy of blending nonprofit ideals with a lucrative for‑profit arm backed by Microsoft. The outcome could set precedent for how charitable AI initiatives are funded and governed, influencing future collaborations between tech giants and research labs. With evidence collection ending this week and a jury set to deliberate shortly, the decision will likely determine whether OpenAI remains a hybrid entity or reverts to a stricter nonprofit framework [1].