Microsoft CEO Satya Nadella took the witness stand in a federal courtroom in Oakland, California, on Monday, as the closely watched Musk v. Altman trial entered what is expected to be its final week. He was followed by Ilya Sutskever, the OpenAI co-founder and AI researcher whose 2023 vote helped briefly oust Sam Altman as CEO.
What Nadella told the jury
Nadella answered questions about the origins of Microsoft's partnership with OpenAI, his understanding of the relationship, and his role during the chaotic November 2023 days when Altman was fired and then reinstated. According to courtroom reporting, Nadella testified that Musk never contacted him with concerns that Microsoft's investments breached any special commitments. He maintained that OpenAI kept its autonomy even as the alliance deepened over the years, telling the court that "OpenAI had all the rights and resources they always had."
Musk's attorneys pressed Nadella on 2018 internal Microsoft correspondence in which he questioned the wisdom of offering discounted Azure compute to OpenAI — communications Musk's side has used to argue the nonprofit was steered toward a commercial structure that ultimately benefited Microsoft.
Sutskever's $7 billion disclosure
After Nadella stepped down, Sutskever was called and questioned by Musk lawyer Steven Molo about why he joined OpenAI, his communications with Musk, and his involvement in Altman's ouster. In one notable moment, Sutskever said his stake in OpenAI's for-profit arm is now worth about $7 billion — a figure that underscores how dramatically the organization's value has shifted since its nonprofit founding.
What the case is about
Musk alleges that Altman and co-founder Greg Brockman misled him as OpenAI moved from a charitable mission toward a for-profit model, and he is seeking what reporting has described as more than $130 billion in damages. Musk has said he does not want the money personally — he wants any "ill-gotten gains" returned to the nonprofit. The suit also asks the court to unwind OpenAI's public-benefit-corporation conversion, remove Altman and Brockman from leadership, and limit OpenAI's ability to license technology exclusively to Microsoft.
The trial is before Judge Yvonne Gonzalez Rogers, with an advisory jury whose assessment is expected to begin around May 18. Altman himself is expected to testify later in the week.
Why it matters
Few corporate disputes have put this much of the modern AI industry under oath at once — the world's most valuable AI startup, its largest backer, and the billionaire who helped seed it. However the verdict lands, the testimony is producing a rare public record of how the OpenAI–Microsoft arrangement actually came together, and what "independence" means when one partner supplies the compute, the capital, and a sizable equity claim.
