Observed Signal · May 11, 2026 · Legal Trial · Source: CNBC Technology · Impact: 4/5 · Sentiment: Neutral
Microsoft CEO Nadella Testifies in Musk v. Altman Trial
Microsoft CEO Satya Nadella testified in the Musk v. Altman federal trial in Oakland, California on May 11, 2026. The lawsuit, brought by Elon Musk against OpenAI, its CEO Sam Altman and president Greg Brockman, alleges OpenAI violated its nonprofit charitable mission; Musk named Microsoft as a defendant, accusing the company of aiding and abetting the alleged breach of charitable trust. Testimony referenced Microsoft’s multibillion-dollar investments in OpenAI (more than $13 billion across 2019, 2021 and 2023), OpenAI’s recapitalization and Microsoft’s ~27% stake in OpenAI’s for‑profit unit. The article also notes prior testimony from Musk and a videotaped deposition from former OpenAI director Tasha McCauley discussing interactions with Nadella and the OpenAI board after Altman’s 2023 dismissal.
A high-profile trial involving Microsoft and OpenAI — with Microsoft’s CEO testifying — could materially affect corporate relationships, investor stakes and governance norms around large AI companies, with broad implications for the AI industry.
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Key Takeaways & Evidence Grounding
- Satya Nadella testified in the Musk v. Altman federal trial in Oakland, California on May 11, 2026.
- Elon Musk sued OpenAI, CEO Sam Altman and president Greg Brockman in 2024, alleging breach of charitable trust and named Microsoft as a defendant accusing it of aiding and abetting.
- Microsoft has invested more than $13 billion in OpenAI, including $1 billion in 2019, $2 billion in 2021 and $10 billion in 2023.
- OpenAI completed a recapitalization that left Microsoft holding roughly a 27% stake in OpenAI’s for‑profit unit, valued at about $135 billion in disclosures.
- OpenAI’s valuation has been reported at more than $850 billion (per the article).
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Sam Altman to Testify in Musk’s OpenAI Lawsuit
Sam Altman, CEO of OpenAI, is scheduled to testify in a federal trial in Oakland, California on May 12, 2026, in Elon Musk’s lawsuit alleging OpenAI broke commitments to remain a nonprofit. Bret Taylor, OpenAI’s board chair, continued testimony about the board’s role and the company’s corporate recapitalization; he will resume the stand the following morning. Microsoft CEO Satya Nadella also testified, noting Microsoft’s more-than-$13 billion investment in OpenAI and saying Musk did not raise concerns with him about violations. Musk’s 2024 suit names OpenAI, Altman and President Greg Brockman and alleges roughly $38 million in donations were used for unauthorized commercial purposes. The trial began late April/early May 2026 and has included testimony from multiple senior executives.
Musk Cross-Examined in OpenAI Trial
On April 29, 2026, Elon Musk continued testifying in his lawsuit challenging OpenAI’s conversion from a nonprofit to a for-profit structure. During a heated cross-examination by OpenAI attorney William Savitt, Musk said he lacked detailed knowledge of OpenAI’s internal safety efforts and was unsure what “safety cards” are. Musk reiterated that his roughly $38 million in early donations helped found OpenAI and said Microsoft’s reported $10 billion investment was a tipping point that eroded his trust in the organization. The case centers on claims of breach of charitable trust and unjust enrichment; Microsoft is also a named defendant. Judge Yvonne Gonzalez Rogers is overseeing a two-phase trial (liability then remedies). Musk’s testimony is expected to continue, and Jared Birchall is slated as the next witness.
Musk Testimony Dominated First Week of Musk v. Altman
The first week of the Musk v. Altman trial in Oakland concluded May 2, 2026, after Elon Musk testified for three days, telling the jury OpenAI leaders tried to "steal a charity." Musk sued OpenAI, CEO Sam Altman and President Greg Brockman in 2024, alleging they reneged on promises to keep OpenAI a nonprofit and misused about $38 million Musk donated. OpenAI, which has raised large private capital and counts Microsoft among investors, calls the claims baseless. Musk’s legal team seeks up to $134 billion in damages and wants remedies including reversing OpenAI’s for-profit conversion and removing Altman and Brockman. Judge Yvonne Gonzalez Rogers is presiding; the trial was split into a liability phase expected to conclude by May 21, 2026.
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