Story perspectives

Microsoft CEO Testifies in Musk’s $134B OpenAI Lawsuit

5/12/2026

Summary

Nadella Testifies

Satya Nadella, Microsoft CEO, testified on May 11, 2026 in Oakland federal court in Elon Musk’s $134 billion lawsuit against OpenAI’s co-founders.
Nadella said OpenAI kept rights, Microsoft’s partnership gave no control, and Microsoft invested over $13 billion for a $93 billion return.
2018 internal Microsoft emails called OpenAI research “no value in engaging” and warned it might “storm off to Amazon”, with evidence ending Wednesday and a verdict due the week of May 18, 2026.

Summary

Sutskever Launches Lab

Ilya Sutskever left OpenAI six months after the 2023 failed attempt to oust Sam Altman.
After departing, Ilya Sutskever founded a lab focused on AI-driven existential risk research.
Sam Altman said he is happy the case is going to trial to explain everything and close the chapter.
Judge Yvonne Gonzalez Rogers will issue the final remedy and is noted for asserting independent authority.

History

Historical Context

In May 1998 the U.S. Department of Justice and 20 states sued Microsoft, accusing it of bundling Internet Explorer with Windows to cement a monopoly. Judge Thomas Penfield Jackson oversaw the trial, leading to a settlement that reshaped software-licensing rules. The case set a precedent that regulators now cite when examining massive AI partnerships.

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Nadella Testifies

Satya Nadella, Microsoft CEO, testified on May 11, 2026 in Oakland federal court in Elon Musk’s $134 billion lawsuit against OpenAI’s co-founders.
Nadella said OpenAI kept rights, Microsoft’s partnership gave no control, and Microsoft invested over $13 billion for a $93 billion return.
2018 internal Microsoft emails called OpenAI research “no value in engaging” and warned it might “storm off to Amazon”, with evidence ending Wednesday and a verdict due the week of May 18, 2026.

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