Microsoft CEO Satya Nadella testified in court on May 13, 2026, regarding the ongoing legal dispute between OpenAI and Elon Musk. During his testimony, Nadella defended OpenAI’s transition into a for-profit entity, stating that Microsoft invested in the company with the full expectation that it would evolve its business model to sustain the high costs associated with AI research and infrastructure. Nadella emphasized that the financial demands for computing resources and data centers necessitate a sustainable commercial structure to support long-term development.

In his address to the court, Nadella dismissed criticism from Elon Musk, who alleges that OpenAI abandoned its original non-profit mission in favor of profit-driven operations. Nadella maintained that Microsoft sees no issue with OpenAI maintaining a for-profit structure alongside its non-profit arm, asserting that this arrangement allows for the responsible scaling of AI technology. He described the partnership between Microsoft and OpenAI as a critical collaboration within the technology sector, noting that Microsoft has invested billions into the firm to integrate AI models across its suite of enterprise tools and cloud services.

The testimony occurred during the second week of the trial, where Elon Musk is seeking damages while challenging the legality of OpenAI’s current governance model. According to Nadella, Microsoft’s investment strategy remains focused on OpenAI’s technical capabilities rather than internal founder disputes. The trial's outcome is expected to impact OpenAI’s future corporate governance and its ongoing relationships with major investors, highlighting the deep financial ties between research organizations and large-scale tech corporations.

Microsoft CEO Satya Nadella testified in court on May 13, 2026, regarding the ongoing legal dispute between OpenAI and Elon Musk. During his testimony, Nadella defended OpenAI’s transition into a for-profit entity, stating that Microsoft invested in the company with the full expectation that it would evolve its business model to sustain the high costs associated with AI research and infrastructure. Nadella emphasized that the financial demands for computing resources and data centers necessitate a sustainable commercial structure to support long-term development.

In his address to the court, Nadella dismissed criticism from Elon Musk, who alleges that OpenAI abandoned its original non-profit mission in favor of profit-driven operations. Nadella maintained that Microsoft sees no issue with OpenAI maintaining a for-profit structure alongside its non-profit arm, asserting that this arrangement allows for the responsible scaling of AI technology. He described the partnership between Microsoft and OpenAI as a critical collaboration within the technology sector, noting that Microsoft has invested billions into the firm to integrate AI models across its suite of enterprise tools and cloud services.

The testimony occurred during the second week of the trial, where Elon Musk is seeking damages while challenging the legality of OpenAI’s current governance model. According to Nadella, Microsoft’s investment strategy remains focused on OpenAI’s technical capabilities rather than internal founder disputes. The trial's outcome is expected to impact OpenAI’s future corporate governance and its ongoing relationships with major investors, highlighting the deep financial ties between research organizations and large-scale tech corporations.