Microsoft OpenAI Trial Nadella Testifies
Microsoft OpenAI trial highlighted Nadella's funding timeline and governance shifts, prompting investors to reassess Microsoft's exposure and IPO risk.
KEY TAKEAWAYS
- Nadella outlined Microsoft's funding path from a $1B 2019 deal to roughly $13B committed.
- Holdings tied to those commitments were described as valued near $228B.
- Advisory jury views due the week of May 18, 2026 could affect OpenAI IPO prospects.
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Microsoft (MSFT) Chief Executive Satya Nadella testified on May 11, 2026, in the Microsoft OpenAI trial about the company’s funding and partnership with OpenAI and related governance changes affecting leadership and investor stakes.
Nadella Testifies in Oakland
Nadella appeared in week three of the Musk v. Altman federal case in Oakland before U.S. District Judge Yvonne Gonzalez Rogers. His roughly two-and-a-half-hour testimony focused on Microsoft’s evolving relationship with OpenAI. He cited internal 2018 emails revealing early hesitation over funding and questions about Azure discounts. Nadella also addressed his role in the brief 2023 removal and subsequent reinstatement of OpenAI CEO Sam Altman.
Microsoft Investment and OpenAI Governance
Microsoft’s investment in OpenAI began with a $1 billion deal in January 2019 and expanded to about $13 billion in total commitments. Holdings tied to these commitments are now valued near $228 billion. The partnership included a $10 billion tranche approved by board member Shivon Zilis in 2023.
OpenAI was founded in 2015 as a nonprofit focused on developing artificial general intelligence (AGI) for the public good. Elon Musk said he donated about $38 million before leaving the board in 2018 amid funding disputes. The organization later restructured as a for-profit benefit corporation under nonprofit oversight. Its bylaws were changed in 2025 so Altman can remain CEO with support from only one-third of the board.
Musk seeks remedies that include reverting OpenAI to nonprofit status and removing Altman and Greg Brockman from the board. These outcomes could affect OpenAI’s planned initial public offering. The advisory jury is scheduled to deliver its views the week of May 18, 2026.
