Amidst the ongoing legal battle between OpenAI and Elon Musk, Satya Nadella has backed OpenAI’s transition to a for-profit structure during the hearings. The Microsoft CEO stated that the AI company needed a commercial model to support its ambitious artificial intelligence projects and attract large-scale investments.
Nadella made the comments while testifying in a federal court in Oakland, California. Elon Musk has accused OpenAI of abandoning its original non-profit mission and claims the company shifted its focus toward profits after receiving major investments from Microsoft.
Satya Nadella says Musk never raised concerns
During his testimony, Satya Nadella said Elon Musk never personally objected to Microsoft’s partnership or investments in OpenAI in earlier years. According to Nadella, Microsoft always viewed its relationship with OpenAI as a commercial partnership rather than a charitable initiative.
The Microsoft chief also highlighted that OpenAI required strong financial backing to compete in the rapidly growing AI industry. Microsoft has invested billions of dollars into OpenAI, helping the company develop advanced AI systems such as ChatGPT and GPT models.
Some experts even suggest that Elon Musk’s concerns became stronger after launching his own AI company, xAI, and filing lawsuits against OpenAI and its leadership.
Criticism over Sam Altman’s removal
Satya Nadella also criticised the handling of OpenAI CEO Sam Altman’s sudden removal in 2023. He described the situation as poorly managed and said Microsoft was surprised by the board’s decision.
According to reports, Microsoft was concerned that Altman could leave OpenAI and join a rival AI company after his dismissal. Sam Altman later returned as CEO following internal pressure and employee backlash.
The hearing also featured testimony from OpenAI co-founder Ilya Sutskever, who admitted that the process surrounding Altman’s removal was rushed and handled poorly
The ongoing case has become one of the most closely watched legal battles in the AI industry.