OpenAI lawsuit, Microsoft CEO testifies in court, Altman and Musk dispute intensifies over core partnership with AI giants

Odaily Star Daily News: In the lawsuit involving OpenAI, Satya Nadella appeared and testified in the U.S. Federal Court in Oakland, California, in his capacity as Microsoft CEO. The case centers on escalating legal disputes over OpenAI’s non-profit structure and its path toward commercialization. The lawsuit was filed by Musk in 2024, who accused Microsoft of “assisting and promoting violations of charitable trust obligations” during OpenAI’s transition from a non-profit organization to a commercial entity. Microsoft has made strategic investments in OpenAI since 2019, and by 2023 its cumulative investment totaled about $13 billion, making it one of OpenAI’s most important external backers.

During the trial, Satya Nadella reviewed Microsoft’s early collaboration with OpenAI and noted that the two sides had already built deep technical and computing-power cooperation before the release of ChatGPT. Musk, in prior testimony, said that Microsoft’s additional, $10 billion-level investment in OpenAI in 2023 was a key turning point for his decision to bring the lawsuit, adding that the scale of this investment changed OpenAI’s original non-profit-oriented structure. In court, Musk said, “We’re concerned that they are turning a charitable organization into a commercial tool.” He also questioned Microsoft’s potential leading role in the development of artificial general intelligence (AGI), and pointed out that its deep ties with OpenAI could affect the industry’s competitive landscape.

The case is still under review, and disputes involving OpenAI’s governance structure, its non-profit status, and control over the AI industry are expected to continue to intensify. (CNBC)