The highly anticipated trial between Elon Musk and AI powerhouse OpenAI, alongside its key partner Microsoft, recently entered its critical final stages. Monday’s proceedings brought forth pivotal testimonies from Microsoft CEO Satya Nadella, former OpenAI chief scientist Ilya Sutskever, and current OpenAI chairman Bret Taylor, each shedding new light on the company’s evolution and internal dynamics.
Ilya Sutskever, a figure central to OpenAI’s early days and recent internal turmoil, captured significant attention. He revealed his substantial ownership stake in OpenAI’s for-profit arm, currently valued at approximately $7 billion, making him one of the largest known individual shareholders. This revelation follows earlier testimony from OpenAI president Greg Brockman, who indicated his own shares are worth around $30 billion.
The Heart of the Matter: Loyalty, Leadership, and Billions
Sutskever’s journey with OpenAI began shortly after its inception, a decision that saw him turn down a lucrative $6 million annual offer from Google. He and co-founder Greg Brockman were once “joined at the hip,” a bond that fractured when Sutskever played a key role in Sam Altman’s temporary ousting as CEO in 2023. Sutskever assisted in gathering evidence and drafting a memo to the board, alleging a history of deception by Altman, a move that has since estranged him from both Brockman and Altman.
Testifying without a suit jacket, a noticeable departure from other male witnesses, Sutskever appeared visibly dejected about his diminished involvement with OpenAI, having since left to form a competing AI lab in 2024. “I felt a great deal of ownership of OpenAI,” he stated, emphasizing how he “put my life into it” and genuinely cared for its future, not wanting to see it “destroyed.” His testimony implicitly supported Musk’s argument that Altman might not be the ideal leader for an organization aiming to create artificial general intelligence.
Sutskever further highlighted the significance of the superalignment team he once co-led, dedicated to the safety of future AI models, describing its work as the most crucial “for the long term.” This team, however, was disbanded in May 2024, shortly after his departure. Despite this, Sutskever’s testimony also bolstered OpenAI’s defense by stating that Musk never negotiated any specific commitments when funding the initial nonprofit.
Musk’s core lawsuit hinges on the claim that such commitments existed and were violated when OpenAI transitioned to a lucrative for-profit model. Sutskever explained that immense funding was essential to build a computer on par with the human brain, and while philanthropic efforts had “reasonable success,” the for-profit path became the consensus. He illustrated the scale difference to US District Judge Yvonne Gonzalez Rogers, comparing funding levels to the difference between an “ant and a cat,” stressing, “If there’s no funding, there is no big computer.”
Microsoft’s Role and Nadella’s Perspective
Much of Monday’s proceedings revisited the dramatic events of Altman’s 2023 ouster and reinstatement. Microsoft CEO Satya Nadella candidly described the board’s decision to fire Altman as “amateur city,” admitting he “never got clarity” regarding the alleged lack of candor. Nadella also confirmed discussions around 14 potential board members for OpenAI post-Altman’s return, with Microsoft vetoing at least two, yet he insisted Microsoft’s input remained merely “suggestions.”
Musk’s lawsuit also accuses Microsoft of actively pushing OpenAI towards a revenue-generating model, diverging from its original nonprofit mission. Nadella testified that Microsoft initially supported OpenAI with discounted cloud computing, but this became unsustainable “once the bill started going up.” A for-profit arm, allowing Microsoft to invest for potential financial returns, became a more “palatable” solution.
As the “bills kept rising,” Nadella’s urgency for a new agreement grew evident. In a 2022 email to his lieutenants, he exclaimed, “Microsoft will lose 4 bil next year!!!” regarding the OpenAI partnership, demanding “know-how” from the startup. He unequivocally stated, “If we are going to spend this kind of money and not have control of destiny, it makes no sense.” Text messages from early 2023 showed Nadella urging Altman to launch ChatGPT subscriptions “sooner is best,” and inquiring about sign-ups weeks later, underscoring Microsoft’s focus on monetization.
The partnership has proven highly beneficial for Microsoft, which has generated $9.5 billion in sales from OpenAI as of March 2025. This includes an agreement where OpenAI shares 20% of its revenue with the tech giant. Nadella defended this structure as fair, given Microsoft’s early risks and suggesting its claim on profits would be even larger if OpenAI were a traditional company. OpenAI chairman Bret Taylor concluded Monday’s testimony by offering a glowing review of Altman’s leadership, setting the stage for Altman’s own testimony scheduled for Tuesday.
Source: Wired – AI
