Microsoft CEO Satya Nadella defends OpenAI’s for-profit status, shares past nerves over Altman ouster

Microsoft CEO Satya Nadella testified in Oakland, California, during Elon Musk’s lawsuit against OpenAI, defending the AI lab’s shift to a for-profit structure. Nadella argued that OpenAI’s mission would be harder to achieve without commercial backing, as the company aims to develop advanced AI technologies. He acknowledged Microsoft’s potential $92 billion return on its $13 billion investment, with OpenAI’s valuation reaching $852 billion in March, giving Microsoft a $135 billion stake. Nadella addressed Musk’s claims that OpenAI betrayed its founding principles by prioritizing profit, stating that the company’s mission remains central. He also revealed past concerns over Sam Altman’s sudden ouster in November 2023, fearing Altman might join a rival. Microsoft secured a 27% ownership stake in OpenAI after its restructuring, despite early skepticism from executives in 2018 about the company’s progress in artificial general intelligence. OpenAI co-founder Ilya Sutskever testified that the company’s mission transcends its legal structure, denying any promise to Musk that OpenAI would remain non-profit. He described Musk’s push for majority control as aggressive, citing conflicts with his other business commitments. Sutskever also expressed discomfort with near-merger talks involving Anthropic during Altman’s ouster, noting former board member Helen Toner’s view that allowing OpenAI’s destruction aligned with its mission. Emails from 2018 showed Microsoft executives were cautious about funding OpenAI due to perceived slow progress. The trial continues as Musk seeks up to $180 billion in damages and a court order to revert OpenAI to non-profit status, alleging Microsoft’s involvement in a breach of trust. Nadella reaffirmed Microsoft’s pride in its early investment, emphasizing its role in supporting OpenAI’s growth when others hesitated.