Satya Nadella reveals Microsoft's $25B plan to absorb OpenAI team after Sam Altman firing

Microsoft CEO Satya Nadella testified in federal court in Oakland, California, that the company had prepared a $25 billion plan within 24 hours to absorb OpenAI’s top leadership—Sam Altman, Greg Brockman, and other key employees—following Altman’s sudden firing on November 17, 2023. The plan involved creating a new Microsoft-controlled subsidiary to hire the team, matching their salaries, stock compensation, and equity. However, the proposal was never implemented after Altman was reinstated as OpenAI CEO a few days later. Nadella described Altman’s firing as ‘amateurish’ and criticized OpenAI’s board for failing to provide clear reasons, including potential financial misconduct or ethical violations. Microsoft, OpenAI’s largest investor, received no satisfactory explanation beyond Altman’s alleged lack of transparency in communications. The testimony also revealed Microsoft’s attempt to influence OpenAI’s board restructuring post-crisis. Microsoft suggested 13–14 candidates for the new board but admitted it had no formal power to enforce its recommendations. Nadella opposed certain nominees, like Diane Greene and Bing Gordon, due to their ties to Google and Amazon, respectively. Despite Microsoft’s $25 billion investment, Nadella acknowledged the company’s limited control over OpenAI’s nonprofit governance structure. The court case, part of Elon Musk’s lawsuit against OpenAI, provided insight into the tense power dynamics between the two organizations during the leadership turmoil.