Microsoft CEO Satya Nadella and OpenAI co-founder Ilya Sutskever testified Monday, May 11, 2026 [1], in Elon Musk's lawsuit against the AI startup.

The proceedings center on whether OpenAI abandoned its original non-profit mission to benefit humanity in favor of generating profit. The outcome could redefine the governance of artificial intelligence and the legal obligations of founders when a company's structure evolves.

The testimony took place in Oakland, California, marking the third week of the trial [2]. Musk originally filed the lawsuit in 2024 [3], accusing OpenAI of shifting its focus toward boosting profits instead of adhering to its founding principles [4].

During his testimony, Nadella addressed the relationship between Microsoft and the startup. "Elon Musk never contacted me with concerns about Microsoft's investment in OpenAI," Nadella said [5].

Sutskever, a key figure in the early development of the company's models, also provided testimony as part of the ongoing effort to determine if the company's current trajectory violates its initial agreement. The legal dispute highlights the tension between the rapid commercialization of AI and the safety concerns that originally drove the company's creation.

While the trial examines these foundational goals, some observers suggest the conflict is less about ethics and more about power. One analysis noted that while the fight could pose key questions about AI safety, it is motivated by money, and personal grievance [6].

OpenAI has consistently defended its current structure, arguing that its partnership with Microsoft is necessary to provide the computing power required to develop safe and effective AI systems.

“"Elon Musk never contacted me with concerns about Microsoft's investment in OpenAI."”

This trial serves as a critical test for the 'capped-profit' model used by OpenAI. If the court finds that the company fundamentally breached its original mission, it could create a legal precedent affecting how other AI labs balance commercial viability with public-interest charters. Furthermore, the testimony of Nadella and Sutskever underscores the deep integration between Microsoft's capital and OpenAI's operational control.