Musk vs OpenAI trial: Co-founder Sutskever documented a year of Altman's 'pattern of lying' - Nadella feared becoming 'the next IBM'
What it really says
On May 11, 2026, the opening day of the third week of the Musk v. OpenAI trial at the federal courthouse in Oakland, two key figures of the AI industry testified. Microsoft CEO Satya Nadella stated that Elon Musk never contacted him to raise concerns about Microsoft's investment in OpenAI violating any terms. Nadella pushed back on the characterization that Microsoft's funding was charitable - it was commercially motivated from the start. An internal email was presented in which Nadella, ahead of the $10 billion investment in 2022, wrote that he did not want Microsoft to become 'the next IBM' while OpenAI became 'the next Microsoft.' Nadella was also never given a full explanation for Altman's firing in November 2023; he was pulled out of a meeting and informed only then. After Nadella, Ilya Sutskever took the stand - a co-founder of OpenAI and renowned AI researcher. Sutskever testified that he had spent approximately one year gathering evidence of a 'consistent pattern of lying' by CEO Sam Altman. He prepared a document at the board's request documenting Altman's dishonesty, and confirmed that Altman systematically undermined and pitted executives against one another. Sutskever said he voted to fire Altman. After the firing, he avoided the internet and consequently missed an offer from Microsoft to hire all OpenAI employees. The remaining board even held discussions with competitor Anthropic about a potential merger. Sutskever also revealed that his OpenAI stake is worth approximately $7 billion and that Google had offered him $6 million annually to keep him from leaving. The trial is expected to continue through May 21; Sam Altman is expected to testify this week. Musk is seeking $130 billion in damages.
Our assessment
These testimonies reveal a troubling picture of the internal dynamics at OpenAI - the company that has developed the world's most influential AI with ChatGPT. When a co-founder and leading AI researcher like Sutskever spends a year documenting evidence of systematic lying by the CEO, it raises fundamental questions about leadership culture. The concern that the world's most powerful AI technology is controlled by a non-transparent organization gains substance through these testimonies. However, context matters: Sutskever is not a neutral witness. He voted for Altman's removal, which was later reversed, and holds a $7 billion stake - his judgment of Altman is not free from personal involvement. Nadella's testimony that Musk never directly raised concerns weakens Musk's position. Above all, the trial shows that the question of who controls the most powerful AI systems and whether profit interests or safety concerns dominate is being decided not in a lab, but in a courtroom. That in itself is remarkable.
Relevance for Germany
The trial affects Germany indirectly but significantly. OpenAI is the dominant provider of AI models used by thousands of German companies, government agencies, and educational institutions. Microsoft, through Azure the most important cloud partner for German businesses, is deeply invested in OpenAI. If the leadership culture at OpenAI is as dysfunctional as Sutskever's testimony suggests, it has implications for the reliability of this technology. The EU has introduced transparency obligations for AI providers through the AI Act - this trial demonstrates why such regulation is necessary. For the German debate on digital sovereignty, the case underscores the dependency on American AI providers and the limited ability to influence their corporate governance.
Fact check
The facts about Nadella's testimony (no contact from Musk, 'next IBM' email, no explanation for Altman's firing) are consistently reported by CNBC and GeekWire. Sutskever's statements (year-long evidence gathering, 'pattern of lying', $7 billion stake, Google's $6 million offer) are documented by Reuters and Bloomberg. Musk's $130 billion claim has been documented since trial began. Limitation: these are witness testimonies in an ongoing court case. Both Musk's and OpenAI's sides are pursuing strategic interests. Sutskever's interpretation of Altman's behavior as 'lying' is his subjective assessment; Altman is expected to present his perspective on Tuesday.
Source
- • CNBC 11.05.2026: OpenAI trial - Nadella says Musk never raised concerns (cnbc.com/2026/05/11/microsoft-ceo-satya-nadella-musk-altman-trial.html)
- • GeekWire 11.05.2026: Satya Nadella was worried about Microsoft being the next IBM in OpenAI deal (geekwire.com/2026/musk-v-altman-satya-nadella-was-worried-about-microsoft-being-the-next-ibm-in-openai-deal/)
- • Reuters/MarketScreener 11.05.2026: Ex-OpenAI exec Sutskever says he spent a year gathering proof of alleged Altman dishonesty (marketscreener.com/news/ex-openai-exec-sutskever-says-he-spent-a-year-gathering-proof-of-alleged-altman-dishonesty-ce7f5bd9dc81f225)
- • Bloomberg 11.05.2026: Ilya Sutskever Says His OpenAI Stake Worth About $7 Billion (bloomberg.com/news/articles/2026-05-11/sutskever-says-his-openai-stake-worth-about-7-billion)