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OpenAI trial: What Elon Musk said about Microsoft during the hearing
On the third day of Elon Musk's lawsuit against OpenAI, Musk testified and questioned Microsoft’s role in OpenAI’s development of AGI, describing the investment as risky and accusing Microsoft of potential influence over AGI. Separately, OpenAI and Microsoft announced a revised partnership ending the exclusive license and changing revenue and cloud terms.
Why It Matters
The proceedings highlight concerns about corporate influence over AGI and mark a major restructuring of OpenAI-Microsoft licensing and revenue arrangements that could affect access to OpenAI’s technology across cloud providers.
Timeline
5 Events
Revised revenue and chip-supply terms under the new deal
April 30, 2026
Under the new terms, OpenAI continues to pay Microsoft a 20% revenue share through 2030, but it is capped and no longer tied to OpenAI's milestones; Microsoft stops paying a revenue share to OpenAI entirely. The two companies also continue to collaborate on chip development to reduce dependence on Nvidia.
OpenAI and Microsoft announce revised partnership ending exclusive license
April 30, 2026
OpenAI and Microsoft announced a revised partnership that ends Microsoft’s exclusive license to OpenAI’s technology. Microsoft remains OpenAI’s primary cloud partner; OpenAI can now offer products on any cloud, though Azure remains the default unless Microsoft acts otherwise. The license term runs through 2032 and is now non-exclusive.
Musk describes partnership as a 'bait and switch' and warns of corporate control of AGI
April 30, 2026
Musk described Microsoft’s partnership with OpenAI as a 'bait and switch' that risked corporate control of AGI, and noted concerns about Microsoft’s influence over OpenAI’s direction. He is seeking up to $140 billion in punitive damages from both OpenAI and Microsoft.
Musk criticizes Microsoft’s role and questions control over AGI
April 30, 2026
Musk said he was a 'fool' for investing in OpenAI and suggested Microsoft could try to steer AGI development, questioning whether Microsoft should control artificial general intelligence and noting that Microsoft would invest billions only if they expect a return.
Trial enters its third day as Musk returns for a second testimony
April 30, 2026
The trial in Elon Musk's lawsuit against OpenAI entered its third day, with Musk returning to the court to give his second testimony.