The Japan Times - Microsoft boss 'proud' of profit-making OpenAI investment

EUR -
AED 4.119836
AFN 72.353425
ALL 90.796811
AMD 404.49661
ANG 2.007791
AOA 1029.817759
ARS 1733.905407
AUD 1.623323
AWG 2.022055
AZN 1.906177
BAM 1.955784
BBD 2.253581
BDT 138.968835
BGN 1.960727
BHD 0.422496
BIF 3354.486834
BMD 1.121806
BND 1.432094
BOB 13.297651
BRL 6.200257
BSD 1.118891
BTN 105.01712
BWP 15.373391
BYN 3.350272
BYR 21987.389703
BZD 2.250381
CAD 1.584865
CDF 2570.056989
CHF 0.920662
CLF 0.027626
CLP 1087.264975
CNY 7.485583
CNH 7.480351
COP 3677.469454
CRC 506.795752
CUC 1.121806
CUP 26.853775
CVE 110.26211
CZK 24.335834
DJF 199.24833
DKK 7.475432
DOP 68.079429
DZD 152.877321
EGP 59.803351
ERN 16.827084
ETB 180.778551
FJD 2.527203
FKP 0.835919
GBP 0.835526
GEL 2.905454
GGP 0.835919
GHS 13.074657
GIP 0.835919
GMD 83.013474
GNF 9912.961093
GTQ 8.549928
GYD 234.563852
HKD 8.800088
HNL 30.072212
HRK 7.593513
HTG 146.658771
HUF 363.068457
IDR 20284.488806
ILS 3.546515
IMP 0.835919
INR 104.935435
IQD 1699.53548
IRR 2133994.524707
ISK 137.208377
JEP 0.835919
JMD 177.74851
JOD 0.795313
JPY 177.506683
KES 145.744578
KGS 98.101677
KHR 4565.961728
KMF 492.472709
KPW 1009.624994
KRW 1501.705015
KWD 0.348724
KYD 0.932492
KZT 502.005792
LAK 25240.625742
LBP 100198.860137
LKR 372.036882
LRD 190.218406
LSL 18.476074
LTL 3.3124
LVL 0.678569
LYD 7.18994
MAD 10.931613
MDL 20.168831
MGA 5154.696566
MKD 61.537079
MMK 2355.45131
MNT 4040.126843
MOP 9.037024
MRU 45.417619
MUR 52.635648
MVR 17.287255
MWK 1940.183737
MXN 20.757946
MYR 4.550492
MZN 71.694922
NAD 18.476467
NGN 1511.117004
NIO 41.080517
NOK 10.591371
NPR 168.024596
NZD 1.992282
OMR 0.431334
PAB 1.118991
PEN 3.850168
PGK 5.036348
PHP 70.539693
PKR 310.28975
PLN 4.389853
PYG 6993.941377
QAR 4.090166
RON 5.344054
RSD 117.600026
RUB 92.829783
RWF 1655.386125
SAR 4.218456
SBD 9.083595
SCR 15.499005
SDG 674.769145
SEK 10.979891
SGD 1.433987
SHP 0.834708
SLE 25.745278
SLL 23523.707401
SOS 639.49464
SRD 42.12607
STD 23219.110943
STN 24.499795
SVC 9.790918
SYP 14585.71602
SZL 18.394354
THB 37.532806
TJS 10.271614
TMT 3.937538
TND 3.373835
TOP 2.701038
TRY 56.35092
TTD 7.588936
TWD 36.944982
TZS 2965.070174
UAH 50.972382
UGX 4581.879907
USD 1.121806
UYU 45.119622
UZS 13421.887498
VES 1006.461826
VND 28718.223285
VUV 134.617914
WST 3.118735
XAF 655.957
XAG 0.021385
XAU 0.000275121943
XCD 3.031736
XCG 2.016583
XDR 0.793175
XOF 655.957
XPF 119.331742
YER 265.316891
ZAR 18.390135
ZMK 10097.597076
ZMW 22.741809
ZWL 361.220945
SSP 6445.686929
MXV 2.332964
  • RYCEF

    0.1000

    19.81

    +0.5%

  • VOD

    -0.2500

    16.33

    -1.53%

  • CMSC

    -0.2800

    20.12

    -1.39%

  • RBGPF

    -2.0000

    65

    -3.08%

  • RIO

    -0.2500

    94.16

    -0.27%

  • BTI

    -1.2000

    54.85

    -2.19%

  • NGG

    -0.3000

    74.94

    -0.4%

  • GSK

    -0.3500

    49.35

    -0.71%

  • BCE

    -0.4200

    20.14

    -2.09%

  • CMSD

    -0.3400

    19.93

    -1.71%

  • BP

    -0.9100

    43.52

    -2.09%

  • RELX

    0.1700

    33.24

    +0.51%

  • BCC

    -0.6200

    75.97

    -0.82%

  • AZN

    -1.9400

    164.21

    -1.18%

  • JRI

    0.0000

    10.77

    0%

Microsoft boss 'proud' of profit-making OpenAI investment
Microsoft boss 'proud' of profit-making OpenAI investment / Photo: Fabrice COFFRINI - AFP/File

Microsoft boss 'proud' of profit-making OpenAI investment

Microsoft CEO Satya Nadella said Monday he was "very proud" of his company's profitable early investment in OpenAI, as he took the stand in Elon Musk's blockbuster lawsuit against the leaders of the AI giant behind ChatGPT.

Text size:

Musk -- an early benefactor of the original nonprofit company -- claims Microsoft knowingly helped OpenAI's creators betray their philanthropic mission and turn the firm into a cash cow.

The trial has laid bare strife within a circle of elite Silicon Valley engineers, investors and executives in the years leading up to the high-profile launch of the ChatGPT chatbot in 2022.

In his lawsuit, Musk accuses OpenAI of betraying its original nonprofit mission and misappropriating his founding donations totaling $38 million to build an empire now valued at over $850 billion.

The Tesla and SpaceX founder is calling for OpenAI to revert to its original status as a nonprofit -- a move that would impact its position in the global artificial intelligence race against Anthropic, Google and China's Deepseek.

OpenAI counters that Musk, who is now an AI competitor with his xAI, is motivated by petty revenge, having stormed off in a huff after failing to seize majority control.

Nadella told a jury in Oakland, California, on Monday that Microsoft's investment in the nonprofit arm, which now owns around a quarter of OpenAI Group PBC -- the firm behind ChatGPT -- had helped create "one of the largest, most well-funded nonprofits in the world."

Musk's attorney said internal Microsoft documents showed the computer behemoth actually had its eye on profit, rather than on helping to nurture a philanthropic AI service, having seen its initial $13 billion investment balloon to be worth $92 billion four years later.

"It has worked out well because we took the risk," said Nadella, of a stake that is now estimated to be worth $135 billion.

"If the pie became larger, obviously the nonprofit would benefit as well with their mission — and that's what in fact it's proven out," he said.

Musk's lawyers suggested Microsoft was instrumental in OpenAI's pivot toward being a commercial company, citing Nadella's 2023 boast: "We have the people, we have the compute, we have the data, we have everything."

That year, when several members of OpenAI's board ousted company founder Sam Altman, citing a tendency to obfuscate, Nadella moved to shore him up.

"I would also try to make sure that Sam and Greg (Brockman, his co-founder) don't create a competing company and they would join Microsoft," he told the court.

The morning after Altman was fired, Microsoft had already established a subsidiary company to welcome them and acquire the equity stakes of any employees who chose to follow them — a move one of the co-founders estimated would have cost approximately $25 billion.

After a five-day crisis, Altman was ultimately reinstated at OpenAI.

- 'Making money' -

Altman is expected to take the stand on Tuesday or Wednesday, ahead of closing arguments later in the week.

An advisory jury is expected to reach a verdict on any actual wrongdoing by the week of May 18.

Judge Yvonne Gonzalez Rogers will then make the final ruling on both liability and remedies after hearing the jury's opinion. She has indicated she will likely follow their advice.

If Gonzalez Rogers ultimately sides with Musk, OpenAI's initial public offering could be jeopardized.

The trial has already heard gripping testimony.

Last week, co-founder Greg Brockman -- whose stake in OpenAI is valued at $30 billion -- came under fire about his 2017 diary entries including one in which he appeared keen on "making money for us."

Musk's lawyers seized on the entries to portray Brockman as a calculating opportunist.

Brockman also told lawyers that Musk physically threatened him in 2017 after Musk was refused absolute control of OpenAI.

Musk on Wednesday announced a major partnership with Anthropic, OpenAI's top rival, to allow it to use the compute capacity at SpaceX's largest data center.

M.Yamazaki--JT