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4 ways Microsoft CEO Satya Nadella threw cold water on Elon Musk's case - Business Insider

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9 minute min
Simona Stan
On Monday, the Musk v. Altman trial entered its final stretch, with the parties calling some of their final witnesses — including Satya Nadella, CEO of Microsoft.Elon Musk is asserting at trial that Sam Altman joined in "looting" OpenAI by turning a nonprofit — meant to benefit humanity — into a goliath now worth billions through its relationship with Microsoft.Microsoft is a defendant in the case, and Nadella spent his time on the stand poking holes in Musk's claims. He showed jurors an email in which Musk thanked Nadella for financial and computing support for OpenAI in 2016.Nadella also told jurors that Musk never complained as Microsoft's lucrative licensing and revenue-sharing partnership with OpenAI grew and grew.After Nadella stepped down from the witness stand, the jury heard from Ilya Sutskever, an OpenAI cofounder who left after a power struggle that led to Altman temporarily stepping down as CEO. Nadella, in his own testimony, had called the event "amateur city."Jurors also heard from OpenAI board chairman Bret Taylor, who repeatedly told jurors that the company remained dedicated to saving humanity.Here are four key takeaways from Nadella's testimony:Under questioning by a Microsoft lawyer, Nadella made the point that Musk, who had yet to quit OpenAI, had in 2016 welcomed the beginning of the eventual $13 billion Microsoft-OpenAI partnership that Musk is now challenging.Microsoft took a $15 million loss, Nadella told jurors, by letting OpenAI use its Azure cloud system — at a discount — to power the nascent technology behind ChatGPT.Musk personally thanked Nadella, the CEO testified, in an August 2017 email, after an OpenAI bot defeated an elite pro player in the world championship tournament for the game Dota 2."Very much appreciated," Musk told Nadella in the email, after Nadella congratulated the cofounders on their win. "Will make sure that people know about Microsoft's help."Musk took another hit at trial when a Microsoft lawyer asked Nadella if Musk ever complained to him about the partnership.Nadella said he heard no complaints — not when the revenue-sharing partnership with OpenAI was announced in July 2019, and not even when news broke in 2023 that Microsoft's investment stake had just risen by $10 billion.And Musk knew how to reach out, Nadella told jurors, noting, "We have each other's phone numbers."The testimony could help OpenAI and Microsoft, which have claimed at trial that Musk only began complaining about the partnership when he filed the 2024 lawsuit at the center of the trial.The defendants in the trial — OpenAI, cofounders Altman and Greg Brockman, and Microsoft — are hoping to convince jurors that Musk, who announced his rival chatbot, xAI, later that year, is just a sore loser who is trying to take down his competitors.Nadella was also asked about a trenchant remark he made to New York magazine in the aftermath of Altman's brief November 2023 ouster from the helm of OpenAI, an event that threatened OpenAI's existence at the time."If OpenAI disappeared tomorrow," Nadella told the magazine, "We have all the IP rights and all the capability," he said, referring to Microsoft's intellectual property."We are below them, above them, around them," Nadella said at the time — a statement quickly hailed as "a baller quote" and "a new war slogan" by some of the Microsoft CEO's Silicon Valley fans.Musk's side may try to use the statement to support his contention that he made a $38 million charitable donation to OpenAI during the company's early years, only to see Altman and cofounder Brockman betray their promise to keep the company solely nonprofit. Microsoft and OpenAI are now "a market-paralyzing gorgon," Musk said in the lawsuit at the center of the trial.But on the stand Monday, Nadella defended his "above, below, around" statement, saying he was trying to calm any concerns over Altman's ouster."It goes back to me trying to communicate as clearly as possible to customers that they can count on us," Nadella said — meaning that Copilot and other OpenAI products would continue, regardless of the tumult at OpenAI.Musk's lawyers have made much of Altman's ouster from OpenAI in November 2023 as a sign of just how untrustworthy he was to lead such an important organization.In Nadella's telling, OpenAI's board members failed to provide an explanation for why they took the "drastic step" of firing its CEO. Nadella came to believe Altman's removal was the result of petty grievances. He called it "amateur city.""I just felt like there must have been some jealousies or communications or what have you," Nadella said. "And this is sort of amateur city, as far as I'm concerned."Nadella said he needed to be the adult in the room and bring OpenAI back to becoming a functioning organization by helping Altman return to leadership."By the time, I was very worried that the employees were all going to leave en masse, and that would have been bad for OpenAI, and obviously bad for Microsoft."Correction: May 12, 2026 — An earlier version of this story misidentified the party that called Satya Nadella to the witness stand. He was called by Microsoft, a defendant in the case.
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Economie

'Big Short' investor Michael Burry sells GameStop stake, shorts Palantir stock - Business Insider

Michael Burry says he's given up on GameStop — and ramped up his bet against Palantir."I sold my entire GME position," the investor of "The Big Short" fame wrote in a Monday post on his Substack, adding that it was the first full position he's exited since he pivoted from running a hedge fund to writing online late last year."Any which way I sliced it, the Instant Berkshire thesis was never compatible with >5x Debt/EBITDA, never ok with interest coverage under 4.0x," he wrote."Instant Berkshire" is Burry's idea for GameStop CEO Ryan Cohen to emulate Warren Buffett's Berkshire Hathaway by "creating a portfolio of great companies that generate excess capital or float for additional investment beyond what is required for their growth."Burry wrote in a late April post that GameStop, JD.com, and Molina Healthcare were his three largest positions, and together made up well over a third of his personal stock portfolio.In his late-Monday post, Burry laid out in a graphic why Cohen's $56 billion cash-and-stock offer for eBay is a far cry from the deal he envisioned for GameStop.He estimated the proposed acquisition would burden the combined business with a net-debt-to-profit ratio of 5.2 times, and its yearly profits would only be 2.5 times its annual interest expense.Moreover, he projected that if eBay pushes back and demands $65 billion, then the business could wind up with 7.7 times leverage and a profit-to-interest ratio of 1.2 to 1.5 times.Burry said in an earlier post on Monday that leverage above 5 times was a "knife edge," and 7.7 times was "a level of debt that borders on distressed."In his late-Monday post, Burry said that he "opened an outright short" on Palantir ahead of its Monday earnings, adding that he's "shorting the company because it is worth low double digits at best."Burry said he's not only betting against Palantir because he believes it's overvalued: "I am shorting the business model. I am shorting the entire premise upon which the company rests.

Economie

Officials warn of banking spoof callers draining customers' accounts - Fox Business

Officials are warning customers about banking spoof calls that could trick them into emptying their accounts, with scammers posing as banking or law enforcement officials who claim they are trying to protect the customer’s money. The FBI has described these calls as a growing problem in which customers are convinced to move their money, costing them thousands of dollars, according to ABC 7.

Economie

Charlotte-based Atrium Health targets WakeMed in proposed combination - North Carolina Health News

Atrium Health, the state’s largest hospital system, is seeking to combine with Raleigh-based WakeMed Health & Hospitals, an independent nonprofit with five hospitals and roughly 350 physicians, according to a press release and a document published on the Wake County board of commissioners website Friday afternoon. With the move, Atrium would continue a recent expansion that is reshaping the state’s health care market and raising questions about costs, competition and oversight.

Economie

Apple's diplomatic tariff refund strategy shows why Tim Cook is called the Trump whisperer - Business Insider

Tim Cook is positioning Apple to take advantage of tariff refunds as Donald Trump watches closely.The outgoing Apple CEO said on Thursday during the company's Q2 earnings call that Apple is "following the established processes" to apply for tariff refunds and plans to reinvest any money it recoups into US innovation and manufacturing. Those investments, he added, would be "in addition to our prior commitments in the US."Cook's comments show how Apple is navigating tariffs that have become both a cost issue and a political one — and underscore why he's earned a reputation as the Trump whisperer.Trump raised the stakes around those refunds in an April 21 appearance on CNBC's "Squawk Box." Asked about companies like Apple and Amazon, which had not yet announced plans to pursue refunds, Trump said the companies were "brilliant" if they didn't seek reimbursement, and their decision not to pursue tariff refunds served as evidence that they "got to know me very well.""I'll remember them," Trump added, signaling that the decision could carry political weight.Cook has maintained a notably close working relationship with Trump across both of his administrations, previously securing tariff exemptions for Apple products while pairing those efforts with high-profile US investment commitments.That relationship has helped Cook stand out among tech executives for his ability to navigate Trump's orbit without the same level of public friction, maintaining his direct line of communication with the White House while other tech leaders clashed more openly with the administration, Business Insider has reported.Apple's strategy — securing refunds while emphasizing domestic reinvestment — reflects Cook's careful balancing act between cost management and political optics.Other major companies are already cashing in on their refunds.

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