Microsoft Executives Doubted OpenAI in 2017-2018, Invested $1B to Prevent Move to Amazon

According to court filings monitored by Beating News, emails from over a dozen Microsoft executives, including CEO Satya Nadella, revealed between 2017 and 2018 show internal skepticism about OpenAI before the company’s $1 billion investment. Nadella consulted colleagues on supporting OpenAI’s $300 million funding request, but responses were lukewarm—internal teams saw no collaboration value, and executives worried about backing an organization promoting “machines defeating humans.” CTO Kevin Scott warned the real concern: if Microsoft refused to support OpenAI, “they could turn to Amazon and speak negatively about Azure.” This fear ultimately drove Microsoft’s decision to invest.

Recently, Microsoft’s worst-case scenario materialized. OpenAI signed a $138 billion cloud services agreement with Amazon, which committed to invest $15-50 billion in the company. Nadella is scheduled to testify in the Musk v. Altman case next week.