Microsoft spent years telling regulators it was just an investor in OpenAI, but a federal judge has now cleared the way for a jury to decide whether the company was secretly running the show — and whether its own executives knew the arrangement was unlawful before the first dollar ever moved.

When Satya Nadella was interviewed by Kara Swisher in November 2023, just after OpenAI’s board had fired and rehired Sam Altman over a single weekend, the Microsoft CEO was in a boastful mood. Asked about his company’s relationship with the world’s most valuable AI startup, he offered a quip that has haunted his lawyers ever since: “We are in there. We…

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