Microsoft is preparing to host Elon Musk’s Grok AI model through its Azure cloud service, according to a report by The Verge citing a source familiar with the plans. The tech giant has been in discussions with Musk’s AI startup, xAI, in recent weeks to make the Grok model accessible to Azure customers as well as Microsoft’s internal product teams.
Grok is expected to be listed on Azure AI Foundry, Microsoft’s platform that offers developers access to various AI models and tools to host, run, and manage AI-driven applications, the report added.
Microsoft and xAI have not yet commented publicly on the developments, Reuters reported.
Potential Shifts in Microsoft’s AI Strategy
The move comes at a time of rising tensions between Musk and OpenAI’s CEO, Sam Altman. Musk, a co-founder of OpenAI who departed in 2018, has been critical of the company’s trajectory and has sued OpenAI and Altman, alleging a deviation from its original mission to create AI for the benefit of humanity. OpenAI filed a countersuit against Musk last month.
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According to The Verge, Microsoft is planning only to host the Grok model on Azure, without providing servers for training future versions. It remains unclear whether Microsoft will secure exclusive hosting rights or if other cloud giants like Amazon Web Services (AWS) could also host Grok in the future.
Microsoft Expands AI Model Access on Azure
Microsoft has been actively diversifying its AI portfolio beyond OpenAI. The company has developed in-house AI reasoning models and is reportedly testing models from xAI, Meta, and China’s DeepSeek as potential additions or replacements within its Copilot AI ecosystem.
In March, Microsoft made DeepSeek’s R1 model available through Azure and GitHub tools for developers, shortly after it gained popularity.
