Microsoft preparing to host Musk's Grok AI model *

Microsoft is gearing up to host Elon Musk’s Grok AI model on its Azure cloud infrastructure, according to a report from The Verge on Thursday. The tech giant has reportedly been in talks with Musk’s AI startup, xAI, over the past several weeks to bring Grok to its AI ecosystem, making it available both to customers and internal Microsoft product teams.

If finalized, Grok will be accessible via Azure AI Foundry, Microsoft’s platform designed to give developers access to advanced AI tools and models for hosting, running, and managing AI-driven applications. Neither Microsoft nor xAI immediately responded to Reuters’ requests for comment.

This potential collaboration comes amid rising tensions in the generative AI space, particularly between Musk and Sam Altman, CEO of ChatGPT creator and Microsoft partner OpenAI. The two, both co-founders of OpenAI, have been at odds over the startup’s direction. Musk, who left OpenAI in 2018, filed a lawsuit last year accusing Altman and OpenAI of straying from their original mission to develop AI for the benefit of humanity. OpenAI countersued Musk in March 2025.

According to The Verge, Microsoft currently plans to offer hosting capacity for Grok but not infrastructure for training future AI models. It remains unclear whether this partnership will be exclusive or if other major cloud providers — such as Amazon Web Services — might also secure rights to host Grok in the future.

The move aligns with Microsoft’s broader AI strategy to reduce its reliance on OpenAI’s technology. In March, The Information reported that Microsoft had begun testing models from xAI, Meta, and China-based DeepSeek as alternatives for its Copilot AI assistant. In fact, Microsoft swiftly integrated DeepSeek’s R1 model into Azure and its GitHub developer tools shortly after its popularity surged.

Why it matters

If successful, this deal could mark a notable shift in the AI cloud infrastructure market. While Microsoft remains closely tied to OpenAI, the company appears to be hedging its bets by diversifying its AI model offerings. Hosting Grok would not only deepen Microsoft’s foothold in the generative AI space but also strategically position it as a key player in an increasingly competitive and politically charged sector.

Fun fact: Grok is known for its unique, irreverent conversational style, often reflecting Musk’s own voice and humor — a distinct alternative to more neutral AI models like ChatGPT.