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Microsoft in talks to host Musk's Grok AI on Azure
The move signals strengthening partnership between Microsoft and xAI

Microsoft in talks to host Musk's Grok AI on Azure

May 02, 2025
03:32 pm

What's the story

Microsoft is gearing up to host Elon Musk's Grok AI model on its Azure cloud platform, according to The Verge. Currently, discussions between Microsoft and xAI are ongoing for hosting the Grok model on Azure to make it accessible not just to customers but also to Microsoft's product teams. This move marks a deepening of the relationship between the tech giant and Musk's xAI, even as tensions with OpenAI continue.

Developer access

Grok AI model to be available to developers

The Grok AI model will be available on Azure AI Foundry, a developer-focused platform that offers access to tools and models required to manage applications powered by artificial intelligence (AI). Microsoft is reportedly planning to provide only the infrastructure to run the Grok model, not the servers needed to train future versions.

Legal feud

Musk's legal dispute with OpenAI

Notably, tensions have been escalating between Musk and ChatGPT maker and Microsoft's partner OpenAI. The feud is further complicated by a lawsuit Musk filed against OpenAI and its CEO Sam Altman last year. Musk's lawsuit claimed they abandoned the original goal of developing AI for the benefit of humanity, in favor of corporate gain. A US court has rejected OpenAI's bid to dismiss Musk's fraud allegations, allowing the lawsuit over the company's restructuring to advance.

Hosting details

Exclusive deal to host Grok AI model

It is still unclear if Microsoft will land an exclusive deal to host the Grok AI model or if other cloud providers like Amazon's AWS will also get the chance. This development comes as part of Microsoft's larger plan to lessen its dependency on OpenAI by building its own in-house AI reasoning models.