Microsoft is preparing to host Elon Musk’s Grok AI model on its Azure AI Foundry platform, according to a reliable source familiar with the initiative. Discussions between Microsoft and Musk’s company, xAI, have reportedly progressed, with plans to make Grok accessible to developers and potentially integrate it into Microsoft’s own products. If finalized, this move would mark a significant development in Microsoft’s AI strategy and could increase friction with its close partner, OpenAI. Azure AI Foundry offers tools and services for developers to build and deploy AI applications. Hosting Grok on the platform would allow users to leverage the model for various functions, expanding Azure’s AI offerings.
Microsoft’s CEO Satya Nadella is said to be pushing for the inclusion of Grok, continuing his goal to position Azure as the leading platform for hosting diverse AI models. Microsoft has recently added support for models from multiple AI companies, including DeepSeek, and is reportedly willing to host popular tools regardless of their origin. However, there’s no indication that Microsoft will also handle the training of Grok, as Musk previously moved xAI’s training in-house after withdrawing from a potential $10 billion deal with Oracle.
The move to host Grok could create internal unease due to Musk’s controversial involvement with the Department of Government Efficiency (DOGE), though he has announced plans to step back from that project soon. The announcement of Grok’s availability on Azure might come during the Microsoft Build conference scheduled for May 19. Meanwhile, Microsoft’s relationship with OpenAI is reportedly becoming strained. The two companies have faced challenges around access to models and infrastructure needs, and tensions have grown more public amid legal disputes and strategic differences. Nadella’s hiring of Mustafa Suleyman and efforts to create independent AI models have not yet yielded notable results, further solidifying Microsoft’s current dependence on OpenAI.
