Microsoft (MSFT) Considers Hosting Grok AI on Azure, Potential Tensions with OpenAI

Author's Avatar
May 01, 2025
Article's Main Image

According to reports, Microsoft (MSFT, Financial) plans to support Elon Musk's Grok AI model by hosting it on its Azure cloud service. Discussions have already taken place with Grok's developer, xAI, to make it accessible to both Microsoft clients and internal teams. If successful, Grok would be available through Azure AI Foundry.

This potential move could stir internal debate and heighten tensions with Microsoft's existing partner, OpenAI. The collaboration indicates Microsoft's continued ambition to strengthen its AI capabilities and offerings. However, the decision to host Grok could affect its relationship with OpenAI, a key collaborator in AI development.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.