In a bizarre twist of corporate drama, Elon Musk is simultaneously suing Microsoft for AI monopoly practices while partnering with them to host Grok AI models on Azure’s platform. The May 2025 announcement at Microsoft’s Build conference featured Musk and Nadella in an oddly chummy pre-recorded chat, completely ignoring their ongoing legal battles. Money talks, apparently. This strange alliance could reshape the AI landscape, even as lawyers duke it out in court.
In a stunning reversal that has Silicon Valley buzzing, Elon Musk’s xAI is joining forces with Microsoft to bring Grok AI models to the Azure cloud platform – even as Musk continues his legal assault against the tech giant.
The unlikely partnership, announced at Microsoft’s Build developer conference on May 20, 2025, will see Grok 3 and Grok 3 mini models hosted directly on Azure AI Foundry. Talk about keeping your enemies closer. Microsoft will handle billing and provide full service level agreements, just like any other Azure product. The platform is specifically designed to help developers build and customize AI applications.
Microsoft and Musk put aside their feuds as Grok joins Azure, proving that even tech’s biggest rivals can play nice for profit.
The announcement came complete with a cozy pre-recorded chat between Musk and Microsoft CEO Satya Nadella, who reminisced about Musk’s days as a Windows developer and Microsoft intern. No mention of those pesky lawsuits where Musk accused Microsoft of forming an AI monopoly with OpenAI. Awkward. The conference was briefly disrupted when protesters challenged Microsoft about its AI services in Israel.
Microsoft’s strategy is crystal clear: money talks. The tech giant is stuffing Azure AI Foundry with models from everyone – OpenAI, Meta, Mistral, you name it. And now Grok joins the party, which Musk boldly claims is “the most powerful AI service by every metric.”
The timing is particularly spicy, given that Microsoft and OpenAI are reportedly renegotiating their multibillion-dollar partnership. Adding Musk’s Grok to the mix? That’s like inviting your ex’s arch-nemesis to dinner.
Recent hiccups with Grok haven’t dampened the deal’s significance. Sure, xAI had to scramble to fix their chatbot after it wouldn’t shut up about South African racial politics (blame it on an “unauthorized modification”), but that’s ancient history now.
The tech world’s newest odd couple seems determined to make this work, despite the legal drama swirling in the background. Musk is still suing Microsoft over OpenAI disputes and alleged racketeering activities, but hey – business is business. Sometimes you just have to sue and collaborate at the same time.
