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Microsoft to offer Elon Musk’s xAI models to cloud customers

  • Microsoft broadcast a pre-recorded video featuring CEO Satya Nadella and Elon Musk at its Build conference in Seattle on Monday, May 19, 2025.
  • The event took place shortly after Microsoft implemented global workforce reductions, cutting nearly 3% of its employees—including hundreds of software developers based in the Puget Sound area of Washington—totaling around 6,000 job losses.
  • During the conference, Microsoft announced it would host xAI’s Grok 3 and Grok 3 mini AI models on its Azure AI Foundry platform, adding data integration, customization, and governance features beyond xAI’s own API.
  • XAI fixed Grok after a May 14 unauthorized code change caused it to produce unsolicited commentary on white genocide claims in South Africa, which the company attributed to a rogue employee’s modification.
  • This partnership expands Microsoft’s AI model offerings alongside OpenAI and other providers, despite Musk’s legal disputes with Microsoft and OpenAI and recent protests at the conference over Microsoft’s AI services used by the Israeli military in Gaza.
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Živě.cz broke the news in on Monday, May 19, 2025.
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