xAI’s Grok AI model is reportedly about to be hosted by a notable backer of one of Elon Musk’s bitter enemies.
The Verge, citing a trusted source familiar with the plans, reported that Microsoft is getting ready to host Elon Musk’s Grok AI model.
Microsoft of course is a big backer of OpenAI from its startup days, and has sunk billions of dollars into the San Francisco-based AI pioneer over the years.
Microsoft hosting
In return Microsoft uses OpenAI technology for most of its AI offerings (although it was recently revealed that is working to bring internal and third-party models into its enterprise AI offering, 365 Copilot).
OpenAI also widely utilises Microsoft’s Azure cloud services.
Now according to the Verge, Microsoft has been instructing engineers working on its AI infrastructure to get ready to host Elon Musk’s Grok AI model.
In recent weeks Microsoft has reportedly been in discussions with xAI to host the Grok AI model and make it available to customers and Microsoft’s own product teams through the Azure cloud service.
If the deal proceeds, Grok will apparently be available on Azure AI Foundry, Microsoft’s AI development platform that gives developers access to AI services, tools, and pre-built models in order to build AI applications and agents.
This will allow developers to tap into Grok and use it within their apps, and for Microsoft to potentially use the AI model across its own apps and services, the Verge reported.
Microsoft reportedly refused to comment for this story.
OpenAI tensions?
But why is it noteworthy that Microsoft could be about to host Elon Musk’s Grok AI?
Well it’s because Elon Musk is currently pursuing something of a legal vendetta against OpenAI. It remains to be seen how well this news (if it happens) will be received by OpenAI CEO Sam Altman.
Musk was an early OpenAI investor but had stepped away in 2018 and now runs his own AI firm (xAI).
And recently there have been media reports of growing tensions between OpenAI and Microsoft.
Musk vendetta
Elon Musk had first sued OpenAI in March 2024 for breach of contract, alleging the firm was no longer following its original non-profit principles.
OpenAI then issued a very public and point-by-point rebuttal of Musk’s allegations, by directly comparing them to Musk’s own words within his own emails.
Musk abruptly withdrew his original lawsuit without explanation in June 2024, a day before a judge was due to rule on OpenAI’s request for it to be dismissed.
But in August 2024 Musk filed a “more forceful” lawsuit, and a month later OpenAI confirmed it was restructuring itself into “for-profit benefit corporation”.
In December 2024 Elon Musk asked a federal court for an injunction to stop OpenAI from converting into a full for-profit business.
A further twist was added in February 2025, when Elon Musk and a group of investors offered about $97.4 billion to buy the non-profit behind OpenAI.
OpenAI CEO Sam Altman immediately publicly stated Musk’s offer was “ridiculous”, and “the company is not for sale”.
Elon Musk then claimed he would withdraw his $97.4 billion offer to buy the non-profit behind OpenAI, but only it drops its plan to convert into a for-profit operation.
In March 2025 a federal judge denied Elon Musk’s request for a court order blocking OpenAI from converting itself to a for-profit company, but said she could expedite a trial to consider Musk’s claims.
She offered to hold a trial later this year, but the trial has been pushed back to March 2026.
In April 2025 OpenAI counter sued Elon Musk, and alleged that “Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit.”
