Microsoft has announced a high-profile partnership with Elon Musk’s AI venture, xAI, to host its controversial chatbot Grok on the Azure cloud platform. The move, unveiled at Microsoft’s annual Build conference, comes amid recent criticism of Grok for spreading conspiracy-tinged political responses.
The chatbot will now operate on Microsoft’s Azure AI Foundry, which also powers models from OpenAI, Meta, and other major players. Musk acknowledged Grok’s missteps but emphasized xAI’s commitment to transparency and factual grounding. “Mistakes will happen, but we’ll always be upfront about them,” he said in a recorded conversation with Microsoft CEO Satya Nadella.
Also Read: Microsoft Reveals AI Agents That Can Remember Past Interactions
Grok recently came under fire for disseminating politically charged misinformation, particularly regarding South Africa—a topic Musk has publicly commented on before. xAI attributed the responses to an “unauthorised modification” and announced a series of reforms, including public system prompt disclosures and the creation of a 24/7 oversight team.
Musk’s comments on transparency were seen by some as a subtle jab at OpenAI, the company he helped co-found but later distanced himself from. OpenAI CEO Sam Altman also appeared at the event, where he and Nadella praised the growing utility of AI tools like GitHub Copilot, which now supports over 15 million developers worldwide.
The Grok-Azure integration marks a deeper push by Microsoft to expand its AI ecosystem, even as the company navigates internal restructuring. The announcement follows reports of widespread layoffs affecting around 6,000 employees globally, reflecting Microsoft’s strategic pivot towards AI-driven operations.
