
- Microsoft has announced that it will host Elon Musk's Grok 3 AI model on its Azure AI Foundry service.
- Grok 3 and Grok 3 mini will now be available to Azure customers with full service-level agreements.
- This could spark tensions between Microsoft and Open AI, given the history between Sam Altman and Elon Musk.
Elon Musk’s xAI revealed its most powerful AI model at the start of the year, called Grok 3, which rivaled Microsoft’s Copilot. But it seems like, in a weird turn of events, both Microsoft and xAI are coming together, as the former announces that it will be hosting Grok 3 and Grok 3 mini on Microsoft’s Azure AI Foundry service.
This news comes from Microsoft’s Build Developer conference today, where the company announced that it will be hosting Grok AI. This means that the company will start offering Grok 3 to its own internal team and customers of the Azure AI Foundry.

According to Microsoft, “These models will have all the service level agreements (SLAs) Azure customers expect from any Microsoft product”. This change comes as part of Microsoft CEO Satya Nadella’s plan to turn the company into a hosting provider for emerging and popular AI services, as per the sources of The Verge.
Back in January, the CEO asked its engineers to test and push out DeepSeek R1 on its Azure AI Foundry. Now, it’s time for Grok. However, given OpenAI CEO Sam Altman’s history with Elon Musk, it might lead to some internal issues within Microsoft. Whatever the case may be, it seems like a win-win situation for Azure AI Foundry users.