Following the full integration of OpenAI's GPT-5 across Microsoft's suite of applications, Microsoft CEO Satya Nadella has responded to Elon Musk's warning that "OpenAI is going to eat Microsoft alive". Nadella addressed Musk's comment with a measured but competitive tone, while also welcoming Grok 4 on the Azure cloud platform.

Musk's warning followed Nadella's announcement of GPT-5 integration into Microsoft 365 Copilot, GitHub Copilot, Azure AI Foundry, and the Copilot app. Nadella hailed GPT-5 as a breakthrough in reasoning, coding, and conversational capabilities, emphasizing that it was trained and optimized on Microsoft's Azure cloud infrastructure.

Musk, CEO of xAI, countered by claiming that his company's Grok 4 Heavy model had already surpassed GPT-5's intelligence and teased the upcoming release of Grok 5 before the end of 2025, describing it as "crushingly good". Musk also announced that Grok's new Imagine feature—designed for video and image generation—would be free to all users.

Nadella responded to Musk's jab with a post on X, formerly Twitter, stating, "People have been trying for 50 years and that's the fun of it! Each day you learn something new, and innovate, partner, and compete. Excited for Grok 4 on Azure and looking forward to Grok 5!". This response highlights Microsoft's long-standing commitment to innovation in the AI space and its willingness to embrace competition.

Microsoft's journey in AI spans decades, with early progress in machine learning and natural language processing laying the foundation for today's AI era. The company's embrace of change and focus on the future have been key to its success. Microsoft Research, established in 1991, has played a crucial role in researching and developing AI applications.

Key milestones in Microsoft's AI development include the launch of Bing with natural language capabilities in 2009 and the release of Azure AI Foundry in 2015, which provided developers with intelligent technologies for building smarter apps. In 2020, Microsoft released Turing-NLG, a large language model with 17 billion parameters, and introduced a new supercomputer hosted in Azure for OpenAI.

Microsoft's partnership with OpenAI, which began in 2019, has been instrumental in driving AI innovation. Microsoft has invested over $13 billion in OpenAI, gaining access to cutting-edge AI research, technology, and talent. The partnership has allowed Microsoft to integrate OpenAI's AI models into its products and services, such as Microsoft 365 Copilot and GitHub Copilot. Microsoft has rights to OpenAI IP for use within their products. The OpenAI API is exclusive to Azure.

The collaboration has not been without its complexities. As OpenAI began offering AI services to businesses, Microsoft has become a direct competitor. Recent reports suggest that OpenAI may be seeking to restructure its relationship with Microsoft, potentially leading to increased competition between the two companies.

Despite the potential for increased competition, Microsoft remains committed to its AI-driven future. Nadella's response to Musk's warning underscores Microsoft's confidence in its ability to innovate and compete in the rapidly evolving AI landscape. The company's 50-year journey in technology, combined with its strategic partnership with OpenAI, positions it as a major player in shaping the future of AI.