Microsoft CEO Satya Nadella has addressed a sharp warning from Tesla chief Elon Musk, who claimed that OpenAI could “eat” Microsoft alive following the rollout of GPT-5 across the tech giant’s platforms. The exchange comes as OpenAI’s latest AI model begins making its way into Microsoft’s ecosystem, intensifying the AI race between industry heavyweights.
Earlier in the day, Nadella announced that GPT-5 is now available across Microsoft 365 Copilot, GitHub Copilot, Azure AI Foundry, and the standalone Copilot experience.
“Today, GPT-5 launches across our platforms, including Microsoft 365 Copilot, Copilot, GitHub Copilot, and Azure AI Foundry,” Nadella said in a statement. “It’s the most capable model yet from our partners at OpenAI, bringing powerful new advances in reasoning, coding, and chat, all trained on Azure.”
He highlighted the rapid pace of AI innovation, noting that it has been only two and a half years since he and OpenAI CEO Sam Altman unveiled GPT-4 in Bing. “The pace of progress is only accelerating, and I can’t wait to see what developers, enterprises, and consumers will do with this latest breakthrough,” Nadella added.
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Musk Fires Back with Grok 4 Boast
Shortly after Nadella’s announcement, Elon Musk took to X (formerly Twitter) to make his own assessment of the AI landscape. Replying directly to the Microsoft CEO’s post, Musk wrote, “OpenAI is going to eat Microsoft alive.”
Musk also promoted his own AI venture, xAI’s Grok 4, claiming it remains far more advanced than GPT-5. “Except that Grok 4 Heavy is still the most powerful AI,” he said, doubling down on his competitive stance.
Nadella’s Measured Response
Rather than dismiss Musk’s remark, Nadella responded with a lighthearted yet competitive tone. “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!”
His comment not only acknowledged Musk’s technology but also hinted at potential collaboration, as Grok 4 could eventually run on Microsoft’s Azure platform.
Developers Welcome GPT-5 Integration
The GPT-5 rollout is already drawing interest from developers and tech companies. Cursor AI, an AI-powered code editor built on Visual Studio Code, announced it has integrated GPT-5, calling it “the most intelligent coding model our team has tested.” The company has made GPT-5 access free “for the time being” to encourage widespread testing.
With Microsoft’s deep integration of GPT-5 across productivity, coding, and cloud services, the company is betting big on OpenAI’s latest advancement. The updates promise stronger reasoning skills, improved coding assistance, and more natural conversational abilities, potentially reshaping workflows for both individuals and enterprises.
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The Bigger Picture in the AI Arms Race
This latest sparring between Nadella and Musk highlights the high-stakes battle in AI. Microsoft’s multibillion-dollar deal with OpenAI has made it a top player in using advanced AI at scale, while Musk’s xAI looks to upset that balance through Grok’s aggressive pace of development.
For the time being, both leaders seem sure of their respective strategies—Nadella centring on integration and accessibility, Musk advocating for unadulterated model performance. The battle refuses to abate, and with both GPT-5 and Grok 4 developing further, the next significant jump in AI capabilities may arrive sooner than later.
Conclusion
Satya Nadella’s balanced but firm reply to Elon Musk’s insult is a testament to Microsoft’s strategic foresight in the AI space. While Musk brags about Grok 4’s supremacy, Microsoft’s saturation-level implementation of GPT-5 showcases it’s playing a completely different game—controlling advanced AI to scale to millions of users on productivity, coding, and cloud platforms. If Musk’s prediction comes to pass or Microsoft becomes even more dominant in AI, one thing is for sure: the AI race has just heated up.