Microsoft Adds xAI's Grok Amid Legal Tensions

Microsoft has partnered with Elon Musk's xAI to bring Grok 3 and Grok 3 Mini AI models to the Azure AI Foundry platform, even as xAI is engaged in legal disputes with both Microsoft and OpenAI. These models are hosted and billed by Microsoft, featuring full service-level agreements for enterprise reliability and governance. Recently, Grok faced backlash when an 'unauthorized modification' caused it to reference sensitive topics, prompting xAI to pledge rapid corrections. The Azure-hosted versions of Grok are more restricted, with enhanced governance and customization features. The partnership has caused internal tensions at Microsoft due to its existing close ties with OpenAI, reflecting Microsoft's aim to offer a broad range of AI models. Microsoft also introduced tools for model selection, monitoring, and deployment, as well as plans to expand Foundry’s local deployment capabilities for privacy and cost efficiency.