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One of the tech sector’s biggest names recently announced something that experts believe has significant implications for Elon Musk.
This development has nothing to do with Tesla or SpaceX. It concerns Musk’s other company, xAI, which doesn’t typically attract as much attention as its predecessors.
But the artificial intelligence (AI) startup is in full focus today, after Microsoft (MSFT) announced a major development that could help usher in an important change.
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Microsoft has been highly focused on expanding its AI lineup lately, even as it significantly scales down its workforce. However, the big tech leader recently revealed that it will expand its roster by partnering with multiple AI startups, just not the one that it has famously backed for years.
Microsoft may be sending a clear message to an AI leader
This week, thousands gathered in Seattle, Washington, for the annual Microsoft Build conference, a highly anticipated event. During the four-day conference, developers and other tech professionals learn about the company’s latest advancements regarding platforms such as Office and Azure, its public cloud platform.
Related: Microsoft has a secret weapon in war against Google, Amazon
During this year’s conference, attendees learned something unexpected when Microsoft revealed that it will expand the list of AI models available for Azure users to include xAI’s Grok 3. Rolled out earlier this year, the large language model (LLM) has been described as feeling like a step toward “unsettlingly human-like intelligence” and having better speed and logic than its competitors.
This could be a major step toward something else for Microsoft. The company is currently fighting to become the tech sector’s go-to marketplace where developers can build and deploy AI applications, a title for which rivals such as Amazon and Google are actively competing.
Integrating Grok 3 and Grok 3 mini could easily draw more users to Microsoft’s platform, given the model’s popularity. However, this decision signals something important. The company seems to be trying to decrease its reliance on OpenAI, the maker of ChatGPT, which Microsoft has heavily invested in for years.
Microsoft is OpenAI’s top backer, having invested more than $13 billion into the AI research startup since 2019. Yet tensions have been rising between the two companies recently, as OpenAI has begun selling AI products for enterprise customers, making it a direct Microsoft competitor.
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