Microsoft delivers Elon Musk’s Xai model to cloud customers

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Microsoft is making cloud computing customers available to use the artificial intelligence model of Elon Musk startup Xai with its latest cooling signal with Technology Geiant’s ChatGPT maker Openai.

The Seattle-based group said Monday that developers using the Azure AI Foundry platform can purchase the latest Xai models under the same conditions as if they were purchasing licenses for Openai’s equivalent products.

This move means that users will receive “service parity” such as priority access to cloud computing power, whether they use OpenAI or XAI models.

Openai’s biggest backer, Microsoft is increasingly hoping to unravel itself from San Francisco-based Start Up, led by Sam Altman. The move comes as Musk is in the midst of a fierce legal dispute with Altman over his open plan to convert to a for-profit corporation.

“What we’re trying to do is simplify the customer’s purchasing experience and user experience so that it looks like an Openai model,” said Eric Boyd, corporate vice president of Microsoft’s Azure AI platform.

Since 2019, Microsoft has invested more than $13 billion in Openai. However, tensions are rising among the groups due to the ChatGPT manufacturers’ demand for more computing power from Microsoft.

Offering the Xai model in the same commercial terminology as Openai generates interest throughout the tech industry, given the animus among the chief executives of rival groups.

“There’s no strong opinion on which models of customers will use it. We want them to use Azure,” Boyd said. “If (the customer) is finding what they need on Azure, we’ll be very pleased with the outcome.”

He added: “We have a great partnership with Openai.

The software giant also said on Monday that it will rank AI models to allow customers to choose “top performance” options for specific tasks.

Microsoft already offers over 1,900 models to developers from many companies, including freely available “open” models developed by China’s Deepseek, Meta, French Start-Up Mistral and others.

Separately, Microsoft will tell developers this week at a build conference in Seattle that it is adopting a startup human model context protocol supported by Amazon. MPC, also used by Google and Openai, standardizes the way so-called AI “agents” communicate and quickly becomes an industry norm.

The move shows rival high-tech groups willing to work together in key areas of AI development, creating a pathway for stronger digital assistants to interact with each other and complete tasks.

The build meeting shows that Microsoft is increasingly building its own path in the race to commercialize generated AI.

Microsoft CEO Satya Nadella distances herself from an ambitious vision for artificial intelligence that systems are common to those of ordinary people, and from an ambitious vision for artificial intelligence that systems match or outweigh human capabilities.

Instead, Nadella claims that key models are less valuable than being able to “commoditize” or sell corporate AI-enabled applications and digital assistants built on top of these programs.

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