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Microsoft Strikes Deal with Musk to Host Grok AI

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Days after the chatbot went haywire with its remarks about "white genocide" in South Africa, Microsoft said on Monday that Grok from Elon Musk's xAI will now be hosted on its cloud servers.

Musk stated that his company's models "aspire to truth with minimal error" at a Microsoft-hosted event, but that "there's always going to be some mistakes that are made."

Last week, the Grok chatbot sparked outrage by responding to irrelevant user instructions with unsupported right-wing propaganda about alleged white South African tyranny.

Musk stated that xAI would always admit errors with its Grok AI models in a recorded interview with Microsoft CEO Satya Nadella.

Through the use of "system prompts," programmers frequently pre-programme generative AI models to respond or refrain from responding in a particular way, or to express particular moods or styles, regardless of the user's input.

When it was discovered that the most recent model from market leader OpenAI was producing excessively sycophantic responses, the business promptly announced that it will make the necessary adjustments to fix the issue.

 

Grok's responses raised concerns as they were consistent with a conspiracy theory that South African-born Musk frequently posts on social media.

After receiving criticism, the firm announced that it was taking steps to change its review procedures, make Grok's system prompts public, and establish a "24/7 monitoring team" to handle similar events in the future.

Musk stated during the Microsoft event that xAI will be transparent when errors are made, without mentioning the incident by name.

This might be seen as a jab at Microsoft's primary collaborator for developing its in-house Copilot models, OpenAI, the company behind ChatGPT, an archrival.

In contrast to more transparent models like Meta's Llama or the technology from the Chinese startup DeepSeek, OpenAI, which Musk co-founded in 2015, is frequently criticized for keeping the inner workings of its technology a secret.

Also Read: Advice from 5 CFOs Germinating Growth and Innovation in 2025

Sam Altman, the CEO of OpenAI, also made a remote appearance at the Microsoft Build event in Seattle. During a live Q&A session with Nadella, the two tech titans showcased the most recent advancements in their collaborative cooperation.

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