xAI CEO Elon Musk reacted sharply following the release of OpenAI’s latest GPT-5 model, calling it a challenge to his company’s position in the AI race. In a series of tweets, Musk claimed that Grok 4 Heavy remains the “most powerful AI” model currently available and revealed that Grok 5 is on track for release by the end of the year to “give rivals a run for their money.” He also issued a pointed warning to Microsoft CEO Satya Nadella about the company’s close ties with OpenAI, saying the ChatGPT maker is “going to eat Microsoft alive.”
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!
— Satya Nadella (@satyanadella) August 7, 2025
The Microsoft CEO responded to Elon Musk’s critical remarks about OpenAI’s GPT-5 launch with characteristic composure. In a subtle but pointed reply, Nadella said, “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.” He added that he was excited for Grok 4 to be available on Azure and is looking forward to the release of Grok 5—acknowledging the competition without escalating tension.
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In a separate announcement, Musk revealed that xAI’s Grok model would now offer its new Imagine feature—capable of generating both images and videos—completely free to all users. This move sets Grok apart from rivals like OpenAI, Google, and others, whose image generation tools may be free, but whose video-generation platforms such as Sora and Veo 3 typically require paid access. Musk’s strategy appears focused on gaining traction through accessibility.
GPT-5 is the smartest model we’ve ever done, but the main thing we pushed for is real-world utility and mass accessibility/affordability.
we can release much, much smarter models, and we will, but this is something a billion+ people will benefit from.
(most of the world has…
— Sam Altman (@sama) August 7, 2025
Meanwhile, OpenAI’s GPT-5 marks a significant leap in AI capabilities. The new model reportedly offers better performance in areas like coding, math, writing, healthcare, and visual perception. It will be available to all ChatGPT users, although those on paid plans will enjoy higher usage limits. This balanced release strategy is aimed at both expanding access and rewarding subscribers.
Thanks to OpenAI’s deepening partnership with Microsoft, GPT-5 is also being integrated into Microsoft’s ecosystem—including Microsoft 365 Copilot, GitHub Copilot, Azure AI Foundry, and the Copilot standalone app. Microsoft’s version of GPT-5 may even offer higher usage limits than what users get through OpenAI’s own channels. While GPT-5 is already live on Microsoft’s Copilot website, OpenAI’s broader rollout could take a few more days to reach all users.
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