Microsoft CEO Satya Nadella has responded to Tesla and xAI chief Elon Musk’s bold warning that OpenAI could “eat” Microsoft alive following the launch of GPT-5. The remark came just hours after Nadella announced the integration of OpenAI’s latest model across Microsoft’s major platforms.

On Saturday, Nadella revealed that GPT-5 would now power Microsoft 365 Copilot, Copilot, GitHub Copilot, and Azure AI Foundry, marking a significant step in the company’s AI strategy. “Today, GPT-5 launches across our platforms, including Microsoft 365 Copilot, Copilot, GitHub Copilot, and Azure AI Foundry,” he announced.

Describing GPT-5 as “the most capable model yet from our partners at OpenAI,” Nadella highlighted its advancements in reasoning, coding, and conversational abilities — all trained and optimized on Microsoft’s Azure cloud infrastructure.

Reflecting on the rapid evolution of AI, Nadella noted, “It has been just two and a half years since OpenAI CEO Sam Altman joined me in Redmond to unveil GPT-4 in Bing. The progress since then has been incredible.” He added, “The pace of progress is only accelerating, and I can’t wait to see what developers, enterprises, and consumers will do with this latest breakthrough.”

Musk, however, was quick to share his skepticism. Posting on X (formerly Twitter), he commented on Nadella’s announcement: “OpenAI is going to eat Microsoft alive.” The billionaire entrepreneur, who backs the Grok AI platform through his company xAI, has repeatedly touted Grok’s capabilities.

In a good-humored yet competitive 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. Excited for Grok 4 on Azure and looking forward to Grok 5!”

Musk countered by reaffirming his confidence in his own AI platform, writing, “Except that Grok 4 Heavy is still the most powerful AI.” His remarks underscore the intensifying rivalry between OpenAI, backed by Microsoft, and xAI, which Musk claims offers superior AI performance.

Adding to the day’s AI announcements, Cursor AI — a code editor powered by artificial intelligence and built on Visual Studio Code — confirmed it has integrated GPT-5. The company described it as “the most intelligent coding model our team has tested,” and revealed it will be available for free “for the time being.”

With GPT-5 now embedded across Microsoft’s productivity, coding, and cloud services, and Grok 4 competing head-to-head, the AI race between tech titans shows no signs of slowing down. Both Nadella and Musk appear to embrace the competition, framing it as a catalyst for innovation — even if their visions of who will lead differ sharply.