“OpenAI will eat Microsoft alive...” Elon Musk warns Satya Nadella after GPT-5 launch

Elon Musk vs Satya Nadella

Elon Musk has once again stirred the tech world, this time with a warning for Microsoft CEO Satya Nadella. On Thursday, August 7, the Tesla and SpaceX chief reacted to the launch of OpenAI’s latest model, GPT-5, by saying that the AI company is “going to eat Microsoft alive.”

Musk, who also runs his own AI venture called xAI, didn’t stop there. He claimed that his company’s latest model, Grok 4, is far more advanced than GPT-5.

The exchange began after Nadella announced that GPT-5 was being rolled out across several Microsoft products, including Microsoft 365 Copilot, GitHub Copilot, Copilot, and Azure AI Foundry. He described GPT-5 as the “most capable model yet” from OpenAI, highlighting improvements in reasoning, coding, and conversation.

Nadella reflected on the journey since GPT-4 was first showcased in Bing two and a half years ago, calling the progress “incredible” and saying he was eager to see how developers, businesses, and everyday users would make use of the new technology.

Musk, however, responded with his now-viral remark, suggesting that Microsoft could end up losing ground to OpenAI despite their close partnership. Nadella replied in good spirits, noting that innovation in AI has been an ongoing challenge for decades. He added that he was excited to see Grok 4 running on Azure and looked forward to Grok 5 in the future.

While the remarks may seem like friendly banter, they also point to the intensifying competition in the AI space. OpenAI’s GPT-5 is already being positioned as a major leap forward, but Musk’s comments show that rivalries — even between partners — are far from cooling down.