Elon Musk warned Microsoft CEO Satya Nadella that OpenAI could “eat Microsoft alive” on the day GPT-5 rolled out across Microsoft platforms. The Sam Altman-led company launched the model with promises of powerful new advances.
Satya Nadella welcomed the debut, calling it the most capable yet. The public exchange underscored the rising rivalry in AI, even between partners.
Microsoft Integrates GPT-5 Across Platforms
Satya Nadella announced GPT-5’s integration into Microsoft 365 Copilot, GitHub Copilot, Azure AI Foundry, and other services. He called it a major milestone since GPT-4 launched in Bing two and a half years ago.
Mr. Nadella said the pace of progress is accelerating and expressed excitement over how developers, enterprises, and consumers will use this breakthrough.
ALSO READ: AI’s Next Powerhouse? Sam Altman Hints This Country Could Overtake US for OpenAI’s GPT-5 Revolution
Musk Pushes Back with Grok
In response to the “eat Microsoft alive” remark, Nadella replied that competing in tech has been the challenge for 50 years. He said every day brings learning, innovation, partnership, and competition.
OpenAI is going to eat Microsoft alive
— Elon Musk (@elonmusk) August 7, 2025
He added that he looks forward to Grok 4 and Grok 5 on Azure. Musk, backing the Grok AI platform, claimed Grok 4 Heavy remains the most powerful AI.
Cursor AI Confirms GPT-5’s Coding Edge
Cursor AI, a code editor based on Visual Studio Code, also adopted GPT-5. It called the model the most intelligent coding AI it has tested. It made the integration free “for the time being,” underscoring how quickly GPT-5 is becoming part of developer tools.
Altman Sees GPT-5 as a Leap Toward AGI
Sam Altman revealed feeling “useless” after GPT-5 solved a complex email problem instantly. He called the experience “weird” and admitted it scared him. He compared the launch to the Manhattan Project in its potential scale, though not destructive.
Sam suggested GPT-5 could have permanent effects. Altman said GPT-3 felt like a high school student, GPT-4 like a college student, and GPT-5 like a PhD-level expert.
ALSO READ: ChatGPT-5 Launches: OpenAI’s Most Powerful AI Yet
Rivalry Inside Partnership
Despite the tensions highlighted by Musk’s remarks, Microsoft is a major OpenAI investor and collaborator. Because of OpenAI’s rapid development, Microsoft is both privileged and vulnerable.
Despite Satya Nadella’s support for GPT-5 integration, Musk warns that OpenAI’s dominance could overshadow Microsoft’s own AI objectives.
GPT-5 Expands AI Boundaries
OpenAI released GPT-5 free to all users. The model handles autonomous agent tasks, “vibe coding” for instant app generation, and aims for higher trust.
Sam Altman called it a step toward artificial general intelligence. Global AI competition is now heating up, and the Musk-Nadella exchange has made that race more personal.
ALSO READ: ‘It Thinks Before It Speaks’: How GPT-5 is Outthinking GPT-4
