Microsoft Corp. has integrated AI models from Anthropic and xAI into its Azure platform, expanding beyond its previous alliance with OpenAI. This move diversifies Microsoft's AI ecosystem, providing developers with access to a range of technologies including Grok 3 and Grok 3 Mini from xAI, and models from Deepseek, Meta, and OpenAI within the Azure AI Foundry. At the Microsoft Build 2025 conference, CEO Satya Nadella and Elon Musk announced the integration of xAI's Grok 3 into Azure AI Foundry. This collaboration occurs amid legal tensions between Musk and OpenAI, yet Microsoft remains committed to supporting an open, diverse AI ecosystem. Microsoft is enhancing Windows 11 with AI-driven features, introducing new AI shortcuts in File Explorer for image manipulation. The company is also advancing its 'agent factory' vision, allowing businesses to develop AI agents that can interact with desktop applications using the Model Context Protocol, AI Foundry, VBS Enclave SDK, and MCP support. Microsoft's AI strategy includes Copilot Studio and Copilot Agents, as well as the introduction of Windows ML and Command Palette, aimed at accelerating scientific discovery and opening its infrastructure to external AI models for developers and enterprises.