Elon Musk warns Satya Nadella of OpenAI ‘eating’ Microsoft as GPT-5 launches; here’s how he reacted

Tesla CEO Elon Musk warned Microsoft chief Satya Nadella that OpenAI might end up "eating" his company alive—on the same day the Sam Altman-led AI giant launched GPT-5 across Microsoft's platforms. The new model marks a major leap in AI capabilities and has been integrated into several Microsoft products.

"Today, GPT-5 launches across our platforms, including Microsoft 365 Copilot, Copilot, GitHub Copilot, and Azure AI Foundry," the Microsoft CEO said. "It's the most capable model yet from our partners at OpenAI, bringing powerful new advances in reasoning, coding, and chat, all trained on Azure."

Nadella welcomes innovation and competition

Nadella recalled that it had been just two and a half years since OpenAI CEO Sam Altman visited Microsoft headquarters in Redmond to debut GPT-4 within Bing. He said the rate of advancement since then has been "incredible".

"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," he added.

Nadella responds to Musk’s jab 

Responding to Musk's "eat Microsoft alive" remark, 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!"

Cursor AI, an AI-powered code editor based on Visual Studio Code, also announced integration of GPT-5, calling it "the most intelligent coding model our team has tested" and offering it free "for the time being."

Musk still confident in Grok’s power

Musk, who backs the rival Grok AI platform, responded by asserting his product’s superiority. "Except that Grok 4 Heavy is still the most powerful AI," he posted, maintaining confidence in his own ecosystem.

Meanwhile, OpenAI rolled out GPT-5 on ChatGPT free to all users, underscoring major capability upgrades amid growing global AI competition.

OpenAI CEO Sam Altman described GPT-5 as "clearly a model that is generally intelligent" and called it a “significant step” toward artificial general intelligence, although it still lacks the ability to learn continuously.

He compared the evolution of the models: GPT-3 was like a high school student, GPT-4 like a college graduate, and GPT-5 like a PhD-level expert.

GPT-5: Smarter agents and ‘vibe coding’

The new model excels in performing autonomous agent tasks and introduces “vibe coding,” a feature that allows users to generate apps on demand. It is also engineered to be more reliable and trustworthy in its outputs—setting a new bar for AI capabilities.