Microsoft Bypasses OpenAI Feud, Partners with Starlink for Connectivity Project

Microsoft Slashes Jobs Across Teams, Aims to Streamline Management
The logo of Microsoft is seen during the opening of the Hannover Messe industrial trade fair for mechanical and electrical engineering and digital industries, on March 31, 2025 in Hanover, northern Germany.

Microsoft on Tuesday announced a new partnership with Starlink, the satellite internet arm of SpaceX, to expand global connectivity—signaling it is willing to work with Elon Musk's businesses even as he battles Microsoft's close partner, OpenAI.

The collaboration will focus on connecting hundreds of community hubs in Kenya through a joint effort between Microsoft, Starlink and a local internet service provider.

In a blog post, Microsoft said the project aims to bring reliable internet access to underserved areas using low-Earth orbit satellite technology.

"Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships," said Melanie Nakagawa, Microsoft's chief sustainability officer, CNBC reported

"This is intended to expand the set of tools available to deliver digital access while remaining firmly embedded in a holistic, partnership-driven approach."

Microsoft Connects 299 Million People Worldwide

The move comes at a time when Musk is locked in a heated legal fight with OpenAI and its CEO, Sam Altman.

According to the NY Post, Musk, who co-founded OpenAI in 2015, is seeking as much as $134 billion in damages, arguing that the company shifted away from its original nonprofit mission.

Court filings show he wants compensation for what he calls "wrongful gains" tied to his early backing of the startup.

Despite the legal tension, Microsoft appears focused on expanding access to technology. The company has said it previously set a goal to bring internet access to more than 250 million people by the end of 2025.

According to Nakagawa, Microsoft has already extended connectivity to more than 299 million people worldwide.

The partnership also adds to growing demand for SpaceX's satellite network, which already holds contracts with US government agencies such as NASA and the Department of Defense.

Musk recently announced that SpaceX would merge with his artificial intelligence startup, xAI, which develops the Grok chatbot.

Meanwhile, Microsoft continues to support a wide range of AI tools through its cloud platform. Last year, the company said its Foundry software added support for Grok models.

Originally published on vcpost.com

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