Microsoft is partnering with Elon Musk’s space company SpaceX to expand the global internet connectivity using Starlink. This is the software giant’s second partnership with an Elon Musk-owned company. In September last year, Microsoft partnered with Musk’s AI startup xAI to offer the Grok AI model on Azure. Microsoft shared a blog post announcing partnership with SpaceX. “Microsoft continues to expand and diversify its portfolio to reach communities where traditional infrastructure alone cannot meet demand,” Melanie Nakagawa – Chief Sustainability Officer, Microsoft said in the post.“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships. This is intended to expand the set of tools available to deliver digital access while remaining firmly embedded in a holistic, partnership-driven approach,” Nakagawa added.Using the Starlink, Microsoft aims to support connectivity for 450 community hubs across rural and underserved regions in Kenya, “including farmer cooperatives, aggregation centers, and digital hubs”. “These deployments combine satellite connectivity with digital skills, tools, and ecosystem coordination to support agricultural productivity, access to markets, and adoption of digital and AI-enabled services”.

Microsoft to offer rival AI models from own data center

Meanwhile, Nvidia, Microsoft, BlackRock and Elon Musk’s xAI have partnered to purchase Aligned Data Centers for $40 billion. Announced last year, Abu Dhabi’s MGX, BlackRock’s Global Infrastructure Partners and members of Artificial Intelligence Infrastructure Partnership, or AIP, will acquire 100% of the company’s equity in what will be the largest global data center deal to date, according to the companies. AIP was created by BlackRock, MGX, Microsoft and Nvidia in September 2024 to accelerate investment in AI infrastructure. The Kuwait Investment Authority, xAI and Temasek have joined as additional participants.“With this investment in Aligned Data Centers, we further our goal of delivering the infrastructure necessary to power the future of AI, while offering our clients attractive opportunities to participate in its growth,” Larry Fink, the CEO of BlackRock and Chairman of AIP, said in a statement.