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xAI's Grok AI Now Free on Microsoft 365, Undercuts Copilot

xAI's Grok AI Now Free on Microsoft 365, Undercuts Copilot

XAI has made its Grok AI assistant available for free on Microsoft 365 applications, including Word, PowerPoint, and Excel. The move directly challenges Microsoft's own Copilot, which costs $30 per month for similar functionality.

Free AI in Office Apps

Grok's integration means users can get AI-powered help with writing, presentations, and spreadsheets without paying a subscription. The tool appears directly within the familiar Office interface, offering suggestions, generating content, and answering questions. For anyone who uses these apps regularly, it's a no-cost alternative to Microsoft's paid offering.

The Price Gap

Microsoft Copilot for Microsoft 365 costs $30 per user per month. That adds up quickly for businesses or individuals who want AI assistance across multiple apps. Grok, by contrast, is free. The difference is stark: one requires a recurring payment, the other doesn't. xAI's decision to offer Grok at no charge puts pressure on Microsoft to justify its pricing or respond with a free tier of its own.

What This Means for Users

Anyone with a Microsoft 365 subscription — or even just the free web versions of Word, PowerPoint, and Excel — can now try Grok. The AI is built to handle tasks like drafting documents, creating slide decks, and analyzing spreadsheet data. It's a direct competitor to Copilot, but without the price tag. For now, users can open any of the three Office apps and start using Grok at no extra cost. Whether Microsoft adjusts its strategy in response is an open question.