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MC1474124 Microsoft Copilot SpaceXAI subprocessor admin setting

Summary

SpaceXAI is added as a Microsoft Copilot subprocessor, enabling Grok models in Word, Excel, and PowerPoint for eligible Frontier customers starting September 18, 2026. The SpaceXAI admin setting is disabled by default and must be enabled by admins. Availability excludes EU, EFTA, UK, and government clouds.

Message ID: MC1474124
Service: Microsoft Copilot (Microsoft 365)
Category: Plan for change
Tags: New feature, Admin impact
Rollout: September 2026

Microsoft Message

As part of our efforts to expand model choice in Copilot, SpaceXAI has been added to Microsoft’s Online Services Subprocessor List, published in the Service Trust Portal. Being listed as a subprocessor does not, by itself, mean SpaceXAI is enabled for your organization or that SpaceXAI is processing your data.

Access to Grok models is governed by a new SpaceXAI admin setting under AI providers operating as Microsoft subprocessors in the Microsoft 365 admin center. The setting is disabled by default. Eligible customers participating in Frontier must explicitly enable the setting before Grok models can be used in their organization. If enabled, Grok models will be available in Word, Excel, and PowerPoint. Users can select Grok from the model selector when using Copilot in those apps.

When the SpaceXAI setting is enabled, Microsoft’s Product Terms and Data Protection Addendum (DPA) apply to the use of Grok models, except as otherwise disclosed in Microsoft Learn documentation.

Rollout schedule

The SpaceXAI setting to enable the use of Grok models in Word, Excel, and PowerPoint will be available to eligible customers starting September 18, 2026.

Impact on your organization

Who is affected

  • Customers participating in Frontier are eligible to access Grok models in Word, Excel, and PowerPoint.
  • Note: The following customers are not eligible and won’t see the SpaceXAI admin setting during initial rollout even if participating in Frontier.
  • Tenants in the EU, EFTA, and the UK.
  • Government cloud customers (GCC, GCC High, DoD).
  • Administrators managing model access controls in the Microsoft 365 admin center.

What will happen

  • The SpaceXAI admin setting will become available to eligible Frontier customers and will be disabled by default. Grok models are not available, and no customer data will be processed by SpaceXAI, unless an admin enables it.
  • If the admin setting is enabled, users will be able to select a Grok model from the model selector when using Copilot in Word, Excel, and PowerPoint. Admins can scope access to specific users or groups.
  • There is no change for organizations that take no action.

Action required / Recommendations

  • Review Microsoft Learn page covering SpaceXAI as a subprocessor and the new administrative setting.
  • Decide whether to enable the SpaceXAI setting for your organization and determine whether to scope access to specific users or groups.
  • Review published compliance information, including SpaceXAI’s via the SpaceXAI Trust Center, and confirm it aligns with your organization’s requirements before enabling access.
  • Notify your helpdesk and compliance teams if your organization has specific requirements around third-party model providers.

Compliance considerations

Compliance area: AI/ML or agent capabilities

Impact: Introduces Grok models as a model option in Copilot for Word, Excel, and PowerPoint.

Compliance area: Admin controls

Impact: A new SpaceXAI admin setting lets admins enable or disable access, with user- and group-level scoping. It is disabled by default.

Compliance area: Data processing

Impact: SpaceXAI is listed as a Microsoft AI subprocessor. No processing occurs unless the setting is enabled.

Compliance area: Regional availability

Impact: Only available to Frontier Public customers – not available to customers in the EU, EFTA, or UK at this time, or to government clouds.

Compliance area: Third-party certifications

Impact: SOC 1 Type II, PCI, FedRAMP and HITRUST certifications are not currently available for SpaceXAI. Customers should review available certification information before enabling access. Refer to SpaceXAI’s own certification landing page to understand the availability of their certifications, additional exclusions, and audit reports.

Learn more

  • Announcement blog
  • SpaceXAI as a subprocessor in Microsoft Online Services
  • Understanding AI functionality and models in Microsoft Online Services
  • Overview of AI Subprocessors