We report on the observation of giant magnetoresistance in magneticall
y inhomogeneous bulk granular Cr100-xFex alloys. The largest magnetore
sistance among the investigated alloys of 10.7 less than or equal to x
less than or equal to 49.0 at. % amounts to 26% for x = 18.9 at. % at
5 K and 4 T. This is substantially larger than in other bulk random 3
d alloys and is of the same order of magnitude as that in granular fil
ms. Concentration, temperature, and field dependences of the magnetore
sistance are also similar to those observed in granular media. The ori
gin of giant magnetoresistance in bulk Cr-Fe is attributed to the fiel
d-induced alignment of Fe-rich ferromagnetic clusters in a Cr-rich mat
rix. Giant magnetoresistance in Fe-Cr collapses just above x = 20 at.
%, at which long-range ferromagnetic order sets in.