Microsoft Joins AI Cost-Cutting Trend by Relying More on Its Own Models
Microsoft is shifting some prompts in Excel, Word and Teams to MAI models as it seeks lower AI costs and better data residency control, Bloomberg reported.
- On Tuesday, Microsoft began deploying its own in-house MAI models to handle user prompts in Excel and Word, reducing reliance on third-party software from OpenAI and Anthropic.
- CEO Satya Nadella reportedly fears Microsoft becoming "the next IBM" if it relies too heavily on a single partner, driving the company to own its model technology rather than rent it.
- At its Build conference last month, Microsoft unveiled seven MAI models, including an agentic coder; one tuned for McKinsey outperformed OpenAI models on cost efficiency by a factor of ten.
- A 2025 contract renegotiation ended Microsoft's exclusivity, freeing the company to build competing models while retaining a license to OpenAI's technology through 2032.
- After a brief period of "tokenmaxxing" earlier this year, tech companies are acting significantly more thrifty as the high cost of AI services forces firms to seek affordable, in-house solutions.
28 Articles
28 Articles
Microsoft replaces OpenAI, Anthropic models with its own AI in Excel, Outlook
Microsoft is starting to replace OpenAI and Anthropic with its own AI models in software products like Excel and Outlook, according to Bloomberg. A person familiar with the matter said that tens of thousands of AI prompts in the widely used spreadsheet and email applications are now being completed each week with Microsoft’s internally built MAI model. Microsoft had previously relied on models from OpenAI and Anthropic. This comes as Microsoft i…
Microsoft replaces ChatGPT and Claude models with its own AI to cut costs: Details here
Microsoft is reducing its dependence on external AI models from OpenAI and Anthropic by deploying its own in-house AI systems across workplace applications. The company has started using its MAI models for thousands of weekly AI requests in apps like Excel and Outlook as it looks to lower AI operati
(San Francisco = Yonhap News) Correspondent Kwon Young-jeon = Microsoft (MS) [developed] its own artificial intelligence (AI) model to reduce dependence on OpenAI and Antropic...
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