Microsoft is reportedly developing its own artificial intelligence (AI) reasoning models to compete with OpenAI, according to a report by The Information. This move signals Microsoft’s efforts to reduce its reliance on OpenAI’s technology while expanding its own AI capabilities.
The report states that Microsoft has tested AI models from various companies, including xAI, Meta, and DeepSeek, to potentially replace OpenAI’s technology in its Microsoft 365 Copilot. Additionally, Microsoft’s AI division, led by Mustafa Suleyman, has trained a new family of models known as MAI. These models are said to perform at a level comparable to OpenAI’s and Anthropic’s offerings.
Microsoft is now experimenting with integrating these in-house models into its products, with potential plans to release them as an API for external developers later this year. The shift could also help Microsoft cut costs associated with using OpenAI’s GPT-4 model.
Neither Microsoft nor OpenAI has commented on the report. However, Microsoft CEO Satya Nadella recently emphasized the importance of lowering AI costs and increasing AI investments to meet growing demand.
This development highlights Microsoft’s broader ambition to strengthen its position in the AI industry while maintaining competition with leading AI firms.
Related Links:
- Reuters: Microsoft developing AI reasoning models to compete with OpenAI
- WSJ: Microsoft, Meta Talk Up AI Ambitions and Spending Plans
