Microsoft is reportedly developing an internal artificial intelligence (AI) model to rival OpenAI, according to a recent report. The company also plans to offer the model to external developers, signaling a strategic move to reduce its dependence on the popular ChatGPT creator.
The Information reported on Friday, March 7, that the Redmond-based tech giant has begun testing AI models from competitors like xAI, Meta, and DeepSeek as alternatives to OpenAI’s technology within its AI feature, Copilot. This diversification strategy highlights Microsoft’s aim to lessen its reliance on OpenAI, despite being a major investor in the AI startup.
Since the introduction of Microsoft 365 Copilot in 2023, the feature has primarily utilized OpenAI’s GPT-4 model. However, Microsoft now seeks to incorporate a wider array of technologies, including internal AI models and those from third parties, to potentially lower operating costs and increase flexibility.
Microsoft’s AI Division, led by Mustafa Suleyman, has completed training on a series of models internally referred to as MAI. This new model is claimed to perform comparably to leading AI models from OpenAI and Anthropic across various standard benchmarks.
The Suleyman team is also focusing on a reasoning-based AI model, which uses a chain-of-thought technique, enabling the AI to generate answers through more complex reasoning processes. The model is designed with direct competition to OpenAI technology in mind.
Currently, Microsoft has initiated testing of the MAI model within Copilot, gradually replacing the OpenAI model. The MAI model is significantly larger than the previous family of models, Phi, which Microsoft previously developed.
The report further indicates that Microsoft is considering releasing the MAI model in API (Application Programming Interface) form later this year. This would enable external developers to integrate Microsoft’s AI model into their own applications, expanding its reach and potential applications.
Neither Microsoft nor OpenAI has issued an official statement regarding the report’s findings.
