Microsoft is taking steps to lessen its dependence on OpenAI, as reported by The Information. The tech giant is working on its own artificial intelligence (AI) reasoning models internally dubbed ‘MAI.’ This move is designed to boost Microsoft’s AI capabilities and reduce its reliance on the creator of ChatGPT.
Microsoft has already begun testing AI models from xAI, Meta, and DeepSeek – potential alternatives to OpenAI’s technology for its flagship AI product, Microsoft 365 Copilot. This diversification comes even after Microsoft’s substantial $13.75 billion investment in OpenAI since 2019, underscoring its larger ambitions in the AI sector.
The MAI models are being designed to tackle complex reasoning and problem-solving tasks, with performance, according to reports, matching that of OpenAI and Anthropic’s models. Mustafa Suleyman, leading Microsoft’s AI division, has overseen the completion of this family of models. The Information reports that Microsoft is using chain-of-thought techniques, an advanced AI reasoning process that generates answers with intermediate reasoning steps. Microsoft is reportedly already experimenting with integrating these models into Copilot, in some cases replacing OpenAI’s technology. The company is also considering offering MAI as an application programming interface (API) later this year, allowing external developers to incorporate Microsoft’s AI capabilities into their own applications.
Microsoft’s move to develop in-house AI aligns with its broader strategy to diversify its AI infrastructure. Copilot was initially presented as utilizing OpenAI’s GPT-4 model when it was launched in 2023. However, Microsoft has been exploring alternative AI models to avoid dependency, reduce costs, and enhance processing speeds. This follows earlier reports from Reuters in December 2024, which revealed that Microsoft was integrating both internal and third-party AI models into Copilot. While Microsoft remains a key partner of OpenAI, the nature of their collaboration has evolved. A notable change came when Microsoft relinquished its exclusive role as OpenAI’s cloud provider, opting instead for a ‘right of first refusal’ agreement, which allows OpenAI to seek cloud services from other providers.
As Microsoft continues to develop its AI capabilities, the introduction of MAI could significantly impact the broader AI ecosystem. If Microsoft successfully deploys its models across its suite of products and offers them to developers, it could reshape competition in the AI space, challenging OpenAI’s dominance while giving businesses more flexibility in integrating AI-powered solutions. Neither Microsoft nor OpenAI has responded to media requests for comments on these developments, as reported by Reuters.
