For a company that has poured over $14 billion into OpenAI and integrated its groundbreaking models into a range of applications, one might assume Microsoft is fully committed to relying on OpenAI for its artificial intelligence endeavors. However, behind the scenes, Microsoft has been working on something that suggests a different strategy.
According to multiple reports, Microsoft has developed a new suite of large language models called MAI—short for Microsoft Artificial Intelligence. These models have been tested against those from OpenAI and Anthropic and have proven competitive.
In a significant move, Microsoft has even explored the possibility of replacing OpenAI’s models with MAI in its AI-powered assistant, Copilot. This demonstrates a strong commitment to going beyond OpenAI’s models.
The tension between Microsoft and OpenAI has reportedly been escalating for months. The Information reported that OpenAI declined to share detailed technical information about its o1 model, which reportedly frustrated Microsoft engineers. Furthermore, the two companies recently renegotiated their partnership, allowing OpenAI to shift some workloads away from Microsoft’s cloud. This suggests that Microsoft is preparing for a future where it doesn’t have to depend on OpenAI.
Integrating MAI into Copilot would allow Microsoft to fully move beyond OpenAI’s technology. However, Microsoft isn’t just considering one alternative. The company has also reportedly assessed models from Anthropic, Meta, DeepSeek, and xAI. This suggests a strategy where Copilot could become model-agnostic rather than relying solely on OpenAI’s technology.
This isn’t Microsoft’s first venture into AI development. The company has already created Phi, a series of lightweight yet powerful AI models. The latest versions, Phi-4-mini and Phi-4-multimodal, were launched in February. This proves that Microsoft can train efficient AI models without relying on OpenAI’s vast infrastructure. If Microsoft applies similar techniques to MAI, it could produce powerful AI models at a significantly lower cost.
Although Microsoft currently maintains that it is committed to its partnership with OpenAI, actions often speak louder than words. If MAI continues to improve and Microsoft finds success with its own models, OpenAI may soon realize that its largest financial backer is also evolving into one of its biggest competitors.
