AI

Microsoft is reportedly ditching OpenAI’s and Anthropic’s AI models in favor of its own to cut costs

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Microsoft is reportedly transitioning away from using OpenAI's and Anthropic's most advanced AI models in favor of its own Microsoft AI (MAI) model family

Microsoft is reportedly ditching OpenAI’s and Anthropic’s AI models in favor of its own to cut costs

Key takeaways

  • Microsoft is transitioning away from OpenAI and Anthropic models in favor of its own MAI model family to cut costs.
  • Tens of thousands of prompts in Excel and Outlook are now being handled by Microsoft's MAI models.
  • Microsoft's goal is to reduce and ultimately eliminate the high costs paid to Anthropic.
  • Microsoft's partnership deal with OpenAI will ultimately expire in 2032.

Microsoft is reportedly transitioning away from using OpenAI's and Anthropic's most advanced AI models in favor of its own Microsoft AI (MAI) model family to cut costs. According to a Bloomberg report, tens of thousands of prompts in platforms like Excel and Outlook are now being routed through Microsoft's in-house MAI models instead of third-party systems. This shift comes amid growing industry-wide concerns over the high costs of top-tier AI models, with Microsoft AI CEO Mustafa Suleyman stating the company's goal is to ultimately eliminate payments to Anthropic.

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In their words

“Anthropic is extremely expensive and I think many people are urgently looking for alternatives. We pay a lot of money to Anthropic, so our goal is to reduce and ultimately eliminate that cost.”
Mustafa Suleyman, Microsoft AI Chief Executive

By the numbers

35B
Active parameters in Microsoft's MAI-Thinking 1 model
256,000
Token context window of MAI-Thinking 1
$10
Anthropic's price per million input tokens for Fable 5
$0.435
DeepSeek's price per million input tokens for V4-Pro
2032
Expiration year of Microsoft's deal with OpenAI

How it unfolded

  1. Earlier this year DeepSeek released budget-friendly V4-Pro model
  2. Last month Microsoft unveiled seven new MAI models including MAI-Thinking 1
  3. 2026-07-07 Bloomberg reported Microsoft is transitioning to its own models
  4. 2032 Microsoft's partnership deal with OpenAI will expire

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Source: Siliconangle

Common questions

What happened with Microsoft Corp.?
Microsoft is transitioning away from OpenAI and Anthropic models in favor of its own MAI model family to cut costs.
Where can I read the original report?
Read the full report at siliconangle.

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