Microsoft Ditches OpenAI
Microsoft is ditching OpenAI and Anthropic to cut costs. Here is why they are shifting to their own MAI models. 👇
What the video says
Microsoft is reportedly ditching top-tier models from OpenAI and Anthropic to cut its massive artificial intelligence bills. A Bloomberg report reveals the tech giant is shifting workloads to its own Microsoft AI model family, known as MAI.
Tens of thousands of prompts in Excel and Outlook are already routed away from third-party systems. This transition is happening despite Microsoft publicly admitting that its MAI models are not as sophisticated as leading frontier systems.
But the financial pressure of high-end AI is forcing a corporate shift. Microsoft AI Chief Executive Mustafa Suleyman disclosed that paying Anthropic is extremely expensive, and the goal is to ultimately eliminate that cost.
The cost-cutting push leans heavily on the newly released MAI Thinking 1 model, a mid-sized system with 35 billion active parameters. While Microsoft's partnership deal with OpenAI expires in 2032, the company is already building its own cheaper path forward.
