Microsoft is intensifying its initiative to rival OpenAI by developing proprietary AI models and exploring alternatives for applications such as the Copilot bot. This move comes as the company seeks to reduce its dependency on its long-time collaborator.
Development of Proprietary AI Models
The tech giant has created AI “reasoning” models that are competitive with OpenAI’s offerings, including its own versions analogous to OpenAI’s recent releases. Reports indicate that Microsoft has faced difficulties in obtaining crucial technical information from OpenAI regarding these models, which has led to heightened tensions between the two companies.
MAI Models and Alternatives
Additionally, Microsoft has introduced a series of models termed MAI, designed to compete with OpenAI’s technology. There are plans to potentially launch these models through an API later in the year. Meanwhile, the company is evaluating alternative AI solutions from various firms including xAI, Meta, Anthropic, and DeepSeek, as potential substitutes for OpenAI technologies within Copilot.
Financial Investments and Strategic Hiring
To date, Microsoft has invested approximately $14 billion into OpenAI, but it is also diversifying its approach by enlisting talent from other leading AI organizations. Notably, Mustafa Suleyman, co-founder of Inflection and former DeepMind executive, has been appointed to spearhead Microsoft’s AI initiatives.