

Microsoft Is Developing In-Residence AI Models To Venture Openai: Document
Tech behemoth microsoft is getting ready to launch its own AI models to compete with longtime companion OpenAI, consistent with The Records.
The organization has reportedly begun testing opportunity AI fashions from xAI, Meta, and DeepSeek as potential replacements for OpenAI's technology in microsoft 365 Copilot, its flagship AI product.
Microsoft's AI department, led by way of mustafa Suleyman, has educated a new family of models—internally known as 'MAI'—able to perform almost on par with popular fashions from OpenAI and Anthropic on industry benchmarks. The crew is also developing reasoning fashions the usage of chain-of-concept strategies, which decorate hassle-solving via generating solutions via intermediate reasoning steps.
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The file suggests that the team is already testing the MAI models—notably larger than Microsoft's earlier Phi fashions—with the aid of swapping them into Copilot in place of OpenAI's era.
Microsoft, which has invested about $14 billion in OpenAI, is reportedly considering releasing MAI fashions later this yr as an API (utility programming interface), which could help third-party developers to integrate them into their personal packages.
A preceding Reuters file from december first indicated that microsoft is working on incorporating each inner and 1/3-party AI model into Copilot to diversify beyond OpenAI's models and reduce fees.