Introduction to Microsoft’s AI Push

Microsoft is intensifying its efforts to compete with OpenAI, its long-standing partner, by creating its own advanced AI models. This move also involves exploring alternatives to power its products, such as the Microsoft Copilot bot.

Development of AI Models

According to reports from The Information, Microsoft has successfully developed AI "reasoning" models that are comparable to OpenAI’s models, including o1 and o3-mini. However, OpenAI has allegedly refused to share technical details about how o1 works, which has led to increased tensions between the two companies.

MAI Models and API Consideration

Bloomberg reports that Microsoft has also created a family of models known as MAI, which are competitive with OpenAI’s own models. The company is considering offering these models through an API later this year. In parallel, Microsoft is testing alternative AI models from xAI, Meta, Anthropic, and DeepSeek as potential replacements for OpenAI technology in its Copilot bot.

Hedging Bets in AI Investments

Microsoft, which has invested approximately $14 billion in OpenAI to date, is diversifying its approach to the AI sector. This includes hiring key figures such as Mustafa Suleyman, co-founder of DeepMind and Inflection, to lead its AI efforts. By doing so, Microsoft aims to reduce its dependence on OpenAI and explore new opportunities in the AI landscape.