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Microsoft shifts to in-house AI models to cut costs and reduce reliance on OpenAI, Anthropic

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Microsoft is replacing AI models from external providers like OpenAI and Anthropic with its own internally developed systems called MAI models. The move is part of a broader cost-cutting strategy following tens of thousands of recent layoffs at the company. Tens of thousands of AI prompts are now being processed by Microsoft's proprietary models instead of third-party ones. The company says it can deliver competitive AI capabilities at significantly lower operational costs. This shift reflects Microsoft's stated goal of reducing financial dependence on outside AI laboratories.

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Microsoft shifts to in-house AI models to cut costs and reduce reliance on OpenAI, Anthropic · ShortSingh