Microsoft is developing AI models to rival OpenAI, focusing on reasoning models and alternatives for its Microsoft 365 Copilot. Potential release of MAI models in 2025.
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| Microsoft is working on AI reasoning models, including the MAI series, to rival OpenAI's GPT models and reduce dependency on external technologies. Image: ChicHue |
Redmond, Washington, USA — March 8, 2025:
Microsoft has begun developing its own artificial intelligence reasoning models to compete with OpenAI, with plans to release them later this year. According to a report from The Information, Microsoft aims to reduce its reliance on OpenAI, despite its early partnership with the AI startup, by introducing new AI models for its popular Microsoft 365 Copilot.
The company is exploring models from xAI, Meta, and DeepSeek as alternatives to OpenAI’s models in its suite of AI-powered tools. This shift is part of Microsoft’s strategy to lower costs and enhance product offerings, with the internal AI division, led by Mustafa Suleyman, working on models known as MAI.
These MAI models, which have been trained to perform nearly as well as OpenAI and Anthropic models on industry benchmarks, are said to incorporate reasoning abilities. They utilize chain-of-thought techniques that generate answers through intermediate steps, offering more advanced problem-solving capabilities compared to traditional AI models.
As part of the company's ongoing efforts, Microsoft is experimenting with swapping OpenAI’s models for MAI in Copilot, a move that could enhance user experience by integrating Microsoft’s proprietary technology. The tech giant is considering releasing these AI models as an application programming interface (API), allowing developers to integrate them into their own applications by the end of 2025.
While neither Microsoft nor OpenAI has commented on the developments, this strategic move by Microsoft represents a significant push to reduce dependence on external providers and create a more diversified AI ecosystem within its products.