Microsoft To Integrate Multiple AI Models Into 365, Reducing Dependence On OpenAI

The news agency Reuters shared an exclusive yesterday, revealing that Microsoft is working on integrating multiple artificial intelligence models from third parties, in addition to OpenAI, to reduce costs and its dependence on the AI startup. Anonymous sources confirmed the information and explained that the different AI models will power the tech giant’s AI product Microsoft 365 Copilot.

Microsoft has been concerned about OpenAI prices and speed for its business users. Both companies have been building strong partnerships for years. Microsoft has invested over $13 billion in OpenAI, and many of its AI features use OpenAI models like GPT-4.

“We incorporate various models from OpenAI and Microsoft depending on the product and experience,” said a spokesperson from Microsoft to Reuters.

The tech giant added OpenAI to its list of competitors for the first time in August, after the startup launched its AI-powered search engine feature.

Now Microsoft wants to make its AI models more efficient and reduce 365 Copilot costs. It is invested in tracking developments, spotting new business opportunities, and improving smaller models like Phi-4.

Microsoft has not disclosed 365 Copilot revenues, data on licenses purchased, utility, prices, or adoption progress—only that “nearly 70% of the Fortune 500 now use Microsoft 365 Copilot” in a November report. Other analysts, like BNP Paribas Exane, have revealed that 365 Copilot could reach 10 million paid users in 2024.

OpenAI recently announced that they are working on new AI agent models and could launch a new one in January, possibly competing with Copilot 365’s main features.