Key facts
- Microsoft is deploying its own in-house MAI models for certain user prompts in Excel and Word.
- This strategy aims to reduce costs associated with using third-party AI models from OpenAI and Anthropic.
- The company announced seven new MAI models at its recent Build conference.
- This move is part of a larger industry trend of tech companies cutting back on AI spending.
Microsoft has reportedly begun to implement a cost-saving strategy by increasing its use of internally developed AI models, shifting away from a heavy reliance on third-party providers like OpenAI and Anthropic. This approach is being applied to widely used programs such as Excel and Word, where a portion of user prompts are now being handled by Microsoft's own MAI models.
The company had previously highlighted its use of OpenAI and Anthropic models in Office 365. However, Microsoft has also been developing its own AI agents, announcing seven new MAI models at its recent Build conference, including an agentic coder and a text-to-image generator.
This move by Microsoft reflects a broader trend across the tech industry, where companies like Amazon, Uber, Meta, and Accenture are reportedly cutting back on spending due to the high costs associated with AI services. Some companies are even exploring more affordable AI solutions from Chinese providers, despite potential security concerns.