Microsoft is actively working to integrate internal and third-party AI models into its flagship artificial intelligence (AI) offering, Microsoft 365 Copilot, reported Reuters, citing sources.
This initiative aims to diversify away from OpenAI’s technology, which currently underpins the product.
Sources familiar with the matters told the news agency that the move is intended to reduce costs and improve performance for enterprise users.
The company, a key backer of OpenAI, is seeking to reduce its reliance on the AI startup.
It marks a shift from recent years when Microsoft highlighted its early access to OpenAI’s models, particularly with the announcement of 365 Copilot in March 2023, which prominently featured OpenAI’s GPT-4 model.
A Microsoft spokesperson confirmed that OpenAI remains a partner for frontier models, the most advanced AI models available.
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The original agreement between Microsoft and OpenAI allows for the customisation of OpenAI’s models.
“We incorporate various models from OpenAI and Microsoft depending on the product and experience,” the Windows maker was quoted as saying in a statement.
OpenAI refused to comment on the news.
Microsoft is also developing its own smaller AI models, such as the latest Phi-4, and customising other open-weight models to enhance 365 Copilot’s efficiency and speed.
The objective is to make 365 Copilot cheaper to operate, potentially passing savings on to customers.
Microsoft’s leadership, including CEO Satya Nadella, is closely monitoring these developments, the sources said.
Microsoft 365 Copilot serves as an AI assistant within Microsoft’s enterprise software suite, including Word and PowerPoint.
Recent reports indicate that OpenAI is negotiating to remove a clause from its agreement with Microsoft that limits access to advanced artificial general intelligence (AGI) models.
AGI is described as a “highly autonomous system that outperforms humans at most economically valuable work.”
The current agreement stipulates that once OpenAI develops AGI, Microsoft would lose access to this technology.
By removing this condition, OpenAI seeks to enable Microsoft to continue investing in and accessing all OpenAI technologies even after AGI is developed.
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