Microsoft is actively developing its own artificial intelligence reasoning models to compete with OpenAI and is considering offering them to developers, according to a report by The Information.
The tech giant, headquartered in Redmond, Washington, has reportedly been testing AI models from xAI, Meta, and DeepSeek as potential alternatives to OpenAI for its Copilot features. Although Microsoft’s early partnership with OpenAI helped establish its leadership in the AI industry, the company has been exploring ways to reduce dependency on the ChatGPT creator.
In December, Reuters revealed that Microsoft was working on integrating both internal and third-party AI models into Microsoft 365 Copilot to diversify its AI infrastructure and cut costs. When Copilot was first introduced in 2023, its primary AI engine was OpenAI’s GPT-4.
Under the leadership of Mustafa Suleyman, Microsoft’s AI division has successfully trained a family of AI models, internally named MAI, which reportedly deliver performance comparable to top-tier models from OpenAI and Anthropic. Additionally, the company is developing reasoning models that leverage chain-of-thought techniques, enhancing their ability to solve complex problems.
Microsoft is already testing the MAI models within Copilot as a replacement for OpenAI’s models. The report also suggests that Microsoft may release these models as an API later this year, enabling external developers to integrate them into their applications.
