Microsoft is developing its own AI models for competition

Microsoft is developing its own AI models, called 'MAI,' to reduce reliance on OpenAI. This shift includes testing models from xAI, Meta, and DeepSeek for its Microsoft 365 Copilot product. The MAI models aim to handle complex reasoning tasks and are being integrated into Copilot, replacing some of OpenAI's technology. Microsoft is also considering offering MAI as an API for external developers. Previously, Microsoft relied heavily on OpenAI's GPT-4 model for Copilot. The company has since changed its partnership with OpenAI, moving to a 'right of first refusal' agreement for cloud services.