Microsoft working on AI tools to take on OpenAI: Report
What's the story
Microsoft is increasing its push to compete with OpenAI, its longtime collaborator, by developing its own AI models and exploring alternatives to power products like Microsoft's Copilot bot.
The firm is creating its own AI "reasoning" models comparable to OpenAI's o1 and o3-mini, The Information reports.
The relationship between Microsoft and OpenAI has been marred by disagreements over technical details.
Despite Microsoft's requests for information about how OpenAI's o1 model works, OpenAI has reportedly refused to share them.
New developments
Microsoft developing competitive AI tools
Along with its own reasoning models, Microsoft is also developing a family of models called MAI. These are said to be competitive with OpenAI's models, Bloomberg reports.
The tech giant is reportedly considering offering these new models via an API later this year. This could potentially give developers powerful tools for their own applications and services.
AI exploration
Exploring alternative AI models
Along with its own advancements, Microsoft is also testing alternative AI models from Meta, xAI, Anthropic, and DeepSeek as possible replacements for OpenAI technology in Copilot.
This exploration shows that Microsoft is not just depending on its OpenAI partnership but is actively looking for other options in the fast-evolving world of artificial intelligence.
Financial backing
Microsoft's significant investment in OpenAI
To date, Microsoft has invested around $14 billion in OpenAI. The massive financial backing highlights the tech giant's commitment toward AI development.
However, given the latest developments and explorations, it seems like Microsoft is also gearing up for alternative paths in its AI journey.