Microsoft joins AI cost-cutting trend by relying more on its own models

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Microsoft joins AI cost-cutting trend by relying more on its own models

TechCrunch · 2 hours ago

Microsoft has begun shifting its artificial intelligence infrastructure toward internal development, reducing its dependence on models supplied by OpenAI and Anthropic. The company is now using proprietary MAI models to handle certain user requests within Excel and Word, marking a strategic reversal from its earlier positioning that Office 365 relied substantially on third-party AI providers.

This move reflects broader cost pressures rippling across the technology industry, where expenses associated with AI services have prompted multiple major corporations to reassess their spending strategies. The economic strain has intensified sufficiently that some firms are evaluating less expensive alternatives, including models developed outside the United States, though such options present security considerations that complicate the decision.

  • Microsoft is reducing reliance on OpenAI and Anthropic by deploying its own AI models in Office applications like Excel and Word
  • Multiple tech giants—Amazon, Meta, Uber, Accenture—are cutting AI spending after costs surged earlier in 2026
  • Some companies are exploring cheaper alternatives including Chinese models, despite potential security risks

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