Microsoft is reportedly exploring the integration of non-OpenAI artificial intelligence (AI) models into its 365 Copilot suite. This development comes as the tech giant seeks to lessen its reliance on OpenAI’s models, driven by growing concerns over performance and cost efficiency. To achieve this diversification, Microsoft is evaluating both third-party solutions and its own internally developed models. The 365 Copilot, which was launched in March 2023, has prominently featured the GPT-4 AI model as one of its distinguishing characteristics.
Microsoft Seeks to Decrease Dependence on OpenAI Models
According to a report by Reuters, Microsoft is actively pursuing the incorporation of both internal and external AI models into its 365 Copilot offerings. Citing unnamed sources, the report indicates that the company is moving away from relying exclusively on OpenAI’s large language models (LLMs) for its enterprise AI solutions.
This shift marks a significant change in Microsoft’s current AI strategy. The company invested $1 billion in OpenAI back in 2019, followed by an additional $10 billion in 2023, enhancing its partnership with the AI developer. This collaboration has granted Microsoft early access to all AI models created by OpenAI.
Concerns related to the cost and speed of OpenAI’s AI models are reportedly among Microsoft’s main issues. Notably, while these models are not used internally, they serve as foundational technology for AI products aimed at Microsoft’s enterprise clients.
“We incorporate various models from OpenAI and Microsoft depending on the product and experience,” the company stated in a comment to Reuters.
In its pursuit of diversification, Microsoft is examining third-party AI models and exploring options for developing its own LLMs. The company has successfully released several smaller language models (SLMs), with the latest being the open-source Phi-4 AI model, though a general-purpose LLM has yet to be achieved.
Recently, Microsoft expanded its GitHub Copilot by enabling developers to utilize Google’s Gemini and Anthropic’s Claude AI models. Notably, GitHub Copilot was the first AI product launched by Microsoft following its partnership with OpenAI. There is potential for future iterations of the 365 Copilot tools to also offer users the ability to choose from various models.
