Microsoft is developing its own artificial intelligence reasoning models to compete with OpenAI and may offer them to developers, according to a report by The Information on Friday, citing a person involved in the initiative.
The Redmond, Washington-based tech giant, a key supporter of OpenAI, has reportedly started testing models from xAI, Meta, and DeepSeek as potential alternatives to OpenAI for its Copilot product.
Despite its early partnership with OpenAI positioning it as a leader in the AI space, Microsoft has been exploring ways to reduce its reliance on the ChatGPT creator. Reuters previously reported in December that Microsoft was integrating both internal and third-party AI models into Microsoft 365 Copilot to diversify its AI infrastructure and lower costs.
When Microsoft introduced 365 Copilot in 2023, a key selling point was its use of OpenAI’s GPT-4 model. However, The Information reports that Microsoft’s AI division, led by Mustafa Suleyman, has completed training a family of models known internally as MAI. These models reportedly perform nearly on par with leading models from OpenAI and Anthropic based on widely recognized benchmarks.
The company is also developing reasoning models utilizing chain-of-thought techniques, a method that enhances problem-solving by generating answers with intermediate reasoning steps. These models could serve as direct competitors to OpenAI’s offerings.
Suleyman’s team is already experimenting with replacing OpenAI’s models in Copilot with the larger MAI models, which are significantly more advanced than Microsoft’s earlier Phi models. Additionally, Microsoft is considering making the MAI models available as an API later this year, enabling external developers to integrate them into their own applications.
Microsoft and OpenAI have not yet responded to Reuters’ requests for comment.
