Microsoft develops MAI models that could rival OpenAI and Anthropic

US: Microsoft has been working on its own artificial intelligence models, known as MAI, which have shown test results that suggest they can compete with OpenAI and Anthropic, according to a source familiar with the matter.

According to The Edge Singapore, Microsoft has tested MAI — which could reduce its reliance on OpenAI — on various tasks, including features for its Copilot-branded AI assistants. These Copilot tools are designed to answer user questions and offer suggestions for tasks like writing documents or taking conference calls.

Microsoft is also working on reasoning models that can handle more complex queries and solve problems in a way that mimics human thinking, said the source.

OpenAI, Anthropic, and Alphabet are also developing similar models. Last month, Microsoft added OpenAI’s o1 reasoning model to its Copilot products.

A Microsoft spokesperson said the company continues to use a mix of models, including OpenAI’s technology, Microsoft’s own AI models, and open-source models.

Microsoft has invested about US$13 billion (S$17.30 billion) in OpenAI, and their partnership has drawn attention in the tech industry.

In January, Microsoft and OpenAI renegotiated their agreement, allowing OpenAI to use other cloud providers unless Microsoft wanted the business itself. Their deal runs until 2030.

While OpenAI did not comment, Microsoft CFO Amy Hood recently spoke at a Morgan Stanley conference, stating, “We’re both successful when each of us are successful,” emphasising the importance of long-term planning for both companies.

According to The Information, alongside MAI, Microsoft also offers smaller in-house models called Phi and resells AI models from other companies like Anthropic, DeepSeek, Meta Platforms, and Elon Musk’s xAI.

Ms Hood said Microsoft remains “incredibly proud” of having leading models from OpenAI, but she noted that they also have other models, including their own, to offer users more choices. /TISG

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