Microsoft is developing its own AI reasoning models that can compete with OpenAI. The company is also considering models from xAI, Meta, and DeepSeek as possible alternatives to OpenAI in Copilot.
According to sources at The Information, the tech giant, which previously invested billions in OpenAI, is now looking for ways to reduce its reliance on a single AI partner. Copilot is the main AI tool within Microsoft’s products. The assistant is based primarily on OpenAI’s GPT models. In GitHub, Edge and Word, among others, Copilot is currently filling a role as an assistant. Because of its relationship with OpenAI, Microsoft can often be the first to use the latest versions of the GPT models.
Microsoft’s potentially new strategy fits into a broader pattern of AI innovation within the company. For example, the company recently launched the Copilot GPT Builder, which allows users to create chatbots without programming knowledge. Developing its own AI models would give Microsoft more control over the technology and potentially provide cost savings.
Microsoft and OpenAI have not yet commented.
Future plans
Reports also surfaced in December about Microsoft’s moves to diversify into AI. It wants to add internal and third-party models to power Microsoft 365 Copilot. Reducing costs was also cited as a reason.