Microsoft dumps OpenAI for homemade MAI models in Word and Excel
microsoft now routes excel and word prompts through its own mai models instead of openai/anthropic to cut costs. this signals a shift to in-house infrastructure that could destabilize ai cloud revenues.
microsoft has begun routing a portion of user prompts in word and excel to its own mai models, moving away from openai and anthropic systems to reduce inference costs. the strategy builds on seven new ma1 models, including an agentic coder and image generator, released at the build conference last month. microsoft's pivot aligns with a wider industry retreat from high-cost third-party apis, with amazon, uber, and meta also curbing spending. this shift pressures ai providers relying on high api margins and suggests a future where major tech firms prioritize proprietary inference over external cloud buying.