Microsoft joins AI cost-cutting trend by relying more on its own models
Microsoft has started using its own MAI models in Excel and Word to reduce reliance on OpenAI and Anthropic, following a broader industry trend of curbing AI spending.
Tech giant Microsoft has joined the growing trend of reducing costs in artificial intelligence by increasingly relying on its own in-house models rather than third-party solutions. According to a Bloomberg report, the company is now using its MAI models to handle a certain percentage of user prompts in applications like Excel and Word.
Previously, Microsoft advertised that large parts of Office 365 were powered by models from OpenAI and Anthropic. While the company still uses these third-party models, it is increasingly developing its own AI agents. At its annual Build conference in June, Microsoft announced the launch of seven new MAI models, including an agentic coder and a text-to-image generator.
Microsoft declined to provide further comment to TechCrunch. These cutbacks are part of a broader industry trend. After an initial wave of "tokenmaxxing" earlier this year, tech companies have become more frugal in recent months. Amazon, Uber, Meta, and Accenture have also taken steps to curb spending.
The immense cost of providing and buying AI services has become controversial. Some Silicon Valley companies are even considering using Chinese models for cheaper agentic solutions, despite concerns over potential security issues.
