Microsoft joins AI cost-cutting trend by relying more on its own models

Microsoft has reportedly begun deploying a cost-savings strategy by relying less on software from OpenAI and Anthropic and instead using its own in-house MAI models for programs like Excel and Word. This marks a shift from the company's previous advertising of Office 365 being powered by those third-party models. Microsoft still relies on third-party models but has increasingly sought to stand up its own AI agents, announcing seven new MAI models at its Build conference. Microsoft's apparent cutbacks are part of a broader trend of tech companies acting more thrifty, with other large companies like Amazon, Uber, Meta, and Accenture also reportedly making moves to curb spending. The immense cost of providing and buying AI services has become a controversial part of the industry, with some companies even looking to Chinese models for more affordable solutions despite security concerns.