Microsoft hopes to cut its genAI costs by focusing on its own models

Microsoft plans to focus more on in-house AI models in an effort to reduce its costs for generative AI (genAI), Bloomberg reports. The company has begun using its own MAI models to handle some user AI requests in Word and Excel rather than relying solely on models from OpenAI and Anthropic.

The company still uses third-party models, but has invested increasingly in its own AI solutions over the past year. At the Build developer conference in June, Microsoft unveiled seven new MAI models, including an AI code assistant and an image-generation model.

As the costs of advanced genAI models have risen, several tech companies — including Amazon, Meta, and Accenture — have reportedly been trying to find ways to reduce their expenses.