Microsoft Develops Its Own AI Models

Microsoft has announced its efforts to develop its own artificial intelligence models, in addition to utilizing third-party models, to enhance its AI product, “365 Copilot.” This move aims to reduce its reliance on OpenAI’s technologies and lower operational costs.

For several years, Microsoft has integrated OpenAI’s models, such as GPT-4, into “365 Copilot,” which launched in March 2023. However, high costs and speed issues experienced by corporate clients have motivated the company to explore alternative solutions.

Despite this shift, Microsoft has confirmed that OpenAI will remain a key partner, with the flexibility to customize models to meet the company’s specific needs, according to an official statement.

Microsoft is also working on developing smaller models like “Phi-4” and tailoring open-source models to enhance the efficiency and speed of “365 Copilot.” These improvements are intended to reduce operational costs, potentially benefiting customers through lower prices.