Microsoft Ditches OpenAI to Build Own AI

Microsoft is shifting from relying on OpenAI's technology to developing its own AI models, with CEO Mustafa Suleiman targeting "state-of-the-art" capabilities by 2027. A previously restrictive clause in Microsoft's OpenAI contract had blocked this move until it was removed in a renegotiated deal last year. The company is already building frontier-level computing infrastructure using Nvidia GB200 chips and has released a speech transcription model outperforming rivals in 11 major languages. However, Microsoft's GPU spending spree may drive up consumer prices for RAM, GPUs, and SSDs.