Microsoft Dumps OpenAI, Anthropic Models to Cut Costs

Microsoft is shifting away from OpenAI and Anthropic AI models in favor of its own MAI model family to reduce costs, according to Bloomberg. Tens of thousands of prompts in Excel and Outlook previously handled by third-party models are now routed through MAI models, though this remains a small fraction of overall usage. Microsoft AI CEO Mustafa Suleiman called Anthropic extremely expensive and stated the goal is to eliminate that cost entirely. The move reflects a broader industry trend, with Amazon, Meta, Accenture and Uber also cutting AI spending. Microsoft's OpenAI partnership deal expires in 2032.