Redmond, March 8, 2025 – Microsoft is developing its own AI reasoning models to reduce reliance on OpenAI. The company has tested models from xAI, Meta, and DeepSeek for Microsoft 365 Copilot while training its own MAI models, which rival OpenAI and Anthropic. Microsoft plans to integrate these models into Copilot and may release them as an API by year-end.
This move aligns with the industry’s shift toward cost-efficient AI using “distillation,” where smaller models are trained by larger ones to lower costs. Companies like DeepSeek have created OpenAI-level models for just $5 million, making AI more accessible on various devices.
