🖥 Microsoft is quietly reducing its reliance on OpenAI and Anthropic inside Office

According to reports, some AI features in apps like Excel and Outlook are now powered by Microsoft’s own MAI models, with tens of thousands of prompts each week being handled in-house instead of by external AI providers. Why the shift? One word: cost. Running AI across hundreds of millions of Office users is incredibly expensive, and relying on frontier models from outside companies quickly adds up. By using its own models, Microsoft can cut costs while keeping tighter control over performance and infrastructure. The move also aligns with Microsoft’s bigger AI strategy. In June, the company unveiled seven MAI models covering reasoning, coding, image generation, voice, and transcription. Microsoft says its Excel-optimized MAI model can deliver GPT-5.4-level performance while being up to 10× more efficient.

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