Microsoft is increasing its efforts to end its reliance on OpenAI, with the latest report indicating the company is working on LLM models to take on OpenAI and Anthropic.
Microsoft has had a long and profitable partnership with OpenAI, being one of its largest investors and reaping the benefits of its advanced AI models. The relationship appeared to cool, however, after the AI firm’s boardroom coup that saw CEO Sam Altman briefly ousted from the company.
In the months since the coup and Altman’s return, Microsoft has increasingly focused on developing its own in-house models, but most of them have been much small AI models designed for more focused tasks. Bloomberg reports that Microsoft is now developing a family of more advanced, general-purpose AI models, ones it believes can take on the best that industry leaders OpenAI and Anthropic have to offer.
The report comes on the heels of changes to Microsoft and OpenAI’s relationship, including the former no longer being the exclusive cloud provider for the AI firm. In addition, Microsoft has moved quickly to incorporate other AI models into its products, including DeepSeek R1.
In addition to concerns about OpenAI’s internal turmoil—which the endless stream of executives and engineers leaving the company would suggest is still in play—Microsoft has reportedly grown increasingly concerned “about cost and speed for enterprise users,” leading it to look for viable alternatives to ChatGPT.
“We incorporate various models from OpenAI and Microsoft depending on the product and experience,” Microsoft said in the statement in late 2024.
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