Microsoft shifts to in-house MAI models to cut AI costs
Original: Microsoft joins AI cost-cutting trend by relying more on its own models
Why This Matters
Signals a structural shift in enterprise AI spending as major tech firms prioritize cost efficiency over third-party model dependence.
Microsoft has begun deploying its own MAI models within Excel and Word to handle a portion of user prompts, reducing reliance on OpenAI and Anthropic. The move follows a broader industry trend of cost-cutting as AI service expenses continue to rise, Bloomberg reported on July 7, 2026.
Microsoft is increasingly replacing third-party AI models from OpenAI and Anthropic with its own in-house MAI models across widely used applications including Excel and Word. According to Bloomberg, the company has begun routing a certain percentage of user prompts through these homegrown models as part of a cost-savings strategy. Microsoft had previously publicized that large portions of Office 365 were powered by OpenAI and Anthropic software. The company still relies on those external providers but is expanding its own AI capabilities. At its annual Build conference last month, Microsoft announced seven new MAI models, including an agentic coder and a text-to-image generator. Microsoft declined to comment further when contacted by TechCrunch. The shift is part of a broader industry movement away from heavy third-party AI spending. Companies including Amazon, Uber, Meta, and Accenture have also reportedly taken steps to reduce AI-related costs. Some firms in Silicon Valley are even exploring Chinese AI models as more affordable alternatives for agentic workloads, despite associated security concerns.