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US tech giant Microsoft is reportedly developing its own artificial intelligence reasoning models as it sets itself up to be another major player in the AI race, putting it in competition with its partner, OpenAI.
According to a report by The Information, the company is looking to cut ties with the ChatGPT developer despite the partnership being fruitful for both companies.
The company is already reportedly testing models from DeepSeek, Meta and xAI to replace OpenAI in powering its Microsoft 365 Copilot, the company’s flagship AI product, the main selling point of which has largely been its use of the GPT models.
However, the response to Copilot has been disappointing in enterprise, being expensive and not delivering high-performance results.
According to The Information, the company’s AI division is currently training its own models, which are being referred to as MAI.
The report also said the MAI models are performing at a level similar to OpenAI’s models on the standard benchmarks.
Additionally, it is training reasoning models using chain-of-thought techniques, which allows them to generate answers to complex prompts with reasonably high-level reasoning capabilities.
Microsoft’s AI division, which is led by Mustafa Suleyman, is already trialling the implementation of MAI in Copilot and replacing the OpenAI models.
Furthermore, Microsoft is weighing up releasing the MAI models later in 2025 for use by other developers as an API for their own apps.
Microsoft’s latest move puts pressure on the increasingly fractured relationship between it and OpenAI.
In January, Microsoft allowed OpenAI out of a contract that mandated it use its Azure hosting services for all hosting.
Additionally, according to Gizmodo, things have changed between the two since OpenAI CEO Sam Altman announced a deal with Oracle at the White House as part of the Stargate Project.
This is a stark contrast to 2022 when Microsoft CEO Satya Nadella said he didn’t see the value in Microsoft developing its own AI models when it can just use OpenAI’s.
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