Microsoft joins AI cost-cutting trend by relying more on its own models

Microsoft has reportedly begun using its own MAI models to handle some user prompts in Excel and Word, reducing reliance on OpenAI and Anthropic systems. The move follows Microsoft’s launch of several new in-house AI models and reflects a broader push to control rising AI infrastructure costs.

The shift suggests major AI buyers are moving from rapid adoption to cost optimization, especially where cheaper internal models can handle routine tasks. It could pressure leading model providers to justify premium pricing while accelerating demand for specialized models tuned for specific products and workflows.