Microsoft launches new in-house AI models it says cut costs up to 89% versus OpenAI

Microsoft AI released MAI-Image-2.5-Pro and MAI-Voice-2-Flash in public preview, positioning them as production-ready models for tools including Bing, PowerPoint, Excel, GitHub Copilot, and Azure. The company says its in-house models can handle high-volume creative and speech workloads while cutting costs by as much as 89% versus OpenAI alternatives.

The launch signals Microsoft is reducing reliance on OpenAI by building more of its own AI stack for core products and enterprise customers. If performance holds up, model specialization could become a key strategy for lowering AI operating costs while preserving premium capabilities where needed.