Copilot goes cheap as Microsoft phases out OpenAI and Anthropic models to cut costs
Microsoft is phasing out AI models from OpenAI and Anthropic in its products, replacing them with its own MAI models. This change could impact Copilot customers, who may see reduced performance for the same price.
What happened
Microsoft is replacing AI models from third-party providers OpenAI and Anthropic with its own models, called MAI. These new models are already being used in tens of thousands of queries per week in products like Excel and Outlook. As a result, Microsoft's AI chief wants to eliminate the cost of external models.
Why it matters
As a business owner, you may rely on Copilot for tasks like writing emails or generating reports. If Microsoft shifts to its own models, you might see a decrease in performance for the same price. This could impact your productivity and workflow.
The takeaway
You may want to reassess your expectations for Copilot's performance and consider alternative tools if you rely on its capabilities. Microsoft's shift to in-house models could also lead to future cost savings, but at the expense of potentially reduced functionality.
Our plain-English take, written from public reporting for operational business owners. Always read the original for full context.
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