Business 74% 1 min readJul 7, 2026, 6:35 PM

Copilot goes cheap as Microsoft phases out OpenAI and Anthropic models to cut costs

30-second summary

Microsoft is swapping OpenAI and Anthropic models for its own MAI models in Copilot to reduce costs, potentially impacting performance for users.

Copilot goes cheap as Microsoft phases out OpenAI and Anthropic models to cut costs
Key takeaways
  • Microsoft is replacing OpenAI and Anthropic models with its own MAI models in Copilot to cut costs.
  • Tens of thousands of weekly queries are already running through the new in-house models.
  • The shift may reduce performance for users despite lower costs.
  • AI chief Mustafa Suleyman aims to eliminate external model expenses entirely.
Full story

Microsoft is transitioning its Copilot AI assistant from models developed by OpenAI and Anthropic to its own in-house MAI models. The shift aims to significantly reduce costs, with tens of thousands of weekly queries already running through the new models. AI chief Mustafa Suleyman has stated the goal is to "ultimately eliminate" the expense of using external models entirely.

The move is part of a broader strategy to make Copilot more affordable for customers, though it may come at the cost of performance. Users could experience differences in response quality or capabilities compared to the previous models. The transition is already underway in products like Excel and Outlook, signaling a long-term shift in Microsoft's AI infrastructure strategy.

Source: Copilot goes cheap as Microsoft phases out OpenAI and Anthropic models to cut costs. Read the full piece at the source.

Why this matters
Developers

Developers using Copilot may need to adapt to changes in model behavior and performance.

Businesses

Businesses relying on Copilot could see cost savings but potential trade-offs in AI response quality.

Investors

Investors should monitor Microsoft's AI cost-cutting strategy and its impact on Copilot's market position.

Everyone

Users may experience changes in Copilot's performance as Microsoft shifts to in-house AI models.

Glossary
MAI models
Microsoft's in-house AI models designed to replace third-party models like those from OpenAI and Anthropic.
Sources · 1
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