Microsoft reportedly ramps up AI efforts to compete with OpenAI

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Microsoft is accelerating its push to compete with OpenAI, its longtime collaborator, by growing its personal highly effective AI fashions and exploring options to energy merchandise like Microsoft’s Copilot bot.

Microsoft has developed its personal AI “reasoning” fashions akin to fashions like OpenAI’s o1 and o3-mini, the The Data experiences. OpenAI is claimed to have refused Microsoft’s requests for technical particulars about how o1 works — stoking tensions between the companies.

Microsoft has additionally developed a household of fashions referred to as MAI which can be aggressive with OpenAI’s personal, Bloomberg experiences, and is reportedly contemplating providing them by means of an API later this yr. Parallel to these efforts, Microsoft is claimed to be testing different AI fashions from xAI, Meta, Anthropic, and DeepSeek as doable replacements for OpenAI expertise in Copilot.

Microsoft, which has invested round $14 billion in OpenAI to this point, has seemed to hedge its bets in various methods, together with hiring DeepMind and Inflection co-founder Mustafa Suleyman to guide the tech big’s AI efforts.

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