Microsoft Reportedly Trying to Bring Internal and Third-Party AI Models to 365 Copilot

Microsoft said to diversify from existing OpenAI AI infrastructure to reduce costs.

Advertisement
Written by Akash Dutta, Edited by Siddharth Suvarna | Updated: 24 December 2024 13:37 IST
Highlights
  • Recently, Microsoft added Gemini and Claude to the GitHub Copilot
  • Last year, 365 Copilot’s major attraction was the GPT-4 model integration
  • Microsoft introduced the Phi-4 AI model earlier this month

Microsoft is reportedly concerned about the AI speed and costs for its enterprise clients

Photo Credit: Microsoft

Microsoft is reportedly working on adding non-OpenAI artificial intelligence (AI) models to its 365 Copilot products. As per the report, the Redmond-based tech giant is trying to reduce its dependence on OpenAI's AI models due to concerns regarding speed and cost. To diversify, the company is said to be looking at both third-party models as well as internally developed models. Notably, Microsoft introduced 365 Copilot in March 2023 and one of its unique selling points (USP) was integration with the GPT-4 AI model.

Microsoft Aims to Reduce Reliance on OpenAI AI Model

According to a Reuters report, Microsoft is working on bringing internal and third-party AI models to its 365 Copilot products. Citing sources familiar with the matter, the publication claimed that the Windows maker is now actively trying not to depend solely on OpenAI's large language models (LLMs) to offer AI solutions to its enterprise clients.

Advertisement

If true, this will be a big departure from Microsoft's existing AI strategy. The company invested $1 billion (roughly Rs. 8,519 crores) in OpenAI in 2019, followed by another $10 billion (roughly Rs. 85,195 crores) in 2023, as part of its ongoing partnership with the AI firm. The partnership allows Microsoft early access to all the AI models developed by the firm.

As per the report, the tech giant's biggest concern at the time is the cost and speed of the OpenAI-developed AI models. This is a significant sticking point since Microsoft does not use these AI models for internal usage, but the technology is used to build AI products for its enterprise clients.

Advertisement

"We incorporate various models from OpenAI and Microsoft depending on the product and experience," Microsoft told Reuters.

To diversify, the tech giant is reportedly looking at third-party AI models as well as ways to develop LLMs in-house. The company has released several small language models (SLMs), with the latest being the open-source Phi-4 AI model. However, it has yet to develop a general-purpose LLM.

Advertisement

Recently, Microsoft began expanding its GitHub Copilot by allowing developers to access Google's Gemini and Anthropic's Claude AI models. Notably, the GitHub Copilot was the first AI product released by the company after the collaboration with OpenAI. It is possible that in the future, other 365 Copilot tools can also allow users to switch between different models.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Xiaomi Pad 8 Price Increased: Here's How Much It Costs Now
  2. Boat Launches Slazer Series in India for Personal Grooming Needs
  3. OnePlus 15, Nord 6, Pad 4 Receive Discounts During Community Sale 2026
  4. New OTT Releases This Week : Dhurandhar 2, Maa Behen, The Pyramid Scheme, and More
  5. Tecno Pova 8 to Launch in India With 8,000mAh Battery on This Day
  1. Sahara Meteorite May Be Fragment of a Lost Moon-Sized World, Study Suggests
  2. OpenAI Introduces Smarter ChatGPT Memory, Adds Dreaming Architecture
  3. Tecno Pova 8 India Launch Date Announced; Battery Size, Design, Colour Options Teased
  4. Samsung Reportedly Starts Internal Testing of Android 17-Based One UI 9 for Galaxy S25 Series
  5. Bybit Lists Western Union’s USDPT Stablecoin for Trading and Transfers
  6. Xiaomi Pad 8 Price Hiked in India: Here’s How Much It Costs Now
  7. Instagram Reels Influencing Nearly Half of Purchase Decisions in India, Meta Study Claims
  8. OnePlus Turbo 6X, OnePlus Turbo 6X Pro Colour Options, Price Range, Key Specifications Teased
  9. Sattendru Maarudhu Vaanilai Now Streaming Online: Where to Watch Jai’s Romantic Thriller Movie
  10. Asics GEL-Kayano 33 Launched in India With New Stability Tech, FluidSupport System
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.