Microsoft is shifting toward using its own AI models to cut costs as the industry faces rising expenses. The company has reportedly begun deploying in-house models to handle a portion of user prompts in its widely used programs, Excel and Word, according to Bloomberg. This move marks a departure from its previous strategy of relying on third-party models from OpenAI and Anthropic for large parts of Office 365. Microsoft still uses those models but has increasingly focused on developing its own AI agents.
Last month, at its Build conference, Microsoft announced the launch of seven new MAI models, including an agentic coder and a text-to-image generator. The company’s strategy aligns with a broader industry trend of cost-cutting amid the high expenses of AI services. Other major firms, including Amazon, Uber, Meta, and Accenture, have also reportedly taken steps to reduce spending. The industry is grappling with the financial burden of AI, with some companies considering Chinese models for more affordable solutions despite potential security concerns.
Microsoft did not comment further when contacted by TechCrunch. The trend reflects a shift away from the earlier 'tokenmaxxing' phase, where companies aggressively scaled AI usage, toward a more cautious approach. The financial strain of AI has become a significant issue, prompting firms to seek more cost-effective alternatives.
Source: techcrunch
