Microsoft shares rose 1.75% on Tuesday, outperforming a weaker Nasdaq. The move came after reports that the company is starting to reduce its reliance on expensive third-party AI models.
Instead, Microsoft is reportedly shifting more work to its own internally developed artificial intelligence technology.
Microsoft Uses Its Own AI Models in Excel and Outlook
According to Bloomberg, Microsoft has quietly started using its new in-house MAI models inside Excel and Outlook.
These models are now handling tens of thousands of AI prompts each week across the company’s spreadsheet and email apps.
The information came from a person familiar with the matter, who spoke anonymously.
Microsoft Reduces Reliance on OpenAI and Anthropic
Microsoft’s workplace software has previously depended heavily on external AI leaders such as OpenAI and Anthropic.
However, the latest report shows that Microsoft is now moving more AI activity onto its own systems.
This appears to be one of the clearest signs yet that Microsoft is expanding the use of its proprietary MAI technology across its core products.
AI Cost Control Becomes a Bigger Priority
The shift marks an important change in Microsoft’s artificial intelligence strategy.
AI tools require large amounts of computing power, which can make them expensive to operate at scale. By using more of its own models, Microsoft may be trying to lower the infrastructure costs behind products such as Copilot.
At the same time, the company needs to keep its main software products fast, reliable, and competitive.
Microsoft’s AI Strategy Enters a New Phase
Microsoft remains one of the biggest players in the AI race. But the company now appears focused on improving efficiency as well as growth.
If its in-house AI models can reduce costs without hurting performance, Microsoft could strengthen the long-term profitability of its AI-powered software business.
