Microsoft 365 Copilot Expands Its AI Models, Reports Reuters

Investing.com -- Microsoft (NASDAQ:MSFT) is integrating internal and third-party AI models into its AI product, Microsoft 365 Copilot. According to a Monday report based on familiar sources, this move aims to diversify from existing technologies provided by OpenAI and reduce costs.

According to the report, Microsoft, a major backer of OpenAI, is trying to lessen its dependence on the AI initiative. This strategy indicates a shift from previous years, where Microsoft highlighted early access to OpenAI's models.

The tech giant is also seeking to reduce 365 Copilot's reliance on OpenAI due to cost and speed concerns for corporate users. A spokesperson from Microsoft stated to Reuters that OpenAI continues to be a partner for boundary models for the company. Boundary models are defined as the most advanced AI models currently available. The existing agreement between the two companies allows Microsoft to modify OpenAI's models.

According to the report, Microsoft is training its smaller models, including the latest Phi-4, and is customizing other open-weight models to enhance the speed and efficiency of 365 Copilot. According to one source, the goal is to lower the operating costs for 365 Copilot and potentially pass these savings on to the end-users.

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