Microsoft and OpenAI have worked closely since 2019, with Microsoft investing over $13 billion in the ChatGPT maker. However, the partnership seems to be shifting. Microsoft’s AI division, now led by Mustafa Suleyman, co-founder of DeepMind and Inflection, has been expanding its in-house capabilities.

The major investor in OpenAI has been looking to cut ties as the two companies start looking more like competitors.

Microsoft Microsoft is accelerating its push to compete with OpenAI, its longtime collaborator, according to a report.

Microsoft is increasing its push to compete with OpenAI, its longtime collaborator, by developing its own AI models and exploring alternatives to power products like Microsoft's Copilot bot. The firm is creating its own AI "reasoning" models comparable to OpenAI's o1 and o3-mini, The Information reports.

Microsoft and OpenAI did not immediately respond to Reuters' requests for comment. Reuters reported exclusively in December that Microsoft has been working on adding internal and third-party AI models to power its flagship AI product Microsoft 365 Copilot,

Microsoft Corp. has created in-house artificial intelligence models it believes can go toe-to-toe with industry leaders including partner OpenAI, according to a person familiar with the situation.

Microsoft Corp. has developed a series of large language models that can rival algorithms from OpenAI and Anthropic PBC, multiple publications reported today. Sources told Bloomberg that the LLM series is known as MAI.

Self-sufficiency in AI has become a top priority for the company, but homegrown models rumored for release last year are still in testing.