Microsoft has been working on adding internal and third-party artificial intelligence models to power its flagship AI product Microsoft 365 Copilot, in a bid to diversify from the current underlying technology from OpenAI and reduce costs,

The effort is said to focus on the tech giant’s Microsoft 365 Copilot product. It’s an artificial intelligence assistant that ships with the eponymous productivity suite. Microsoft is reportedly working to integrate custom and open-source artificial intelligence models into the assistant, which is currently powered by technology from OpenAI.

Microsoft is exploring alternative language models for its Microsoft 365 Copilot to reduce reliance on OpenAI, addressing concerns about speed and cost for enterprise users. The company is training its own models and customizing open-weight models to enhance efficiency.

Microsoft is working to reduce its dependence on OpenAI for its flagship AI product, Microsoft 365 Copilot. Here's the reason.

Microsoft has been working on adding internal and third-party artificial intelligence models to power its flagship AI product Microsoft 365 Copilot, in a bid to diversify from the current underlying technology from OpenAI and reduce costs, sources familiar with the effort told Reuters.

"Microsoft is diversifying its AI strategy for Microsoft 365 Copilot by integrating internal and third-party AI models, including its latest Phi-4 model.