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Microsoft Deploys In-House MAI Models to Cut AI Costs Amid Industry-Wide Spending Pullback

Microsoft has reportedly begun relying more heavily on its own in-house MAI models rather than third-party AI from OpenAI and Anthropic, according to a Bloomberg report. The company has started using MAI models to handle a portion of user prompts within Excel and Word, marking a shift from its previous approach of powering large parts of Office 365 through OpenAI and Anthropic systems. Microsoft continues to use both third-party models but has increasingly invested in building its own AI capabilities, having announced seven new MAI models, including an agentic coder and a text-to-image generator, at its Build conference last month. Microsoft told TechCrunch it had nothing further to share when asked for comment.

The move reflects a broader industry trend toward cost reduction following a period of heavy AI spending earlier in the year. Companies including Amazon, Uber, Meta and Accenture have reportedly taken similar steps to limit AI expenditure. The rising cost of AI services has become an increasingly contentious issue across the industry, with some companies reportedly turning to cheaper Chinese models for agentic tasks, despite concerns raised about potential security risks associated with their use.

James Dargan
About the author
James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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