Thursday · October 15, 2026

 ·  Daily  ·  Newsletters

Resonance network: Quantum InsiderSpace Insider

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.

Trending today

USA flag
Policy & Government · National Strategies

Trump Announces $2.4B in AI Compute Pledges From Nvidia, OpenAI and Other Tech Giants for Federal Genesis Mission

Business & Markets · Enterprise

Google DeepMind to Open Robotics Lab in Boston Area

Business & Markets

Character.AI Files for Chapter 11 Bankruptcy and Agrees $20M Asset Sale to Disney

Business & Markets

PayJoy to Acquire Strategic Assets of Finia AI, Advancing AI Underwriting and Financial Product Innovation

Business & Markets

Visorway Raises Angel-Backed Pre-Seed Round at CHF 3M Valuation to Scale AI-Native Procurement Services

The AI economy, every weekday morning

The daily briefing on LinkedIn. Free, one tap to follow.

Exclusives

Exclusive

South Korea’s AI G3 Strategy: Decoded

Scale-ups to Watch

10 Switzerland-Based AI Scale-Ups You Need to Know in 2026

network, blockchain, digital, hand, web, community, artificial, intelligence, steering, interfaces, bokeh, future, digitization, transformation, change, blockchain, blockchain, blockchain, blockchain, blockchain, transformation
Exclusive

Why Crypto Could Be AI’s Payment Layer: BlackRock Sees Stablecoins Connecting Commerce and Compute

AI Predictions
Exclusive

Why AI Predictions Often Get The Technology Right But The Timeline Wrong

Scale-ups to Watch

10 CEE & Baltics-Based AI Scale-Ups You Need to Know in 2026

More in Business & Markets

Latest from the same section
Business & Markets · Enterprise

BigBear.ai Secures More Than $225M in Contract Awards Across Homeland Security, Defense, Intelligence and Federal Civilian Agencies

8 hours ago
Business & Markets · Enterprise

SpaceX Super Intelligence Folds Grok, Cursor and X Premium Into a Single AI Subscription

9 hours ago
Business & Markets · Enterprise

Neura Robotics Unveils ‘Neuron AI’ Foundation Model for Physical AI

13 hours ago
Business & Markets · Enterprise

Ondas and Palantir Launch Regna AI for Sovereign Defense Systems

1 day ago

The AI economy, every weekday morning

The daily briefing plus the weekly Scale-ups to watch edition. Free, no spam, unsubscribe any time.