As the cost of AI continues to rise, companies are looking for ways to reduce costs. The latest example is Microsoft, which has reportedly begun implementing cost-cutting strategies by reducing its reliance on software from OpenAI and Anthropic and instead implementing its own in-house model.
In fact, for Excel and Word, two of its most widely used programs, Microsoft has started using homegrown MAI models to respond to a percentage of user prompts, Bloomberg reported on Tuesday. The company has previously touted the fact that the majority of Office 365 leverages both OpenAI and Anthropic models.
Microsoft still relies on these third-party models, but it’s also increasingly trying to launch its own AI agents. Last month, the company announced the release of seven new MAI models at its annual Build conference, including an agent coder and a text-to-image generator.
When TechCrunch reached out for comment, Microsoft said it had nothing further to share.
Microsoft’s apparent cuts are part of a broader trend. After the brief craze of “tokenmaxxing” earlier this year, recent months have been filled with news of tech companies acting more frugally. Other large companies, including Amazon, Uber, Meta and Accenture, are also reportedly cutting back on spending.
The sheer cost of providing and purchasing AI services has been a controversial part of the industry. Sticker shock is intensifying in some parts of Silicon Valley, with some companies reportedly turning to Chinese models for more affordable agent solutions despite concerns about potential security issues.
