Microsoft to reduce reliance on OpenAI by using in-house AI Models

Written By:
Pari Shukla

Reviewed By:
Vaibhav Jha

Microsoft To Use Third Party And In-House Ai Models To Train Their Microsoft Pilot 365

American Tech Giant Microsoft is aiming to reduce its dependency on OpenAI, enhance performance and reduce operational costs by integrating internal and third-party Artificial Intelligence (AI) models to its recent feature Microsoft 365 Copilot. Currently, Microsoft is under a contract with OpenAI to train its AI models and during its launch of 365 copilot in March 2023, they had credited OpenAI for its early success.

According to a report in Reuters, Microsoft’s CEO Satya Nadella, is closely tracking the achievement of the strategy, and Microsoft is now training the smaller language in-house models, including the Phi-4, and is customizing open-weight models for the efficiency and affordability of its AI assistant. Other Microsoft business units have also diversified their AI sources.

GitHub, acquired by Microsoft in 2018, began integrating models from Anthropic and Google in October, complementing OpenAI’s GPT-4. Similarly, the consumer chatbot Copilot now uses a mix of in-house and OpenAI technologies.

As per reports, Microsoft has faced criticism on its recent feature 365 Copilot which coordinates AI capabilities directly into Microsoft Word and PowerPoint for its pricing and utility. According to a Gartner survey, most IT companies are still using this tool. Microsoft 365 Copilot was launched in March 2023, and it gained popularity for incorporating the OpenAI GPT-4 model.

Also Read: Trump Appoints Sriram Krishnan as Senior AI Policy Advisor



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Pari Shukla is a Reporter and Writer at The Crypto Times. Apart from being a crypto enthusiast, Pari is a cricket aficionado and has also worked as a Sports Anchor and Writer. When not working, Pari likes to explore Turkish Culture.
Vaibhav Jha is an Editor and Content Head at The Crypto Times. He comes on board with a vast array of experience working as a journalist for leading national and international English newspapers. He has a penchant for research and storytelling is his forte. When not working, Vaibhav can be found watching Hindi classic movies or listening to 90's music.