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Microsoft develops AI models to compete with OpenAI

The new models are planned to launch via API this year, while also testing alternatives from other companies

Eleni Karasidi
Eleni Karasidi
Published: 07.03.2025
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Microsoft is actively developing its own generative AI models, aiming to compete with OpenAI, with which it has been collaborating for a long time. According to The Information, the company has created its own “thinking” models. It is known that OpenAI refused to provide Microsoft with the technical details of the o1 model, which caused some tension between the companies.

According to Bloomberg, the company plans to offer these and other models via API later this year. At the same time, Microsoft is testing alternative AI models from companies such as xAI, Meta, Anthropic, and DeepSeek, considering the possibility of replacing OpenAI technologies in its Copilot product.

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The company has already invested about fourteen billion dollars in OpenAI, but seeks to diversify its capabilities. In particular, Microsoft has hired DeepMind and Inflection co-founder Mustafa Suleyman to lead its AI efforts.

These steps demonstrate Microsoft’s serious intentions to strengthen its position in the generative AI market by offering users new opportunities and solutions. Attracting new partners and developing its own models may give the company greater independence in the development of products such as Copilot and expand the range of services for users worldwide.

OpenAI introduces new GPT-5.1 models for ChatGPT users
OpenAI prepares GPT-5.1 for complex user tasks
Microsoft launches MAI-Image-1 for AI image generation
Sora by OpenAI now available for Android users in seven countries
Japanese CODA Demands OpenAI to Halt Training of Sora 2
TAGGED:CopilotMicrosoftOpenAI
SOURCES:theinformation.com
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