Non-OpenAI models coming to Microsoft 365 Copilot

Microsoft is reportedly working on diversifying its artificial intelligence (AI) offerings for its 365 Copilot products by adding non-OpenAI AI models. The company is seeking to reduce its reliance on OpenAI’s technology due to concerns over the cost and speed of its AI models. As part of this strategy, Microsoft is exploring third-party AI models and even looking to develop its own in-house models, marking a shift from its current approach.

The move is seen as a significant change from Microsoft’s previous AI strategy. In 2019, the company invested $1 billion in OpenAI, followed by another $10 billion investment in 2023. This partnership gave Microsoft early access to OpenAI's language models, such as GPT-4, which was integrated into Microsoft’s 365 Copilot in March 2023. However, despite this deep partnership, Microsoft now appears focused on reducing its reliance on OpenAI’s models for its enterprise clients due to performance and cost concerns.

A Reuters report cites sources familiar with the matter, revealing that Microsoft is actively working on incorporating internal and third-party AI models into its 365 Copilot products. The goal is to provide more flexible and efficient AI solutions to enterprise customers while maintaining the quality and speed of service. Microsoft has also acknowledged the importance of integrating various AI models into its products, depending on specific needs and user experiences.