Microsoft is trying to extend the artificial intelligence powering its flagship product, Microsoft 365 Copilot, in significant ways. The technology giant is incorporating homegrown AI models and integrating third-party technologies with the apparent aim of cutting dependencies on the GPT-4 model from OpenAI, sources said. The motive would be cost efficiency, speed enhancement, and much more for enterprise users in terms of smoothness of experience.
Launched in March 2023, initially, it featured OpenAI’s GPT-4 as one of its central features in Microsoft 365 Copilot; however, those operating expenses and performance scale issues triggered the need to look around for other possible alternatives, and the company then started working on smaller versions, developing Phi-4, the latest model besides customizing open-weight models for accelerated AI solutions.
Microsoft Rethinks Artificial Intelligence, Plans Big for 365 Copilot
A Microsoft spokesperson confirmed that OpenAI is one of the key partners in the development of advanced AI models but added that the company integrates various models depending on specific product needs.
“We incorporate models from OpenAI and Microsoft depending on the product and experience,” the statement read.
Microsoft’s move is part of a larger strategy that seems to be unfolding across various business units. For example, GitHub Copilot’s coding assistant added models from Anthropic and Google in October as alternatives to OpenAI’s GPT-4. The revamped consumer chatbot Copilot now draws in-house AI models but incorporates OpenAI’s tech.
This initiative is closely tracked by Microsoft CEO Satya Nadella and other upper executives. Sources say that cutting the cost to build 365 Copilot allows it to make the pricing better for the customers by becoming a more viable proposition to businesses.
The adjustment points to the fact that it is on the path to maintaining the leadership edge with AI but also is aiming to bring performance combined with affordability for its end users.
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