Microsoft is testing an entirely proprietary AI model. This will increase competition with OpenAI

Microsoft has begun testing its first AI model, MAI-1-preview, which is fully trained in-house and should improve the capabilities of its Copilot assistant, it said in a corporate blog post. It could increase competition with ChatGPT chatbot developer OpenAI, in which the tech giant has invested more than $13 billion, CNBC noted .

Microsoft has begun public testing of its own AI model MAI-1-preview, which is designed to expand the capabilities of the Copilot assistant. It takes place on the LMArena website, whose users evaluate new developments. On Thursday, August 28, Microsoft's development ranked 13th among text-based models, behind products from Anthropic, DeepSeek, Google, Mistral, OpenAI and xAI.

"We have big ambitions for where we go next - refined models, an exciting roadmap for computing power, and the ability to reach billions of users with Microsoft products," Mustafa Suleiman, head of the company's AI division, wrote on social network X.

Until now, Microsoft has relied heavily on OpenAI models to power AI features in its core products - Bing, the Windows 11 operating system and others. Now it is trying to reduce that reliance, according to CNBC.

The company remains a key partner of the AI startup, it has invested more than $13 billion in it, and OpenAI itself, in turn, uses Microsoft's cloud infrastructure to run its models. However, the companies are clearly starting to compete in different ways, the channel notes. Last year, Microsoft listed OpenAI as a competitor in its annual report - over the years it has included tech giants like Amazon, Apple, Google and Meta - and OpenAI has begun turning to other cloud providers like CoreWeave, Google and Oracle to handle its heavy workload.

Microsoft shares rose 0.5% on Thursday, August 28. Since the beginning of the year, they have already added more than 20%. At the same time, the consensus target price Wall Street assumes their growth by another quarter. 97% of analysts recommend securities of the technology giant to buy, follows from the data of the portal MarketWatch.

This article was AI-translated and verified by a human editor