Microsoft Reportedly Exploring Non-OpenAI Models for 365 Copilot

The tech giant is seeking to reduce costs and improve speed by integrating internal and third-party AI models into its enterprise AI tools.

Microsoft is reportedly working to diversify the AI models powering its 365 Copilot by incorporating both in-house and third-party models.
The move is seen as an effort to reduce reliance on OpenAI's GPT-4 model, which has been criticized for being costly and slow for enterprise users.
Microsoft has already developed smaller models, such as the Phi-4, and is working to customize open-weight models to improve efficiency and reduce costs.
Sources suggest that Microsoft's leadership, including CEO Satya Nadella, is closely monitoring these efforts to refine its AI strategy.
Despite challenges with adoption and customer satisfaction, Microsoft claims that 70% of Fortune 500 companies are using 365 Copilot, with expectations of over 10 million paid users this year.