Microsoft reportedly plans AI competition with OpenAI

Microsoft is reportedly moving towards reducing its reliance on OpenAI by developing its own generative AI models, known as MAI, which have shown performance comparable to those from OpenAI and Anthropic. This shift comes amid concerns over the costs and limitations of ChatGPT, leading Microsoft to explore alternatives from other companies like Elon Musk's xAI and Meta. The company's AI division, under Mustafa Suleyman, is pushing for more control over its models and costs, seeking to build in-house solutions despite past investments exceeding $13 billion in OpenAI. Tensions have emerged as Microsoft has pressed OpenAI for technical details on its latest models, hinting at a competitive shift in their relationship. Meanwhile, Microsoft has recently let OpenAI out of a contract requiring it to use Azure for hosting, further indicating its intent to diversify its AI strategy. The evolving landscape suggests that Microsoft is keen on establishing itself as a key player in the AI field without being overly dependent on a single partner.