The cost of new AI models can add up quickly. A new “o3” model from OpenAI costs $20 per task. Why Microsoft is paying close attention to the price.

Microsoft and OpenAI have had something of a symbiotic relationship, with the former giving billions of capital to a startup AI lab and in return gaining early access to cutting-edge models that are now baked into Microsoft’s suite of productivity software.

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Microsoft is reportedly diversifying its AI strategy by integrating alternative models into its Microsoft 365 Copilot product, reducing reliance on OpenAI to manage costs and improve efficiency.

Microsoft is planning to integrate internal and third-party artificial intelligence (AI) models into its flagship AI assistant, Microsoft 365 Copilot. The move comes as the tech giant looks to reduce its dependence on OpenAI 's tech and save costs.

Microsoft has been working on adding internal and third-party artificial intelligence models to power its flagship AI product Microsoft 365 Copilot, in a bid to diversify from the current underlying technology from OpenAI and reduce costs,

When Microsoft announced 365 Copilot in March 2023, a major selling point was that it used OpenAI's GPT-4 model. Microsoft is also seeking to reduce 365 Copilot's reliance on OpenAI due to concerns about cost and speed for enterprise users, according to the sources, who requested anonymity to discuss private matters.

Google reportedly wants the US Federal Trade Commission (FTC) to end Microsoft's exclusive cloud deal with OpenAI that requires anyone wanting access to OpenAI's models to go through Microsoft's servers.

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Microsoft is exploring alternative language models for its Microsoft 365 Copilot to reduce reliance on OpenAI, addressing concerns about speed and cos