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Microsoft Replaces OpenAI Image Models With Its Own Tech It Claims Is 85% Cheaper
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channelnews
Microsoft AI chief Mustafa Suleyman (pictured below) said the company’s in-house models were faster, cheaper and capable of producing higher-quality results while improving user retention.
The company claims its Microsoft AI (MAI) image models are about 85% cheaper to operate in PowerPoint than comparable OpenAI technology.
OpenAI has expanded its use of rival cloud providers, while Microsoft has begun deploying its own MAI models and offering Anthropic’s Claude across parts of its product portfolio.
Microsoft still receives access to OpenAI models under the partnership, but must supply the expensive computing infrastructure needed to operate them.
The company has also begun replacing OpenAI and Anthropic models in other applications, claiming an MAI model used for common Excel tasks can match the performance of GPT-5.6 at a lower cost.