{"id":250613,"date":"2026-07-07T19:58:20","date_gmt":"2026-07-07T19:58:20","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2026\/07\/07\/microsoft-joins-ai-cost-cutting-trend-by-relying-more-on-its-own-models-techcrunch\/"},"modified":"2026-07-07T19:58:20","modified_gmt":"2026-07-07T19:58:20","slug":"microsoft-joins-ai-cost-cutting-trend-by-relying-more-on-its-own-models-techcrunch","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2026\/07\/07\/microsoft-joins-ai-cost-cutting-trend-by-relying-more-on-its-own-models-techcrunch\/","title":{"rendered":"Microsoft joins AI cost-cutting trend by relying more on its own models | TechCrunch"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p id=\"speakable-summary\" class=\"wp-block-paragraph\">As <a href=\"https:\/\/www.barrons.com\/articles\/ai-spending-alphabet-amazon-meta-b22f1044\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">AI costs continue to rise<\/a>, companies are looking for ways to cut back. The most recent example is Microsoft, which has reportedly begun to deploy a cost-savings strategy by relying less on software from OpenAI and Anthropic and instead deploying its own in-house models.<\/p>\n<p class=\"wp-block-paragraph\">Indeed, when it comes to two of its most widely used programs \u2014 Excel and Word \u2014 Microsoft has begun to use its homemade <a href=\"https:\/\/github.blog\/changelog\/2026-06-26-mai-code-1-flash-for-copilot-business-and-copilot-enterprise\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">MAI models<\/a> to respond to a certain percentage of user prompts, Bloomberg <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-07-07\/microsoft-replaces-openai-anthropic-with-own-ai-in-some-apps\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">reported<\/a> Tuesday. In the past, the company had advertised the fact that large parts of Office 365 are <a href=\"https:\/\/www.microsoft.com\/en-us\/microsoft-365\/blog\/2025\/09\/29\/vibe-working-introducing-agent-mode-and-office-agent-in-microsoft-365-copilot\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">powered by models from both OpenAI and Anthropic<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">While Microsoft still relies on those third-party models, it has also increasingly sought to stand up its own AI agents. Last month, at its annual Build conference, the company announced the <a href=\"https:\/\/microsoft.ai\/news\/building-a-hillclimbing-machine-launching-seven-new-mai-models\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">launch of seven new MAI models<\/a>, including an agentic coder and a text-to-image generator.<\/p>\n<p class=\"wp-block-paragraph\">When reached for comment by TechCrunch, Microsoft said that it had nothing further to share.<\/p>\n<p class=\"wp-block-paragraph\">Microsoft\u2019s apparent cutbacks are part of a broader trend. After a brief blitz of \u201ctokenmaxxing\u201d earlier this year, the last few months have seen a news cycle awash in stories about tech companies acting significantly more thrifty. Other large companies \u2014 like <a href=\"https:\/\/www.nytimes.com\/2026\/06\/18\/technology\/ai-token-minimizing.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Amazon<\/a>, <a href=\"https:\/\/techcrunch.com\/?p=3128791&amp;preview=true&amp;_thumbnail_id=3100056\" target=\"_blank\" rel=\"noopener\">Uber<\/a>, <a href=\"https:\/\/www.theinformation.com\/articles\/tokenminimizing-meta-moves-curb-employee-ai-usage-ai-costs-reach-billions\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Meta<\/a>, and <a href=\"https:\/\/techcrunch.com\/2026\/06\/24\/companies-are-scrambling-to-stop-employees-from-maxing-out-ai-budgets-with-small-tasks\/\" target=\"_blank\" rel=\"noopener\">Accenture<\/a> \u2014 have also reportedly made moves to curb spending.<\/p>\n<p class=\"wp-block-paragraph\">The immense cost of providing and buying AI services has become a controversial part of the industry. The sticker shock has gotten so bad in some parts of Silicon Valley that some companies <a href=\"https:\/\/www.theatlantic.com\/technology\/2026\/07\/glm-5-2-china-cheap-ai-agents\/687828\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">are reportedly<\/a> looking to Chinese models for more affordable agentic solutions \u2014 despite some concerns over <a href=\"https:\/\/www.washingtonpost.com\/national-security\/2026\/07\/06\/why-anthropic-alleges-chinese-firms-are-distilling-knowledge-claude\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">potential security issues<\/a>.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/techcrunch.com\/2026\/07\/07\/microsoft-joins-ai-cost-cutting-trend-by-relying-more-on-its-own-models\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As AI costs continue to rise, companies are looking for ways to cut back. The most recent example is Microsoft, which has reportedly begun to deploy a cost-savings strategy by relying less on software from OpenAI and Anthropic and instead deploying its own in-house models. Indeed, when it comes to two of its most widely [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":250614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":{"0":"post-250613","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tech"},"_links":{"self":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/250613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=250613"}],"version-history":[{"count":0,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/250613\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/250614"}],"wp:attachment":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=250613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=250613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=250613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}