Microsoft built its own AI models — and wants to pay OpenAI less
Seven new models, shown off at Build, promise costs up to ten times lower. Translation: leaning on OpenAI is starting to chafe.
For years, Microsoft was OpenAI’s best friend (and biggest backer). But expensive friendships eventually weigh on you — so the company decided to build alternatives at home. At its Build conference, it unveiled seven of its own models, the MAI family, with a not-so-subtle goal: lean less on OpenAI and trim the bill.
The headliner is MAI-Thinking-1, the company’s first reasoning model, with 35 billion active parameters. There are also models for coding, image generation, transcription and even voice. The pitch, though, is money: according to Microsoft’s own tests, these models can cost up to ten times less than the alternatives.
Why it matters
When the company runs models on its own cloud, Azure, it stops paying royalties to outsiders — and some of those savings can reach developers. For anyone building apps and services, that can mean lighter bills at month’s end.
For the rest of us, the signal is more interesting than the technical names: the AI market is moving away from a single supplier setting all the prices. And when real competition shows up, the one who usually wins is whoever’s footing the bill.
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