Microsoft is starting to swap out third-party AI models from OpenAI and Anthropic for Microsoft’s own in-house systems in selected features of its software products, according to multiple reports. The change is intended to reduce AI-related operating costs and lower financial dependence on external AI providers. Bloomberg reports that tasks are routed to Microsoft’s internally developed “MAI” models when cost considerations or data residency requirements make them a better fit. The Next Web characterizes the rollout as incremental rather than a complete switch: OpenAI and Anthropic models continue to handle most production traffic inside Copilot, while Microsoft’s MAI models take on a growing share of specific workloads. Times of India similarly reports that Microsoft is increasing the use of its own MAI models, including for large volumes of prompts, as part of a broader cost-cutting approach. The reports do not indicate a full timeline for replacing external models across all products. Overall, Microsoft’s move focuses on selectively using internal AI capacity within parts of its app ecosystem to improve cost efficiency while maintaining current service coverage.