Microsoft shares rose 1.75% on Tuesday, outperforming a subdued Nasdaq after reports indicated the technology giant has begun replacing some third-party artificial intelligence (AI) models with its own internally developed systems.
According to Bloomberg, Microsoft has quietly deployed its proprietary MAI AI models in Excel and Outlook, where they are already processing tens of thousands of AI prompts each week. The report, citing a person familiar with the matter, suggests the rollout is more extensive than previously known.
The move marks a notable shift in Microsoft’s AI strategy. While the company’s flagship productivity applications have largely relied on external AI providers, including OpenAI and Anthropic, the increased use of its in-house models reflects an effort to reduce dependence on third-party technology.
The transition is also expected to help Microsoft lower the substantial infrastructure costs associated with running AI-powered services, while maintaining the performance and capabilities of its widely used workplace applications.
The reported deployment highlights Microsoft’s growing investment in developing its own AI capabilities as competition intensifies among major technology firms seeking greater control over the software and infrastructure that power generative AI services.
Although Microsoft has not publicly disclosed the full extent of the MAI rollout, the latest developments suggest the company is increasingly integrating its proprietary AI technology across its productivity ecosystem as it seeks to improve efficiency and strengthen its long-term AI strategy.
