Microsoft Developing AI Reasoning Models to Compete with OpenAI
Microsoft is developing in-house AI reasoning models to compete with OpenAI and may sell them to developers, according to reports from The Information and Reuters. The company has begun testing out models from xAI, Meta, and DeepSeek as potential OpenAI replacements in Copilot. This move by Microsoft is aimed at diversifying from the current underlying technology from OpenAI and reducing costs. Microsoft and OpenAI have not yet responded to the reports.