The DropJuly 7, 2026via The Decoder
Copilot goes cheap as Microsoft phases out OpenAI and Anthropic models to cut costs
Why it matters
Microsoft is systematically replacing third-party AI models (OpenAI, Anthropic) with proprietary MAI models across productivity apps to slash costs—a strategic move that signals both margin pressure in the AI-as-a-feature market and potential performance trade-offs for users.
Key signals
- Microsoft replacing OpenAI and Anthropic models with proprietary MAI models
- Tens of thousands of queries per week already running on MAI models
- Deployment scope: Excel, Outlook, and other Copilot products
- Mustafa Suleyman stated goal to 'ultimately eliminate' cost of external models
- Trade-off: Potential performance reduction at same price point for customers
- Published: July 7, 2026
The hook
Microsoft just quietly swapped OpenAI out of Copilot. Here's what that means for your AI stack.
Microsoft is replacing AI models from OpenAI and Anthropic with its own MAI models in products like Excel and Outlook. Tens of thousands of queries per week already run through them. AI chief Mustafa Suleyman wants to "ultimately eliminate" the cost of external models. For Copilot customers, that could mean less performance for the same price.