Build 2026: Microsoft tops Google in image generation while playing catch-up on reasoning
Microsoft just shipped 7 new models at Build 2026—including its first reasoning model. Here's what changed.

Why it matters
Microsoft is closing gaps with Google on reasoning while establishing dominance in image generation. This signals a shift in the competitive model landscape where Microsoft is no longer purely dependent on OpenAI.
The key facts
6 to knowMicrosoft announced 7 in-house developed AI models at Build 2026
First Microsoft reasoning model release
New tuning method introduced
Autonomous background agent shipped
Microsoft claims superiority over Google in image generation
Microsoft identified as playing catch-up on reasoning capabilities
Go to the source
The Decoderthe-decoder.com
Publisher excerpt: At Build 2026, Microsoft announced seven new AI models developed in-house, including its first reasoning model. The company also introduced a new tuning method and an autonomous background agent.