Copilot goes cheap as Microsoft phases out OpenAI and Anthropic models to cut costs
Microsoft just quietly swapped OpenAI out of Copilot. Here's what that means for your AI stack.
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.
The key facts
6 to knowMicrosoft 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
Go to the source
The Decoderthe-decoder.com
Publisher excerpt: 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…