Microsoft edges higher as in-house AI push takes aim at copilot costs

Investing.com -- Microsoft (NASDAQ: MSFT) shares ticked up 1.75% on Tuesday, outperforming a sluggish Nasdaq following reports that the tech giant is beginning to ditch pricey third-party AI models in favor of its own homegrown technology.

According to Bloomberg, Microsoft has quietly deployed its newly minted, internally developed MAI models directly into Excel and Outlook. The under-the-hood swap is already handling tens of thousands of AI prompts a week across the spreadsheet and email apps, an anonymous source familiar with the matter revealed.

While Microsoft’s flagship workplace apps previously leaned heavily on outside pioneers like OpenAI and Anthropic, this marks the first time the true scale of its proprietary MAI rollout has come to light. The tactical pivot signals a critical evolution in Microsoft’s AI playbook: aggressively slashing the massive infrastructure costs of artificial intelligence while trying to keep its core software suite running at full steam.

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