Microsoft Develops Proprietary AI Model to Rival OpenAI

San Francisco – Microsoft is developing its own artificial intelligence reasoning model that could compete with OpenAI and may eventually be made available to developers for commercial use, The Information reported, citing sources familiar with the matter. Reuters also covered the news.

According to the report, Microsoft has been testing models from xAI, Meta, and DeepSeek as potential alternatives to OpenAI.

As part of its strategy to reduce reliance on OpenAI, Microsoft has developed a new family of AI models named “MAI” under the leadership of Mustafa Suleyman. These models are designed to compete with the top offerings from OpenAI and Anthropic.

Additionally, Microsoft’s AI division is working on an advanced chain-of-thought-based reasoning model, which aims to enhance logical processing for solving complex problems.

The report further states that Microsoft plans to launch its MAI models as APIs by the end of 2025, allowing developers to integrate them into their own applications.