Microsoft is the latest Silicon Valley giant to cut back on its AI spending.
In Brief
Posted:
12:58 PM PDT · July 7, 2026
Image Credits:JASON REDMOND/AFP / Getty Images
As AI costs continue to rise, companies are looking for ways to cut back. The most recent example is Microsoft, which has reportedly begun to deploy a cost-savings strategy by relying less on software from OpenAI and Anthropic and instead deploying its own in-house models.
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Microsoft’s push to cut costs following thousands of layoffs has reached its premier artificial intelligence (AI) partnerships, a…
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Microsoft faces soaring expenses as advanced AI models like Claude and ChatGPT become increasingly costly, prompting the company…
The company has reportedly begun phasing out models from OpenAI and Anthropic for certain tasks.
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