Microsoft has started routing work inside its own products away from OpenAI and Anthropic, and towards models it built itself. Satya Nadella laid out the reasoning in a long post on X, describing a system where Microsoft's in-house MAI models take over tasks once handled by frontier models from its partners.

Microsoft CEO Satya Nadella unveiled the MAI AI strategy, saying new AI models will lower costs, improve Copilot, Outlook, Excel and enterprise AI.

Microsoft has started routing work inside its own products away from OpenAI and Anthropic, and towards models it built itself. Satya Nadella laid out the reasoning in a long post…