Microsoft starts testing AI model that could escalate competition with OpenAI

Microsoft starts testing AI model that could escalate competition with OpenAI


Mustafa Suleyman, CEO of Microsoft AI, speaks at an event commemorating the 50th anniversary of the company at Microsoft headquarters in Redmond, Washington, on April 4, 2025.

David Ryder | Bloomberg | Getty Images

Microsoft has largely relied on OpenAI’s artificial intelligence models to power AI features in its key products. It’s trying to lessen that dependence.

The software company said Thursday that it’s begun publicly testing a homegrown AI model that could lead to enhancements to its Copilot assistant for consumers. The MAI-1-preview model is being tested on LMArena, a website where people can conduct evaluations.

“We will be rolling MAI-1-preview out for certain text use cases within Copilot over the coming weeks to learn and improve from user feedback,” Microsoft said in a blog post. The company has published a form where developers can request early access.

Meanwhile, Microsoft remains a key backer of OpenAI and strategic partner to the AI startup that’s now valued at about $500 billion. Microsoft has invested over $13 billion in OpenAI, which in turn relies on cloud infrastructure from Microsoft to run its models.

Microsoft draws on models from OpenAI to power features in Bing, the Windows 11 operating system and other products.

But the companies are clearly moving into competition in various ways. Last year, Microsoft added OpenAI to the list of competitors in its annual report. It’s a roster that for years has included megacap peers Amazon, Apple, Google and Meta.

And in recent months, OpenAI has turned to other cloud providers, such as CoreWeave, Google and Oracle, to meet heavy demand. The startup’s ChatGPT assistant now reaches 700 million people a week.

On LMArena, Microsoft’s new model was ranked 13th for text workloads on Thursday, below models from Anthropic, DeepSeek, Google, Mistral, OpenAI and xAI.

Microsoft said in its blog post that the model was refined with help from around 15,000 of Nvidia’s H100 graphics processing units, and it also has a working cluster of Nvidia GB200 chips.

“We have big ambitions for where we go next — model advancements, an exciting roadmap of compute, and the chance to reach billions of people through Microsoft’s products,” said Mustafa Suleyman, CEO of Microsoft’s AI unit, in a post on X.

Microsoft has previously developed small open-source language models under the name Phi.

MAI-1-preview represents “our first foundation model trained end to end in house,” Suleyman wrote on X.

Suleyman used to compete with OpenAI at startup Inflection. Last year, Microsoft hired him and many of his Inflection colleagues. Before that, Suleyman was a co-founder of DeepMind, an AI research startup that Google bought in 2014.

Suleyman’s group inside Microsoft has been expanding, with about two dozen people coming from Google’s DeepMind AI lab in recent months.

WATCH: OpenAI CFO Sarah Friar: Biggest issue we face is being ‘constantly under compute’

OpenAI CFO Sarah Friar: Biggest issue we face is being 'constantly under compute'



Source

CNBC Daily Open: Tim Cook finds the new Apple of his eye
World

CNBC Daily Open: Tim Cook finds the new Apple of his eye

Apple’s John Ternus speaks during Apple’s annual worldwide developer conference (WWDC) in San Jose, California, June 5, 2017. Stephen Lam | Reuters Hello, this is Hui Jie writing to you from Singapore, while Leonie is away preparing for CNBC’s CONVERGE LIVE event, featuring names like former Canadian PM Justin Trudeau and Capital Group CEO Mike […]

Read More
European stocks to open higher as U.S.-Iran ceasefire deadline looms
World

European stocks to open higher as U.S.-Iran ceasefire deadline looms

Traders work on the floor of the New York Stock Exchange during morning trading on April 20, 2026 in New York City. Michael M. Santiago | Getty Images LONDON — European stocks are expected to open broadly higher on Tuesday as investors gauge developments ahead of the expiry deadline for the two-week ceasefire between the […]

Read More
‘New cards on the battlefield’: U.S., Iran ratchet up rhetoric with peace talks in limbo
World

‘New cards on the battlefield’: U.S., Iran ratchet up rhetoric with peace talks in limbo

The front page of the Javan newspaper (L) and the front page of the Jam Jam newspaper, which features a cartoon of US President Donald Trump drowning in the Strait of Hormuz with the headline “Marine Bluff,” are on sale at a newsstand in Tehran on April 13, 2026. Atta Kenare | Afp | Getty […]

Read More