Microsoft is reportedly working on creating its own artificial intelligence (AI) reasoning models to rival OpenAI and may offer them for sale to developers.
The company has begun testing out models from xAI, Meta, and DeepSeek as potential OpenAI replacements in Copilot, according to the media reports.
Microsoft has been working to reduce its reliance on the ChatGPT maker, despite its early partnership with the startup positioning it as a leader in the competitive AI race among major tech companies.
The Redmond, Washington-based company, a major backer of OpenAI, has begun testing out models from xAI, Meta, and DeepSeek as potential OpenAI replacements in Copilot, according to the report.
The media reports say that these new AI models being developed by Microsoft are expected to focus on advanced reasoning capabilities, which would allow the models to better understand complex problems and deliver more accurate and insightful results.
According to The Information report, Microsoft’s AI division, led by Mustafa Suleyman, has completed the training of a family of models, internally referred to as MAI, which perform nearly as well as the leading models from OpenAI and Anthropic on commonly accepted benchmarks.
The team is also training reasoning models, which use chain-of-thought techniques, a reasoning process that generates answers with intermediate reasoning abilities when solving complex problems, that could compete directly with OpenAI’s, the report said.
Recently, Microsoft signed an agreement with the Government of Kuwait, represented by the Central Agency for Information Technology (CAIT) and the Communication and Information Technology Regulatory Authority (CITRA), in order to establish an Azure Region in Kuwait.
The partnership to establish an AI-powered Azure Region is to advance local AI capabilities, drive economic growth, and foster AI innovation across industries.
