Microsoft Abandons OpenAI for In-House AI in Office Apps
Microsoft has secretly swapped out thousands of AI-powered prompts in its Excel and Outlook applications with its own homegrown technology, Bloomberg reports. The shift marks a significant break from the company’s reliance on OpenAI and Anthropic, its former AI partners.
Microsoft’s new AI system, MAI, is now completing tasks in the company’s spreadsheet and email apps. MAI’s integration is reportedly widespread, affecting a substantial number of users.
Ai Partnership Fallout
This move comes after a tumultuous year in the AI partnership landscape. Microsoft’s relationship with OpenAI, which it invested $10 billion into, has been strained. In May, **OpenAI laid off 25% of its workforce**, citing a need to tighten its belt amidst economic uncertainty. While the exact reasons behind Microsoft’s decision to ditch OpenAI’s technology remain unclear, the suddenness of the transition suggests a more urgent motivation.
Practical Implications
This shift has practical implications for users of Microsoft Office. Some have reported noticing subtle changes in the AI-driven suggestions and prompts in Excel and Outlook. Although the overall performance of MAI seems to be on par with its predecessors, users may experience slight variations in AI-driven functionality. What this means: if you’re heavily reliant on AI-powered features in Excel and Outlook, you can expect a slightly different experience going forward. You might need to adapt to new suggestions or prompts generated by Microsoft’s in-house AI, MAI.
