03:25 PM EST, 12/23/2024 (MT Newswires) -- Microsoft ( MSFT ) is reducing reliance on OpenAI's models for its 365 Copilot, diversifying with internal and third-party artificial intelligence models to lower costs, Reuters reported Monday, citing sources familiar with the situation.

The company is addressing concerns about cost and speed for enterprise users by training smaller in-house models, such as Phi-4, and customizing open-weight models to improve efficiency and performance.

These efforts, closely overseen by Microsoft ( MSFT ) leadership, including CEO Satya Nadella, aim to make 365 Copilot more cost-effective, potentially passing savings to customers, the sources said.

OpenAI remains a partner for advanced AI models under an agreement that allows Microsoft ( MSFT ) to customize them, a company spokesperson told Reuters.

Microsoft ( MSFT ) didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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