Microsoft Swaps OpenAI and Anthropic for MAI, Trims 2.1% Workforce
MSFT•Microsoft has begun replacing OpenAI and Anthropic models in Excel and Outlook with its own MAI systems, handling tens of thousands of weekly prompts. The shift aims to curb its rising AI costs and follows a broader push that includes cutting 2.1% of its workforce, or 4,800 roles.
1. AI Model Replacement
Microsoft has started routing tens of thousands of weekly prompts in Excel and Outlook through its internally built MAI systems, replacing third-party models from OpenAI and Anthropic. This internal shift marks the first phase of rolling out MAI across its productivity applications.
2. Cost Savings Strategy
The move is designed to limit escalating AI token expenses as the company’s discounted rates with OpenAI approach expiration. By increasing MAI’s share of AI activity, Microsoft expects to avoid full market pricing from leading AI labs.
3. Workforce Reductions and Cost Push
As part of a broader efficiency drive, Microsoft is cutting 2.1% of its global workforce—about 4,800 jobs—with the Xbox division shedding roughly 3,200 roles. These measures coincide with record AI investments tempered by targeted spending cuts.
