<p id="speakable-summary" class="wp-block-paragraph">As <a href="https://www.barrons.com/articles/ai-spending-alphabet-amazon-meta-b22f1044" target="_blank" rel="noreferrer noopener nofollow">AI costs continue to rise</a>, companies are looking for ways to cut back. The most recent example is Microsoft, which has reportedly begun to deploy a cost-savings strategy by relying less on software from OpenAI and Anthropic and instead deploying its own in-house models.</p>
<p class="wp-block-paragraph">Indeed, when it comes to two of its most widely used programs — Excel and Word — Microsoft has begun to use its homemade <a href="https://github.blog/changelog/2026-06-26-mai-code-1-flash-for-copilot-business-and-copilot-enterprise/" target="_blank" rel="noreferrer noopener nofollow">MAI models</a> to respond to a certain percentage of user prompts, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-07-07/microsoft-replaces-openai-anthropic-with-own-ai-in-some-apps" target="_blank" rel="noreferrer noopener nofollow">reported</a> Tuesday. In the past, the company had advertised the fact that large parts of Office 365 are <a href="https://www.microsoft.com/en-us/microsoft-365/blog/2025/09/29/vibe-working-introducing-agent-mode-and-office-agent-in-microsoft-365-copilot/" target="_blank" rel="noreferrer noopener nofollow">powered by models from both OpenAI and Anthropic</a>.</p>
<p class="wp-block-paragraph">While Microsoft still relies on those third-party models, it has also increasingly sought to stand up its own AI agents. Last month, at its annual Build conference, the company announced the <a href="https://microsoft.ai/news/building-a-hillclimbing-machine-launching-seven-new-mai-models/" target="_blank" rel="noreferrer noopener nofollow">launch of seven new MAI models</a>, including an agentic coder and a text-to-image generator.</p>
<p class="wp-block-paragraph">When reached for comment by TechCrunch, Microsoft said that it had nothing further to share.</p>
<p class="wp-block-paragraph">Microsoft’s apparent cutbacks are part of a broader trend. After a brief blitz of “tokenmaxxing” earlier this year, the last few months have seen a news cycle awash in stories about tech companies acting significantly more thrifty. Other large companies — like <a href="https://www.nytimes.com/2026/06/18/technology/ai-token-minimizing.html" target="_blank" rel="noreferrer noopener nofollow">Amazon</a>, <a href="https://techcrunch.com/?p=3128791&preview=true&_thumbnail_id=3100056">Uber</a>, <a href="https://www.theinformation.com/articles/tokenminimizing-meta-moves-curb-employee-ai-usage-ai-costs-reach-billions" target="_blank" rel="noreferrer noopener nofollow">Meta</a>, and <a href="https://techcrunch.com/2026/06/24/companies-are-scrambling-to-stop-employees-from-maxing-out-ai-budgets-with-small-tasks/">Accenture</a> — have also reportedly made moves to curb spending.</p>
<p class="wp-block-paragraph">The immense cost of providing and buying AI services has become a controversial part of the industry. The sticker shock has gotten so bad in some parts of Silicon Valley that some companies <a href="https://www.theatlantic.com/technology/2026/07/glm-5-2-china-cheap-ai-agents/687828/" target="_blank" rel="noreferrer noopener nofollow">are reportedly</a> looking to Chinese models for more affordable agentic solutions — despite some concerns over <a href="https://www.washingtonpost.com/national-security/2026/07/06/why-anthropic-alleges-chinese-firms-are-distilling-knowledge-claude/" target="_blank" rel="noreferrer noopener nofollow">potential security issues</a>.</p>
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