Microsoft uses more of its own AI models in Word and Excel to cut costs

In short: Microsoft is reportedly trying to lower AI costs by using more of its own AI models inside Microsoft 365 apps like Word and Excel.

What's going on

AI features cost a lot to run, especially when millions of people use them every day. These systems need large computer servers, and companies often pay per use, like paying for electricity each time you turn on a device.

According to Bloomberg, Microsoft has started answering a share of user requests in Word and Excel with its own in-house “MAI” models. An AI model is the part that produces the text or answers (like the brain of the chatbot). In the past, Microsoft highlighted that many Microsoft 365 features were powered by models from OpenAI and Anthropic, which are outside companies.

Microsoft still uses those third-party models, but it has been building more of its own options. At its Build conference last month, Microsoft announced seven new MAI models, including one aimed at helping with coding and another that can generate images from text (you type what you want, it makes a picture).

Microsoft did not add more details when TechCrunch asked for comment.

What to watch

This looks like part of a wider cost-cutting trend across big tech companies. Reports say Amazon, Meta, Uber, and Accenture have also tried to reduce internal AI spending. For regular users, the big question is whether these behind-the-scenes swaps change quality, speed, privacy, or pricing for AI features in everyday tools like Word and Excel.

Source: TechCrunch AI