GadgetBond

  • Latest
  • How-to
  • Tech
    • AI
    • Amazon
    • Apple
    • CES
    • Computing
    • Creators
    • Google
    • Meta
    • Microsoft
    • Mobile
    • Samsung
    • Security
    • Xbox
  • Transportation
    • Audi
    • BMW
    • Cadillac
    • E-Bike
    • Ferrari
    • Ford
    • Honda Prelude
    • Lamborghini
    • McLaren W1
    • Mercedes
    • Porsche
    • Rivian
    • Tesla
  • Culture
    • Apple TV
    • Disney
    • Gaming
    • Hulu
    • Marvel
    • HBO Max
    • Netflix
    • Paramount
    • SHOWTIME
    • Star Wars
    • Streaming
Add GadgetBond as a preferred source to see more of our stories on Google.
Font ResizerAa
GadgetBondGadgetBond
  • Latest
  • Tech
  • AI
  • Deals
  • How-to
  • Apps
  • Mobile
  • Gaming
  • Streaming
  • Transportation
Search
  • Latest
  • Deals
  • How-to
  • Tech
    • Amazon
    • Apple
    • CES
    • Computing
    • Creators
    • Google
    • Meta
    • Microsoft
    • Mobile
    • Samsung
    • Security
    • Xbox
  • AI
    • Anthropic
    • ChatGPT
    • ChatGPT Atlas
    • Gemini AI (formerly Bard)
    • Google DeepMind
    • Grok AI
    • Microsoft Copilot
    • OpenAI
    • Perplexity
    • xAI
  • Transportation
    • Audi
    • BMW
    • Cadillac
    • E-Bike
    • Ferrari
    • Ford
    • Honda Prelude
    • Lamborghini
    • McLaren W1
    • Mercedes
    • Porsche
    • Rivian
    • Tesla
  • Culture
    • Apple TV
    • Disney
    • Gaming
    • Hulu
    • Marvel
    • HBO Max
    • Netflix
    • Paramount
    • SHOWTIME
    • Star Wars
    • Streaming
Follow US
AIMicrosoftOpenAITech

Microsoft’s 365 Copilot is not just about OpenAI anymore

Microsoft's AI development takes a new turn as 365 Copilot embraces more than just OpenAI, aiming for innovation and cost savings.

By
Shubham Sawarkar
Shubham Sawarkar's avatar
ByShubham Sawarkar
Editor-in-Chief
I’m a tech enthusiast who loves exploring gadgets, trends, and innovations. With certifications in CISCO Routing & Switching and Windows Server Administration, I bring a sharp...
Follow:
- Editor-in-Chief
Dec 26, 2024, 6:42 AM EST
Share
Microsoft 365 Copilot
Image: Microsoft
SHARE

Microsoft is reportedly seeking to diversify the AI models used in its Microsoft 365 Copilot, moving away from an exclusive reliance on OpenAI‘s technology. According to a report by Reuters, the tech giant is looking into both in-house and third-party AI models to improve efficiency and reduce costs associated with running its AI-powered assistant.

The shift comes as Microsoft grapples with the high costs and speed limitations of relying solely on OpenAI’s models. Sources close to the matter told Reuters that Microsoft is not only developing its own smaller language models (SLMs), like the recently released open-source Phi-4, but is also customizing other open-weight models. This strategy aims to make Microsoft 365 Copilot more cost-effective and potentially lower the price for users.

Historically, Microsoft has had a deep partnership with OpenAI, having invested billions to secure an exclusive license to use OpenAI’s GPT-4 model within Microsoft 365 Copilot. This AI assistant, which comes at an additional $30 per user per month on top of a Microsoft 365 subscription, integrates into various Microsoft applications, enhancing user productivity by automating tasks and providing real-time assistance.

However, the landscape is changing. A statement from a Microsoft spokesperson to Reuters confirmed, “We incorporate various models from OpenAI and Microsoft depending on the product and experience,” suggesting a broadening of its AI toolkit. Despite this, they emphasized that “OpenAI remains Microsoft’s main partner to work on the most advanced AI models coming to the market.”

This strategic pivot was hinted at with the establishment of “Microsoft AI,” a new division led by Mustafa Suleyman, co-founder of DeepMind and Inflection. This division is focused on developing proprietary AI technologies, which have already been incorporated into the consumer version of Microsoft Copilot launched in October. This version uses a blend of Microsoft’s own AI models alongside those from OpenAI, indicating a significant shift in Microsoft’s AI deployment strategy.

Furthermore, the involvement of Microsoft’s top brass, including CEO Satya Nadella, in overseeing these changes underscores the company’s commitment to this new direction. The integration of alternative AI models isn’t limited to Microsoft 365 Copilot; GitHub Copilot, another Microsoft AI tool, has also broadened its AI model support to include offerings from Anthropic and Google, as announced in October. This reflects Microsoft’s acknowledgment of the need for flexibility and choice in AI model usage, allowing developers to select models that best suit their needs.

The implications of these developments are multifaceted. For Microsoft, reducing dependency on external AI technology could lead to more control over its AI-driven products, potentially enhancing performance and reducing costs. For users, this could translate into more tailored AI experiences and possibly more competitive pricing. However, this shift also prompts questions about the future of Microsoft’s relationship with OpenAI and how this diversification might affect the capabilities and quality of AI assistance provided.


Discover more from GadgetBond

Subscribe to get the latest posts sent to your email.

Most Popular

Your public Instagram can now power AI images – here’s how to stop it

Americans are turning to the secondhand market for better tech deals

Claude Code gets an in-app browser

Grok 4.5 lands in Perplexity Computer for Pro, Max, and Enterprise users

Meta wants to turn the future into a feed. Naturally, Zuckerberg is in charge.

Also Read
Waze app displaying the new motorcycle mode with a Gemini AI-powered route recommendation, highlighting the fastest 19-minute route, alternate routes, and motorcycle-specific navigation options.

Waze finally adds a dedicated motorcycle mode

Perplexity Mac app displaying the new multiple account switcher, allowing users to quickly switch between accounts, add a new account, manage credits, and access settings from a single dropdown menu.

Perplexity adds multi-account support to the Mac app

The classic Apple logo, shown in light silvery-blue, set against a black background. The logo has a clean, minimalist design featuring the iconic bitten apple silhouette with a soft, matte finish.

OpenAI faces Apple suit linked to unreleased device plans

Blue building facade featuring a large white Meta infinity logo centered on a dark blue panel, with blurred pedestrians walking past on the right side and reflections of cars and street details on the left.

Meta’s hook: the feed that never stops

Top-down nighttime view of SpaceX Starship standing on the launch pad, surrounded by illuminated ground equipment, thick clouds of venting vapor, and dramatic lighting before launch.

SpaceX and ispace book 500kg of cargo for a Moon landing by 2030

Meta patent illustration showing a person performing squats in front of a smart mirror while wearing AR glasses, with an AI workout assistant providing real-time coaching, posture guidance, and encouragement through an on-screen conversational interface.

Meta’s patent suggests a wearable that reads your mood all day

The image shows a collection of 3D icons representing various social media platforms arranged in a grid pattern on a white background with black dots. The icons include Pinterest, Facebook, TikTok, Instagram, WhatsApp, YouTube, LinkedIn, Spotify, Snapchat, and Twitter. Some icons have notification badges, with WhatsApp showing a badge with the number 3 and Snapchat showing a badge with the number 6. The icons are colorful and have a raised, three-dimensional appearance, making them stand out against the background.

Ofcom’s new proposal: tech firms must stamp out scam ads or pay

Screenshot of Perplexity Computer showing the AI model selection menu with Claude Opus 4.8 selected and Fast mode enabled, highlighting the option for faster responses at the cost of higher credit usage.

Claude Opus 4.8 now runs faster in Perplexity

Company Info
  • Homepage
  • Support my work
  • Latest stories
  • Company updates
  • GDB Recommends
  • Daily newsletters
  • About us
  • Contact us
  • Write for us
  • Editorial guidelines
Legal
  • Privacy Policy
  • Cookies Policy
  • Terms & Conditions
  • DMCA
  • Disclaimer
  • Accessibility Policy
  • Security Policy
  • Do Not Sell or Share My Personal Information
Socials
Follow US

Disclosure: We love the products we feature and hope you’ll love them too. If you purchase through a link on our site, we may receive compensation at no additional cost to you. Read our ethics statement. Please note that pricing and availability are subject to change.

Copyright © 2026 GadgetBond. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | Do Not Sell/Share My Personal Information.