Microsoft Diversifies AI Partnerships: Anthropic's Models to Join OpenAI in Office 365

Report: Microsoft taps rival Anthropic's AI for Office after it beats OpenAI at some tasks

Microsoft's Office 365 suite will soon incorporate AI models from Anthropic alongside existing OpenAI technology, The Information reported, ending years of exclusive reliance on OpenAI for generative AI features across Word, Excel, PowerPoint, and Outlook. The shift reportedly follows internal testing that revealed Anthropic's Claude Sonnet 4 model excels at specific Office tasks where OpenAI's models fall short, particularly in visual design and spreadsheet automation, according to sources familiar with the project cited by The Information, who stressed the move is not a negotiating tactic. Anthropic did not immediately respond to Ars Technica's request for comment. In an unusual arrangement showing the tangled alliances of the AI industry, Microsoft will reportedly purchase access to Anthropic's models through Amazon Web Services -- both a cloud computing rival and one of Anthropic's major investors. The integration is expected to be announced within weeks, with subscription pricing for Office's AI tools remaining unchanged, the report says. Microsoft maintains that its OpenAI relationship remains intact. "As we've said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership," a Microsoft spokesperson told Reuters following the report. The tech giant has poured over $13 billion into OpenAI to date and is currently negotiating terms for continued access to OpenAI's models amid ongoing negotiations about their partnership terms. Stretching back to 2019, Microsoft's tight partnership with OpenAI until recently gave the tech giant a head start in AI assistants based on language models, allowing for a rapid (though bumpy) deployment of OpenAI-technology-based features in Bing search and the rollout of Copilot assistants throughout its software ecosystem. It's worth noting, however, that a recent report from the UK government found no clear productivity boost from using Copilot AI in daily work tasks among study participants. Strategic hedging in the AI arms race For its part, OpenAI has also begun to distance itself from its primary investor. In June, it struck a deal to use Google's cloud computing infrastructure for AI despite the two companies' fierce competition in the space, marking a shift in OpenAI's strategy to diversify its computing resources beyond Microsoft Azure, which had been its exclusive cloud provider until January. OpenAI is also planning to launch a jobs platform that may compete with Microsoft's LinkedIn, and OpenAI plans to begin mass-producing its own AI chips with Broadcom in 2026 to lessen its dependence on outside providers. This type of diversification likely reflects evolving AI strategies for both OpenAI and Microsoft as demand for AI features outpaces any single provider's capacity. Beyond the Anthropic addition, Microsoft has been developing its own proprietary AI models and began offering DeepSeek's technology through its Azure cloud platform in January. Microsoft already offers multiple AI models, including Claude, through its GitHub Copilot development platform. For Anthropic, the Microsoft deal represents a significant paper win against its rival. Founded in 2021 by ex-OpenAI executives, including CEO Dario Amodei, Anthropic has positioned its Claude models as "more steerable" alternatives to ChatGPT. Amazon's $4 billion investment (which began in 2023) in Anthropic provided both capital and computing infrastructure through AWS -- resources Microsoft will now indirectly use to power its own products.

Microsoft to lessen reliance on OpenAI by buying AI from rival Anthropic | TechCrunch

Microsoft will pay to use Anthropic's AI in Office 365 apps, The Information reports, citing two sources. The move means that Anthropic's tech will help power new features in Word, Excel, Outlook, and PowerPoint alongside OpenAI's, marking the end of Microsoft's previous reliance solely on the ChatGPT-maker for its productivity suite. Microsoft's move to diversify its AI partnerships comes amid a growing rift with OpenAI, which has pursued its own infrastructure projects as well as a and a potential LinkedIn competitor. Microsoft's Anthropic deal also comes as the company negotiates a new deal with OpenAI to secure access to its AI models after a pending for-profit restructuring. But The Information says the move isn't a negotiating tactic. Leaders at Microsoft believe Anthropic's latest models - Claude Sonnet 4, specifically - perform better than OpenAI's in certain functions, like creating aesthetically pleasing PowerPoint presentations. Meanwhile, OpenAI is also seeking to step out from under Microsoft's influence. Last week, OpenAI launched a jobs platform to take on Microsoft's LinkedIn; and The Financial Times reported that OpenAI is set to begin mass production on its first AI chips in partnership with Broadcom in 2026. That means it will be able to potentially run training and inference on hardware it controls, rather than being dependent on Microsoft's Azure setup. TechCrunch has reached out to Microsoft and Anthropic for comment.

Microsoft taps Anthropic for AI in Word and Excel, signaling distance from OpenAI

Microsoft and OpenAI are distancing themselves from one another. Microsoft will slacken its dependence on OpenAI through a new partnership with Anthropic, The Information reported on Tuesday. The deal will enable Microsoft to embed Anthropic's AI systems into Microsoft 365 (formerly Office) platforms like Excel, PowerPoint, and Word. Also: AI's free web scraping days may be over, thanks to this new licensing protocol This marks a turning point for Microsoft, which has otherwise been largely (though not entirely) reliant on OpenAI's technology to power its consumer-facing AI efforts. The company has also played a major role in fueling OpenAI's ascent to the forefront of the AI race by investing more than $13 billion in the company since 2019. (Disclosure: Ziff Davis, ZDNET's parent company, filed an April 2025 lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.) Microsoft and OpenAI have been drifting apart lately amid mutually shifting business priorities. OpenAI, for its part, is reportedly planning to launch its own platform to compete with LinkedIn, which Microsoft owns. The company is also slated to start mass producing its own AI chips in partnership with Broadcom starting next year, which would make it less dependent on Microsoft's Azure for AI model training and inference (when a model is in use and actively making predictions based on user requests). As OpenAI works to restructure itself as a Public Benefit Corporation (PBC), Microsoft is reportedly in talks with the start-up to secure a greater stake than it currently owns and to ensure that it would continue to have access to OpenAI's systems if and when the ChatGPT maker achieves artificial general intelligence (AGI), a still vaguely defined concept. Also: Microsoft is an AGI skeptic, but is there tension with OpenAI? OpenAI is also reportedly now paying Google for access to its cloud computing software, further distancing itself from Microsoft and Azure. OpenAI and Microsoft did not immediately reply to ZDNET's requests for comment. Despite the mounting tension between the two companies, the new Microsoft-Anthropic partnership is more practical than personal, according to The Information. Also: AI's not 'reasoning' at all - how this team debunked the industry hype After comparing the performance of Anthropic models like Claude Sonnet 4 with the latest models from OpenAI, Microsoft has reportedly concluded that in some cases, Anthropic's are better suited for optimizing the Microsoft 365 user experience, the report added. News of the partnership arrives less than one week after Anthropic agreed to a $1.5 billion settlement in a class action lawsuit filed by three authors after a judge ruled that the company had illegally used copyrighted books to train its AI models. It's the largest settlement in the history of US copyright cases.

Microsoft to use some AI from Anthropic in shift from OpenAI, the Information reports

Sept 9 (Reuters) - Microsoft (MSFT.O), opens new tab will pay to use Anthropic's technology for some AI features in Office 365 apps, the Information reported on Tuesday, in a sign that the software firm is diversifying its artificial intelligence portfolio. The move will blend Anthropic and OpenAI technology in the apps, after years in which Microsoft primarily used OpenAI for the new features in Word, Excel, Outlook and PowerPoint, the report said. Microsoft is developing its own artificial intelligence models, while integrating DeepSeek's models into the Azure cloud as it seeks to maximize AI output to meet growing demand. It has been OpenAI's biggest financial backer, having invested more than $13 billion into the AI startup and getting a head-start in the AI race due to the company's models. "As we've said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership," a Microsoft spokesperson said. Developers making Office AI features found Anthropic's latest models performed better than OpenAI in automating tasks such as financial functions in Excel or generating Powerpoint presentations based on instructions, the report said, citing one of the two people involved in the effort. Microsoft will pay its cloud rival Amazon Web Services to access the Anthropic models, according to the report. AWS is one of Anthropic's largest shareholders. Anthropic, and OpenAI did not immediately respond to Reuters requests for comment, while AWS declined to comment. OpenAI's launch of GPT-5 is a step up in quality but Anthropic's Claude Sonnet 4 performs better in creating Powerpoint presentations that are more aesthetically pleasing, the report said. Microsoft plans to announce the move in the coming weeks, while the price of AI tools in Office will stay the same, the report said. Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur Our Standards: The Thomson Reuters Trust Principles., opens new tab

Microsoft reportedly plans to start using Anthropic models to power some of Office 365's Copilot features

Microsoft reportedly plans to begin using Anthropic's latest Claude models to power some of the Copilot features in its Office 365 apps. In a report published Tuesday, The Information said the tech giant would announce the change "in the coming weeks." Microsoft currently relies on OpenAI's tech to power the majority of AI features found inside of Word, Excel, Outlook and PowerPoint. As an outsider looking in, Microsoft's embrace of Anthropic's models would appear to signal a deepening split between the company and OpenAI. Microsoft is the AI lab's largest investor, and was integral to Sam Altman's rehiring as CEO following his brief ouster in 2023. However, in recent months reports of a growing impasse between the two in negotiations over OpenAI's plan to restructure its for-profit division as a public benefit corporation have bubbled up. For its part, Microsoft denied the move is motivated by animosity. "As we've said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership," a company spokesperson told The Information. Still, the decision likely comes as unwelcome news for OpenAI. The Information reports Microsoft is at least partly motivated by the fact it believes Claude 4 Sonnet "performs better in subtle but important ways" than GPT-5. For example, The Information's source said Anthropic's model tends to generate "more aesthetically pleasing" PowerPoint presentations. Notably, that's coming from an older model, and one that isn't even Anthropic's flagship offering. Anthropic did not immediately respond to Engadget's comment request. According to The Information, Microsoft does not plan to charge more for access to Anthropic models in Office 365, with Copilot pricing set to remain at $30 per user per month. That's notable because the company will pay Amazon to access Claude Sonnet 4 through AWS, Anthropic's primary cloud provider. As part of its investment in OpenAI, Microsoft can access the company's models at no additional cost.

Microsoft to buy AI from Anthropic in shift from OpenAI: Report - The Economic Times

The move will blend Anthropic and OpenAI technology in the apps, after years in which Microsoft primarily used OpenAI for the new features in Word, Excel, Outlook and PowerPoint, the report said.Microsoft will pay to use Anthropic's technology for some AI features in Office 365 apps, the Information reported on Tuesday, in a sign that the software firm is diversifying its artificial intelligence portfolio. The move will blend Anthropic and OpenAI technology in the apps, after years in which Microsoft primarily used OpenAI for the new features in Word, Excel, Outlook and PowerPoint, the report said. Microsoft is developing its own artificial intelligence models, while integrating DeepSeek's models into the Azure cloud as it seeks to maximize AI output to meet growing demand. It has been OpenAI's biggest financial backer, having invested more than $13 billion into the AI startup and getting a head-start in the AI race due to the company's models. "As we've said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership," a Microsoft spokesperson said. Developers making Office AI features found Anthropic's latest models performed better than OpenAI in automating tasks such as financial functions in Excel or generating Powerpoint presentations based on instructions, the report said, citing one of the two people involved in the effort. Microsoft will pay its cloud rival Amazon Web Services to access the Anthropic models, according to the report. AWS is one of Anthropic's largest shareholders. Anthropic, and OpenAI did not immediately respond to Reuters requests for comment, while AWS declined to comment. OpenAI's launch of GPT-5 is a step up in quality but Anthropic's Claude Sonnet 4 performs better in creating Powerpoint presentations that are more aesthetically pleasing, the report said. Microsoft plans to announce the move in the coming weeks, while the price of AI tools in Office will stay the same, the report said.

Microsoft Will Use Anthropic Models in Office 365 Copilot | PYMNTS.com

Under the plan, Microsoft will blend Anthropic's Claude models with OpenAI's technology inside Word, Excel, Outlook and PowerPoint. People involved told The Information that Anthropic's latest models performed better at advanced tasks, such as automating financial functions in Excel and generating PowerPoint presentations from user instructions. Microsoft aims to announce the change in the coming weeks, while keeping Copilot pricing at $30 per user per month. OpenAI models will continue to power other Copilot features. The shift follows months of sometimes tense talks over OpenAI's plan to restructure its for‑profit arm, though Microsoft's product leaders also found Anthropic's Claude Sonnet 4 outperformed OpenAI in "subtle but important" ways like producing more polished slides, the report said. OpenAI's newly launched GPT‑5 is a quality step up, according to The Information, but Microsoft will pay to access Anthropic models through Amazon Web Services because those models are hosted on AWS. Microsoft hasn't disclosed Office Copilot sales. The company has said more than 100 million customers use at least one Copilot product, and analysts estimate Office Copilot is pacing above $1 billion in annual revenue. "As we've said, OpenAI will continue to be our partner on frontier models and we remain committed to our long‑term partnership," a Microsoft spokesperson said. PYMNTS recently reported that Anthropic added native file creation to Claude, including spreadsheets and slide decks, as it pushes deeper into enterprise work: "This transforms Claude from an adviser into an active collaborator," the company said. PYMNTS has also noted Microsoft's AI infrastructure build-out, writing that the company "expanded its data center footprint to more than 400 sites in 70 regions." The rest of the story: Microsoft's move underscores a multimodel strategy that already includes using Anthropic for advanced agent features in GitHub Copilot and exploring alternative models for consumer Copilot, according to The Information. Anthropic's models are hosted on AWS, where Microsoft will pay to access them even as its long‑term OpenAI tie allows use of OpenAI models at no extra cost. Internally, executive Charles Lamanna is leading the Office integration effort.

Microsoft to add Anthropic AI models -- as rift with OpenAI grows:...

Microsoft is preparing to overhaul its Office 365 suite by adding artificial intelligence models from Anthropic -- the latest sign of a growing rift with OpenAI, according to a report. The software giant will pay to use Anthropic's Claude models for some Office 365 Copilot features, according to two people involved in the project cited by The Information. The decision follows internal testing that found Anthropic's models outperformed OpenAI's in generating PowerPoint decks and handling complex Excel functions. The change blends Anthropic and OpenAI technology inside Microsoft's most important business software, which serves more than 430 million paying users worldwide, according to The Information. OpenAI's flagship GPT-5 remains in use for several Copilot tasks, but Anthropic's Claude Sonnet 4 will take over advanced work like spreadsheet automation and presentation design. The move comes as Microsoft and OpenAI continue tense negotiations over OpenAI's restructuring into a for-profit company ahead of an eventual public listing, The Information reported. OpenAI's plan to restructure into a public benefit corporation has triggered tough negotiations with Microsoft, its largest backer, over how much equity Microsoft will hold and what level of privileged access it will retain to future AI models. The drawn-out talks, along with regulatory scrutiny in California, have delayed OpenAI's IPO until at least 2026, complicating liquidity plans for investors and employees. Investors including SoftBank are pressing for resolution, while OpenAI's nonprofit parent insists it will maintain control to ensure its mission of developing AI for the benefit of humanity remains central. OpenAI declined to comment when reached by The Information. Anthropic and Amazon Web Services, which hosts Anthropic's models, also did not respond to The Information's requests for comment. A Microsoft spokesperson told The Information: "OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership." Unlike its arrangement with OpenAI, where Microsoft's deep financial investment grants free use of the startup's models, Microsoft will pay AWS to access Anthropic's technology. Amazon is one of Anthropic's biggest backers, making the deal notable as Microsoft relies on a rival cloud to power its productivity suite, according to The Information. The Office 365 Copilot subscription will remain priced at $30 per user per month. Equity analysts estimate the add-on could already be generating more than $1 billion annually, assuming roughly 1% of Office 365 customers have signed up, The Information said. Some enterprises have been slow to adopt the service, citing bugs in AI-generated presentations and spreadsheets. Microsoft insiders told The Information that Anthropic's performance edge convinced executives to move forward. CEO Satya Nadella recently elevated Charles Lamanna to oversee business applications, including Copilot. Lamanna has been leading the integration of Anthropic models into Office in recent weeks, The Information reported. The shift isn't limited to Office. Earlier this year, Microsoft announced that its GitHub Copilot would also tap Anthropic models for advanced features, moving away from exclusive reliance on OpenAI. The company has additionally explored alternatives for its consumer-facing Copilot app, which competes with ChatGPT but has far fewer users, according to The Information. The rivalry between OpenAI and Anthropic is intensifying. Both startups are developing workplace productivity tools that compete directly with Microsoft's software. OpenAI agents can generate Excel sheets and PowerPoint files, while Anthropic unveiled a similar tool this week, The Information noted. Despite the competition, Microsoft is now depending on both companies to power its flagship products, a dual-track strategy that underscores both OpenAI's continued importance and Anthropic's rising influence in the enterprise AI market. The Post has sought comment from Microsoft, Anthropic and OpenAI.

Anthropic vs OpenAI: What Microsoft's AI diversification means for its future

For years, Microsoft's artificial intelligence strategy seemed almost synonymous with OpenAI. From its multibillion-dollar investment to the deep integration of GPT models into Office 365, Teams, and Azure, the Redmond giant positioned OpenAI as its flagship AI partner. But with Anthropic's Claude models now entering Microsoft products, the company is signaling a new phase: one where no single AI partner dominates. This diversification raises big questions: what does it mean for Microsoft's enterprise customers, for OpenAI's role in its ecosystem, and for the future of generative AI itself? Also read: Microsoft plans to reduce OpenAI reliance by integrating Anthropic AI into Office 365 apps At first glance, the decision to bring Anthropic's Claude Sonnet 4 into Office 365 looks like a simple case of adding more horsepower. In practice, it's about hedging risk. Relying too heavily on one vendor leaves Microsoft exposed, technologically, financially, and politically. By integrating Anthropic, the company reduces dependence on OpenAI while gaining access to alternative capabilities, like Claude's strengths in generating polished slides, handling nuanced financial data, and maintaining guardrails around sensitive content. Adding Anthropic isn't free. Microsoft gets OpenAI's models at no additional licensing cost due to its deep partnership, but Anthropic access runs through AWS, a rival cloud provider. That means Microsoft is effectively paying a competitor to bolster its own ecosystem. The move shows how important flexibility has become. Just as enterprises once embraced multi-cloud strategies to avoid vendor lock-in, Microsoft is signaling the same philosophy with AI. The trade-off: higher costs today in exchange for long-term bargaining power and resilience. OpenAI remains central to Microsoft's AI identity, powering Copilot across Word, Excel, Outlook, and more. But Anthropic's arrival hints at a subtle shift. In short, Anthropic's inclusion isn't a betrayal, it's a strategic counterweight. Also read: Anthropic explains how AI learns what it wasn't taught For everyday Office 365 users, this diversification might not be immediately visible. But under the hood, the changes could be significant: Over time, Microsoft could even introduce model-agnostic Copilot features, where tasks are routed to the AI best suited for the job. That would mark a real leap forward in enterprise AI usability. By weaving Anthropic into its portfolio, Microsoft is acknowledging a new reality: the age of the AI multiverse, where no single model reigns supreme. This strategy offers flexibility in adapting to strengths and weaknesses across providers and a choice for enterprises demanding transparency about which model powers their workflows. The downside? Rising costs and potential complexity in product consistency. But for Microsoft, the bet is clear: a diversified AI stack today secures its relevance in an unpredictable future.Microsoft's embrace of Anthropic doesn't replace OpenAI - it reframes it. In the battle of Anthropic vs OpenAI, the real winner might be Microsoft itself, if it can balance the strengths of both and keep enterprise trust intact.

Microsoft plans to reduce OpenAI reliance by integrating Anthropic AI into Office 365 apps

The decision highlights a growing distance between Microsoft and OpenAI. Microsoft is reportedly expanding its artificial intelligence (AI) partnerships by bringing Anthropic's technology into its popular Office 365 apps. According to The Information, the company will pay to use Anthropic's AI models in Word, Excel, Outlook and PowerPoint. This marks a shift away from relying only on OpenAI, the creator of ChatGPT, for productivity suites. The decision highlights a growing distance between Microsoft and OpenAI. Recently, OpenAI has been pushing its own projects, including new infrastructure and even a potential competitor to LinkedIn. Leaders at Microsoft reportedly believe that Anthropic's latest model, Claude Sonnet 4, performs better than OpenAI's technology in specific areas, like creating visually appealing PowerPoint slides. Also read: Apple iOS 26 update to release next week: Date, supported devices, features and more While OpenAI's models will continue to play a major role, Anthropic's tools will now be added alongside them to give users more powerful options. This is not the first time Microsoft has opened the door to other AI providers. GitHub Copilot already gives developers access to models from Anthropic and xAI in addition to OpenAI. Microsoft is also investing in its own in-house AI systems. Recently, it introduced two models called MAI-Voice-1 and MAI-1-preview. Also read: Apple iPhone 17 Pro Max, iPhone 17 Pro and iPhone 17 launched in India: Check price, specs here Even with these changes, Microsoft insists that its partnership with OpenAI remains strong. "As we've said, OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership," Microsoft spokesperson Michael Collins told TechCrunch.