Microsoft Diversifies AI Portfolio: Integrating Anthropic's Models into Office 365

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 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 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.