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Microsoft is replacing OpenAI image models in PowerPoint, Bing
Microsoft is replacing OpenAI's image-generating models with its own technology in popular products like PowerPoint and Bing. "It's faster, it's cheaper, it's higher quality, it drives better retention," Microsoft's model chief Mustafa Suleyman said in an interview. The world's largest software maker has been developing artificial intelligence models that can compete with those from OpenAI and Anthropic. In part, this is to drive down the costs of deploying AI across Microsoft's products. Suleyman said the company's Microsoft AI (MAI) models are about 85% cheaper to run in PowerPoint, for example. For now, the company gets free access to OpenAI models owing to its longstanding partnership. Still, Microsoft must provide the expensive computing infrastructure to run these models, meaning it can realize significant savings by using more efficient ones. Customers routinely generate and edit images in Microsoft apps, such as creating infographics in PowerPoint, Suleyman said. Asking the software to create an image is also one of the first AI prompts new users make, meaning it's important for the experience to be positive, he added. Companies such as T-Mobile US Inc. and easyJet PLC are now using Microsoft's newest voice-generating AI models in their call centers, the company announced. Bloomberg previously reported that Microsoft was beginning to replace OpenAI and Anthropic text models within widely used office apps. Microsoft said that MAI models in Excel are on-par with OpenAI's GPT-5.6 for common tasks while being more cost-efficient. MAI models are now being used in more than half of all Microsoft products and tested in all of them, Suleyman said. "It is a very strong showing, and we're going to continue to push extremely hard," he said.
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Microsoft replaces OpenAI image models with its own technology By Investing.com
Investing.com -- Microsoft Corp. (NASDAQ:MSFT) is swapping out OpenAI's image-generating models for its own technology across products including PowerPoint and Bing, the company's model chief Mustafa Suleyman said in an interview. The software maker has been building artificial intelligence models designed to compete with those from OpenAI and Anthropic PBC. One goal is to reduce the costs of deploying AI across Microsoft's product lineup. Suleyman told Bloomberg in an interview that the company's Microsoft AI models cost about 85% less to run in PowerPoint compared to OpenAI's technology. "It's faster, it's cheaper, it's higher quality, it drives better retention," he said. Microsoft currently receives free access to OpenAI models through its partnership with the company. The software maker must still provide the computing infrastructure needed to run these models, allowing it to achieve savings by using more efficient alternatives. Users frequently generate and edit images in Microsoft applications, such as creating infographics in PowerPoint, according to Suleyman. Image creation is also among the first AI prompts that new users make, making it important for the experience to be positive, he added. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Microsoft is swapping out OpenAI's image-generating models for its own Microsoft AI technology in PowerPoint and Bing. The shift delivers 85% cost savings in PowerPoint while offering faster performance and higher quality, according to AI model chief Mustafa Suleyman. The move signals Microsoft's push toward self-sufficiency in AI as its models now power more than half of all Microsoft products.
Microsoft is making a decisive shift away from external AI providers by replacing OpenAI image models with its own technology across widely used products including PowerPoint and Bing
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. The company's AI model chief Mustafa Suleyman confirmed the transition, emphasizing that Microsoft's own AI technology delivers superior results. "It's faster, it's cheaper, it's higher quality, it drives better retention," Suleyman explained in an interview2
.The world's largest software maker has been developing AI models designed to compete directly with those from OpenAI and Anthropic. This strategic pivot aims to reduce dependency on external AI providers while dramatically cutting operational expenses. Microsoft AI models cost approximately 85% less to run in PowerPoint compared to OpenAI's technology, representing substantial savings as the company scales AI across its product portfolio
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.While Microsoft currently receives free access to OpenAI models through its longstanding partnership, the company must still provide the expensive computing infrastructure to run these models
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. By deploying more efficient image-generating models, Microsoft can realize significant savings on AI infrastructure costs. This economic imperative becomes particularly important as customers routinely generate and edit images in Microsoft apps, such as creating infographics in PowerPoint.Suleyman noted that asking software to create an image is often one of the first AI prompts new users make, making it critical for the experience to be positive and performant
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. Faster performance and lower costs directly translate to improved user retention, a key metric for Microsoft's AI strategy.Related Stories
The image model replacement is part of a wider initiative to reduce dependency on external AI providers. Bloomberg previously reported that Microsoft was beginning to replace OpenAI and Anthropic text models within widely used office apps. Microsoft AI models in Excel now perform on-par with OpenAI's GPT-5.6 for common tasks while being more cost-efficient
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.Microsoft AI models are now deployed in more than half of all Microsoft products and are being tested across the entire portfolio, Suleyman revealed. "It is a very strong showing, and we're going to continue to push extremely hard," he stated
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. Companies including T-Mobile and easyJet are already using Microsoft's newest voice-generating AI models in their call centers, demonstrating the technology's expanding reach beyond consumer applications1
.This transition marks a significant evolution in Microsoft's AI strategy, moving from reliance on external partners toward building proprietary capabilities that offer competitive advantages in speed, cost, and quality. As Microsoft continues to integrate its own AI models across its product ecosystem, the company positions itself to control both the technology stack and the economics of AI deployment at scale.
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