Microsoft Corporation (NASDAQ:MSFT) is reportedly planning to reduce its dependence on ChatGPT-maker OpenAI. What Happened: Microsoft has been working on integrating internal and third-party artificial intelligence models into its AI product,

Microsoft and OpenAI have had something of a symbiotic relationship, with the former giving billions of capital to a startup AI lab and in return gaining early access to cutting-edge models that are now baked into Microsoft’s suite of productivity software.

The cost of new AI models can add up quickly. A new “o3” model from OpenAI costs $20 per task. Why Microsoft is paying close attention to the price.

Microsoft is reportedly looking to reduce its reliance on OpenAI for the AI models powering its Microsoft 365 Copilot assistant.

The effort is said to focus on the tech giant’s Microsoft 365 Copilot product. It’s an artificial intelligence assistant that ships with the eponymous productivity suite. Microsoft is reportedly working to integrate custom and open-source artificial intelligence models into the assistant, which is currently powered by technology from OpenAI.

Most notably, there’s co-founder Elon Musk, who now runs rival startup xAI, and is in the midst of a heated legal battle with OpenAI CEO Sam Altman.

OpenAI's biggest moments in 2024 included lawsuits, Sam Altman's comeback, a historic funding round, and a legal fight with Elon Musk.

Microsoft is planning on adding internal and third-party artificial intelligence models to power its flagship AI product, Microsoft 365 Copilot. TakeAway Points: Microsoft has been working on adding internal and third-party artificial intelligence models to power its flagship AI product,

The tech company recently added Copilot to its consumer subscription service for software including Word, Excel and PowerPoint in Australia and several Southeast Asian countries. Along with the AI feature, it raised prices for everyone who uses the service, called Microsoft 365, in those countries.

Microsoft is a strong investment opportunity, poised to capitalize on the AI revolution with CEO Satya Nadella's leadership. Read why I rate MSFT a Strong Buy.

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