Microsoft is diversifying the AI models used in its 365 Copilot by incorporating alternatives to those developed by OpenAI, according to sources familiar with the situation.

The company is integrating both its internal models, including the new Phi-4, and third-party open-weight AI models into its enterprise software.

This strategy aims to improve efficiency of 365 Copilot while potentially lowering costs for customers.

It also seeks to reduce reliance on OpenAI’s technology, addressing concerns over pricing and speed.

OpenAI did not comment on these developments.

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