Microsoft is rewiring itself for the AI era, on offence and defence
Microsoft is remaking its own stack for the AI era, on both offence and defence. This week it moved on two fronts. It began pulling OpenAI’s models out of its most-used apps to cut costs. And it set a date to kill the text-message login, blaming a wave of AI-powered phishing.
The two announcements look nothing alike, yet they share a driver.
Swapping OpenAI out
Microsoft is replacing OpenAI’s image-generating models with its own technology in PowerPoint and Bing, Bloomberg reported. “It’s faster, it’s cheaper, it’s higher quality, it drives better retention,” Microsoft’s AI chief Mustafa Suleyman said.
The decisive word is cheaper. Suleyman said the company’s own MAI models run about 85% cheaper than OpenAI’s in PowerPoint.
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