Microsoft (MSFT) is reportedly working on its own in-house generative artificial intelligence models, looking to jump ahead in the emerging AI market. The company’s stock has had a rough start to 2025, however, Microsoft continues to innovate, announcing several promising investments/developments this year. One of the biggest announcements thus far was the company’s reported beginning of developing its own AI models that could compete with those from OpenAI.
Indeed, Microsoft reportedly has three reasoning AI models in the pipeline under the name MAI. Currently, Microsoft uses OpenAI’s models in its Copilot software, a major piece of its latest Microsoft 365 offering. However, it reportedly has been testing models from xAI, Meta, and upstart DeepSeek as potential replacements for OpenAI in Copilot. Microsoft invested approximately $13B into ChatGPT-maker OpenAI in order to use its models. Now though, the tech giant seems to be planning to move away from the company.
New Microsoft Chip to Send MSFT Stock Soaring?
Further, Microsoft’s newest AI chip could help solidify MSFT as a top stock in the AI space. The Majorana 1 quantum chip could propel Microsoft (MSFT) stock to a $500 price in the near future if it debuts strongly. In a podcast with Dwarkesh Patel, Satya Nadella explained that companies can only stay ahead if they correctly identify tech trends and understand where value will be created within those trends. Microsoft clearly sees AI as the next advancement, one that could be as big as Google search.
Also Read: Elon Musk’s GSAi Chatbot Transforms Government Efficiency
“That’s one key lesson I’ve learned. It’s not just about getting the tech trend right; it’s about understanding where the value will be created. These business model shifts are often more challenging than even the tech changes themselves,” the Microsoft CEO said. Nadella doesn’t believe that AI will be monopolized by one big company like Nvidia. However, he wants Microsoft to be one of the biggest players in the field.
Per The Information, Microsoft believes reducing its dependency on OpenAI will allow it to diversify its technology from what OpenAI is making and reduce costs. The company is planning to release its MAI models later this year as a way to let developers use them in their own apps.