With the escalating expenses of AI, businesses are seeking methods to reduce costs. The latest instance is Microsoft, which is said to have started implementing a cost-reduction approach by decreasing its reliance on software from OpenAI and Anthropic while instead utilizing its in-house models.

In fact, regarding two of its most frequently utilized applications — Excel and Word — Microsoft has initiated the use of its proprietary MAI models to handle a certain fraction of user requests, as reported by Bloomberg on Tuesday. Previously, the firm had promoted the fact that significant portions of Office 365 are supported by models from both OpenAI and Anthropic.

Although Microsoft continues to depend on those external models, it has also progressively aimed to establish its own AI agents. Last month, during its annual Build event, the company unveiled seven new MAI models, including an agentic coder and a text-to-image creator.

When contacted for feedback by TechCrunch, Microsoft stated that it had no additional information to provide.

Microsoft’s noticeable reductions are part of a larger trend. Following a brief surge of “tokenmaxxing” earlier this year, the past few months have been filled with reports of technology firms behaving significantly more frugally. Other major corporations — such as Amazon, Uber, Meta, and Accenture — have likewise been indicated to take steps to decrease spending.

The significant costs associated with supplying and purchasing AI services have become a contentious issue within the industry. The price shock has grown so severe in certain areas of Silicon Valley that some businesses are reportedly exploring Chinese models for more cost-effective agentic alternatives — despite concerns over potential security risks.