Microsoft Ditches OpenAI Image Models for In-House AI Technology Across PowerPoint and Bing

Jul 24, 2026
Bloomberg.com
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Summary

Microsoft is ditching OpenAI's image-generating models in favor of its own proprietary AI technology across PowerPoint and Bing, with model chief Mustafa Suleyman claiming the switch delivers faster, cheaper, higher-quality results and better user retention.

Key Points

  • Microsoft is replacing OpenAI's image-generating models with its own proprietary technology in major products including PowerPoint and Bing.
  • Microsoft's model chief Mustafa Suleyman says the new in-house technology is faster, cheaper, higher quality, and drives better user retention.
  • The move signals a significant shift in Microsoft's AI strategy, reducing its reliance on OpenAI despite the two companies' close partnership.

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