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Microsoft Ditches OpenAI and Anthropic for In-House AI Models to Cut Costs While Slashing 4,800 Jobs

Microsoft Ditches OpenAI and Anthropic for In-House AI Models to Cut Costs While Slashing 4,800 Jobs

Jul 08, 2026
The Deep View

Microsoft is ditching OpenAI and Anthropic AI models in favor of cheaper, in-house MAI models across products like Excel and Outlook, while simultaneously cutting 4,800 jobs and doubling down on AI expansion — a bold cost-cutting gamble that risks alienating enterprises demanding top-tier AI performance.

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