Microsoft Tests New AI Model, Challenging OpenAI’s Market Lead

Microsoft Tests New AI Model

Microsoft has announced the public testing of its first large-scale, in-house artificial intelligence model, marking a significant step in the company’s long-term strategy to reduce dependence on its close AI partner, OpenAI.

The new system, called MAI-1-preview, is being tested on LMArena, a public evaluation platform where different AI models are ranked based on performance. While Microsoft continues to support and integrate OpenAI’s technology across its products, this move signals that the company wants to strengthen its own AI research and product independence.

Why Microsoft Is Building Its Own Models

For years, Microsoft has leaned heavily on OpenAI’s advanced models to power AI features in Bing, Windows 11, and its Copilot assistant. It has invested over $13 billion in OpenAI, providing both funding and cloud infrastructure through its Azure platform.

But as the AI industry evolves, the partnership has shifted. OpenAI has begun working with other cloud providers, including Google, Oracle, and CoreWeave, to meet the rising demand for its ChatGPT service, which now reaches over 700 million users every week.

At the same time, Microsoft has formally listed OpenAI as a competitor in its annual regulatory report, alongside tech giants like Google, Amazon, Apple, and Meta. This means that while the partnership remains important, both companies are pursuing their own strategies that could eventually put them in direct competition.

Inside the MAI-1-Preview Model

The MAI-1-preview model represents Microsoft’s first foundation model trained end-to-end within its own AI research unit. According to the company, the model was refined using around 15,000 NVIDIA H100 GPUs, and the training was further supported by a cluster of NVIDIA GB200 chips. This scale of compute power places Microsoft’s effort in line with other top AI labs developing frontier models.

The model is currently focused on text-based tasks. Microsoft has stated that MAI-1-preview will soon be integrated into certain Copilot features for consumers, beginning with text use cases. The company’s goal is to collect real-world feedback and improve the system’s accuracy, reliability, and efficiency before rolling it out more broadly.

On the LMArena leaderboard, the model currently ranks 13th for text workloads, behind offerings from OpenAI, Google, Anthropic, DeepSeek, Mistral, and Elon Musk’s xAI. This ranking highlights the competitiveness of the global AI race and the challenges Microsoft faces in catching up with established leaders.

Expanding Microsoft’s AI Division

The development of MAI-1-preview is being led by Mustafa Suleyman, CEO of Microsoft AI. Suleyman is a well-known figure in the AI world: he co-founded DeepMind, which was later acquired by Google, and more recently launched the startup Inflection AI, before joining Microsoft in 2023. Along with him, Microsoft has recruited a large team of AI experts, including around two dozen researchers from Google’s DeepMind.

Under his leadership, Microsoft has been expanding its AI research group rapidly, signaling the company’s ambition to become not just a major user of AI, but also a leading creator of foundation models.

Microsoft’s Previous AI Work

Microsoft’s Previous AI Work

Before MAI-1-preview, Microsoft’s internal AI development was largely limited to small-scale, open-source language models known as the Phi series. These lightweight models were useful for experimentation and targeted applications, but they did not compete with the massive foundation models built by companies like OpenAI or Anthropic.

The release of MAI-1-preview changes that, as it represents Microsoft’s first large, general-purpose model designed to serve as a backbone for consumer applications at scale.

A Turning Point for Microsoft’s AI Future

Microsoft’s move into training its own large models is more than just a technical milestone—it reflects a strategic shift. By developing in-house foundation models, the company reduces its reliance on outside partners and ensures greater control over how AI is integrated into its core products.

At the same time, Microsoft is not abandoning OpenAI. The partnership remains strong, and Microsoft’s Azure cloud continues to serve as a primary platform for running OpenAI’s powerful GPT models. However, by investing in its own research, Microsoft is preparing for a future in which it can compete more directly in the AI market and respond more flexibly to consumer needs.

With Copilot now integrated into Windows, Office, and Bing, Microsoft has a direct channel to bring these innovations to billions of users. If MAI-1-preview and future in-house models prove successful, Microsoft could begin shifting more of its AI ecosystem to its own technologies, creating a stronger balance between partnership and independence.

At a Glance: Microsoft’s New AI Push

Feature Details
Model Name MAI-1-preview
Type First fully in-house foundation model
Training Hardware ~15,000 NVIDIA H100 GPUs + GB200 cluster
Focus Area Text-based workloads; consumer-facing Copilot features
Testing Platform Public evaluations on LMArena
Ranking 13th in text tasks (as of launch)
Leadership Mustafa Suleyman, former DeepMind co-founder and Inflection AI CEO
Strategic Goal Reduce dependence on OpenAI, expand Microsoft’s AI independence

The launch of MAI-1-preview highlights Microsoft’s big ambitions in AI. While OpenAI remains a close partner, Microsoft is now positioning itself as a company capable of building cutting-edge models independently.

This shift is especially important as AI competition intensifies, with rivals like Google, Anthropic, Meta, and Mistral releasing increasingly powerful models. By leveraging its global infrastructure, vast user base, and new in-house expertise, Microsoft is preparing to deliver AI experiences that are not only faster and more efficient, but also tailored specifically to its products and long-term vision.

In short, MAI-1-preview is not just another model—it marks the beginning of Microsoft’s transformation from a partner of AI pioneers to a pioneer in its own right.


Subscribe to Our Newsletter

Related Articles

Top Trending

How to Make Profits With Digital Drop-Servicing
How to Make Profits With Digital Drop-Servicing: A Guide to Earn Big in 2026
Witch Hunt
The Witch Hunt: Why Momoka’s Game Was the Ultimate Test of Trust [Not Intelligence]
Justice For Karube And Chota
Justice For Karube And Chota: Did They Have To Die For Arisu To Evolve?
15 Best AI Productivity Tools for Remote Teams in 2026
15 Best AI Productivity Tools for Remote Teams in 2026
best free SaaS tools
Work, Wealth, And Wellness: 50 Best Free SAAS Tools to Optimize Your Life in 2026

Fintech & Finance

high yield savings accounts in January 2026
Top 5 High-Yield Savings Accounts (HYSA) for January 2026
What Is Teen Banking
What Is Teen Banking: The Race To Capture The Gen Alpha Market [The Next Big Thing]
How to Conduct a SaaS Audit Cutting Bloat in Q1 2026
How To Conduct A SaaS Audit: Cutting Bloat In Q1 2026
The Evolution of DAOs Are They Replacing Corporations
The Evolution Of DAOs: Are They Replacing Corporations?
How Regular Credit Score Tracking with Bajaj Markets Helps Prevent Loan Rejection
How Regular Credit Score Tracking with Bajaj Markets Helps Prevent Loan Rejection

Sustainability & Living

What Is The Sharing Economy
What Is The Sharing Economy: Borrowing Tools Instead Of Buying [Save Big]
Net-Zero Buildings
Net-Zero Buildings: How To Achieve Zero Emissions [The Ultimate Pathway to a Greener Future]
Fusion Energy
Fusion Energy: Updates on the Holy Grail of Power [Revisiting The Perspective]
Tiny homes
Tiny Homes: A Solution to Homelessness or Poverty with Better Branding?
Smart Windows The Tech Saving Energy in 2026 Skyscrapers
Smart Windows: The Tech Saving Energy in 2026 Skyscrapers

GAMING

Is Monster Hunter Wilds Open World
Is Monster Hunter Wilds An Open World Game? The Map & Regions Explained
Monster Hunter Wilds Story Length
How Many Chapters Are In Monster Hunter Wilds? Story Length Guide
steam deck alternatives in 2026
Top 5 Handheld Consoles to Buy in 2026 (That Aren't the Steam Deck)
Game Preservation in the Digital Age What Happens When Servers Die
Game Preservation In The Digital Age: What Happens When Servers Die?
How Many Chapters in Monster Hunter Wilds
How Many Chapters in Monster Hunter Wilds: Breakdown of All 6 Story Chapters

Business & Marketing

How to Make Profits With Digital Drop-Servicing
How to Make Profits With Digital Drop-Servicing: A Guide to Earn Big in 2026
15 Best AI Productivity Tools for Remote Teams in 2026
15 Best AI Productivity Tools for Remote Teams in 2026
Side Hustles to Avoid
5 Popular Side Hustles That Are A Complete Waste of Time in 2026
Digital Drop-Servicing is the King of 2026
Forget Dropshipping: Why "Digital Drop-Servicing" Is The King Of 2026
How To Sell Notion Templates
Write Once, Sell Forever: How To Sell Notion Templates In 2026 [Profit Blueprint]

Technology & AI

15 Best AI Productivity Tools for Remote Teams in 2026
15 Best AI Productivity Tools for Remote Teams in 2026
best free SaaS tools
Work, Wealth, And Wellness: 50 Best Free SAAS Tools to Optimize Your Life in 2026
Why Local SaaS Hosting Matters More Than Ever
Data Sovereignty: Why Local SaaS Hosting Matters More Than Ever
Prompt Engineering Is Dead Here Are the 4 Tech Skills Actually Paying
Prompt Engineering Is Dead: Here Are the 4 Tech Skills Actually Paying in 2026
high income skills
Stop Driving Uber: 5 High-Paying Digital Skills You Can Learn in a Weekend

Fitness & Wellness

Mental Health First Aid for Managers
Mental Health First Aid: A Mandatory Skill for 2026 Managers
The Quiet Wellness Movement Reclaiming Mental Focus in the Hyper-Digital Era
The “Quiet Wellness” Movement: Reclaiming Mental Focus in the Hyper-Digital Era
Cognitive Optimization
Brain Health is the New Weight Loss: The Rise of Cognitive Optimization
The Analogue January Trend Why Gen Z is Ditching Screens for 30 Days
The "Analogue January" Trend: Why Gen Z is Ditching Screens for 30 Days
Gut Health Revolution The Smart Probiotic Tech Winning CES
Gut Health Revolution: The "Smart Probiotic" Tech Winning CES