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

Meta vs. The World- The Smart Glasses War Heats Up at CES
Meta vs The World: The Smart Glasses War Heats Up at CES
The Private Credit Bubble Deutsche Bank Poll Warns of 2026 Market Risks
The "Private Credit" Bubble: Deutsche Bank Poll Warns of 2026 Market Risks
Travel Sustainably Without Spending Extra featured image
How Can You Travel Sustainably Without Spending Extra? Save On Your Next Trip!
A professional 16:9 featured image for an article on UK tax loopholes, displaying a clean workspace with a calculator, tax documents, and sterling pound symbols, styled with a modern and professional aesthetic. Common and Legal Tax Loopholes in UK
12 Common and Legal Tax Loopholes in UK 2026: The Do's and Don'ts
Goku AI Text-to-Video
Goku AI: The New Text-to-Video Competitor Challenging Sora

LIFESTYLE

Travel Sustainably Without Spending Extra featured image
How Can You Travel Sustainably Without Spending Extra? Save On Your Next Trip!
Benefits of Living in an Eco-Friendly Community featured image
Go Green Together: 12 Benefits of Living in an Eco-Friendly Community!
Happy new year 2026 global celebration
Happy New Year 2026: Celebrate Around the World With Global Traditions
dubai beach day itinerary
From Sunrise Yoga to Sunset Cocktails: The Perfect Beach Day Itinerary – Your Step-by-Step Guide to a Day by the Water
Ford F-150 Vs Ram 1500 Vs Chevy Silverado
The "Big 3" Battle: 10 Key Differences Between the Ford F-150, Ram 1500, and Chevy Silverado

Entertainment

Samsung’s 130-Inch Micro RGB TV The Wall Comes Home
Samsung’s 130-Inch Micro RGB TV: The "Wall" Comes Home
MrBeast Copyright Gambit
Beyond The Paywall: The MrBeast Copyright Gambit And The New Rules Of Co-Streaming Ownership
Stranger Things Finale Crashes Netflix
Stranger Things Finale Draws 137M Views, Crashes Netflix
Demon Slayer Infinity Castle Part 2 release date
Demon Slayer Infinity Castle Part 2 Release Date: Crunchyroll Denies Sequel Timing Rumors
BTS New Album 20 March 2026
BTS to Release New Album March 20, 2026

GAMING

Styx Blades of Greed
The Goblin Goes Open World: How Styx: Blades of Greed is Reinventing the AA Stealth Genre.
Resident Evil Requiem Switch 2
Resident Evil Requiem: First Look at "Open City" Gameplay on Switch 2
High-performance gaming setup with clear monitor display and low-latency peripherals. n Improve Your Gaming Performance Instantly
Improve Your Gaming Performance Instantly: 10 Fast Fixes That Actually Work
Learning Games for Toddlers
Learning Games For Toddlers: Top 10 Ad-Free Educational Games For 2026
Gamification In Education
Screen Time That Counts: Why Gamification Is the Future of Learning

BUSINESS

IMF 2026 Outlook Stable But Fragile
Global Economic Outlook: IMF Predicts 3.1% Growth but "Downside Risks" Remain
India Rice Exports
India’s Rice Dominance: How Strategic Export Shifts are Reshaping South Asian Trade in 2026
Mistakes to Avoid When Seeking Small Business Funding featured image
15 Mistakes to Avoid As New Entrepreneurs When Seeking Small Business Funding
Global stock markets break record highs featured image
Global Stock Markets Surge to Record Highs Across Continents: What’s Powering the Rally—and What Could Break It
Embodied Intelligence
Beyond Screen-Bound AI: How Embodied Intelligence is Reshaping Industrial Logistics in 2026

TECHNOLOGY

Meta vs. The World- The Smart Glasses War Heats Up at CES
Meta vs The World: The Smart Glasses War Heats Up at CES
Goku AI Text-to-Video
Goku AI: The New Text-to-Video Competitor Challenging Sora
AI Market Correction 2026
The "AI Bubble" vs. Real Utility: A 2026 Market Correction?
NVIDIA Cosmos
NVIDIA’s "Cosmos" AI Model & The Vera Rubin Superchip
Styx Blades of Greed
The Goblin Goes Open World: How Styx: Blades of Greed is Reinventing the AA Stealth Genre.

HEALTH

Bio Wearables For Stress
Post-Holiday Wellness: The Rise of "Bio-Wearables" for Stress
ChatGPT Health Medical Records
Beyond the Chatbot: Why OpenAI’s Entry into Medical Records is the Ultimate Test of Public Trust in the AI Era
A health worker registers an elderly patient using a laptop at a rural health clinic in Africa
Digital Health Sovereignty: The 2026 Push for National Digital Health Records in Rural Economies
Digital Detox for Kids
Digital Detox for Kids: Balancing Online Play With Outdoor Fun [2026 Guide]
Worlds Heaviest Man Dies
Former World's Heaviest Man Dies at 41: 1,322-Pound Weight Led to Fatal Kidney Infection