Microsoft is expanding its AI partnerships by incorporating Anthropic’s technology into its Office 365 applications, according to a report by The Information. This move signifies a shift away from the company’s exclusive reliance on OpenAI for AI functionalities within its productivity suite, encompassing applications like Word, Excel, Outlook, and PowerPoint.
The decision to diversify AI providers comes amidst increasing tension between Microsoft and OpenAI, fueled by OpenAI’s pursuit of independent infrastructure projects and its venture into a potential LinkedIn competitor. Furthermore, Microsoft is currently engaged in negotiations with OpenAI to secure continued access to its AI models following a pending for-profit restructuring.
Sources suggest that Microsoft’s interest in Anthropic extends beyond mere negotiation tactics. Microsoft leaders reportedly believe that Anthropic’s Claude Sonnet 4 model surpasses OpenAI’s capabilities in specific areas, such as generating visually appealing PowerPoint presentations.
OpenAI is also actively seeking to reduce its dependence on Microsoft. Recent developments include the launch of a jobs platform by OpenAI, directly competing with Microsoft’s LinkedIn. Additionally, the Financial Times reported that OpenAI plans to commence mass production of its initial AI chips in collaboration with Broadcom by 2026. This initiative would enable OpenAI to manage training and inference processes on its own hardware, diminishing its reliance on Microsoft’s Azure infrastructure.
