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TechMicrosoft tells sales team to prioritize in-house AI models over OpenAI, Google, Anthropic
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Microsoft has reportedly instructed its sales team to prioritize its own in-house AI models over rival offerings from OpenAI, Google, and Anthropic as part of its fiscal 2027 strategy. Executive Vice President Jay Parikh emphasized selling the 'full end-to-end system.' Copilot chief Jacob Andreou compared Copilot unfavorably to Anthropic's Claude, noting it was slower and less accurate but had stronger Office app integrations. The shift follows Microsoft ending OpenAI's exclusivity in April and replacing OpenAI/Anthropic models in Word and Excel to reduce costs. CEO Satya Nadella warned that using third-party AI forces companies to 'pay for intelligence twice' and exposes business knowledge. Meta also signaled plans to undercut rivals with lower API pricing. Microsoft's stock has dropped 21.75% over the past 12 months, with a market cap of $2.94 trillion.
Source report
Author: Mohd Haider Source: Benzinga / Yahoo Finance
Microsoft Corp. has reportedly directed its sales team to prioritize the company's own artificial intelligence models over competing offerings from OpenAI, Alphabet's Google, and Anthropic, according to a Bloomberg report published Wednesday.
The directive was issued during a fiscal 2027 strategy session held on Tuesday.
Executive Vice President Jay Parikh told staff, "Everyone else is selling parts — we're selling the full end-to-end system," as reported by Bloomberg.
Copilot vs. Claude Comparison Raises Eyebrows
During the session, Copilot chief Jacob Andreou compared Microsoft's Copilot with Anthropic's Claude, noting that Copilot was slower, less accurate, and lacked strong security integrations across Microsoft's Office applications.
Microsoft declined to comment on this story.
Strategic Shift and Cost Reduction
The strategy session focused on positioning Microsoft's in-house AI models as more efficient and less expensive than rival offerings. Notably, OpenAI and Anthropic have long supplied the AI models used in many of Microsoft's own products.
This shift follows Microsoft's decision in April to end OpenAI's exclusivity through a new deal. It also comes after a recent report that Microsoft is replacing OpenAI and Anthropic models in Word and Excel as part of a broader effort to reduce costs.
Microsoft CEO Satya Nadella recently warned that companies "pay for intelligence twice" when relying on third-party AI, adding that using outside models can expose valuable business knowledge to external vendors.
Competitive Landscape
Meta has also signaled plans to undercut rivals. CEO Mark Zuckerberg suggested that its new Model API could be priced roughly 25% below OpenAI and Anthropic, according to JPMorgan analyst Doug Anmuth, who commented on the matter Monday.
Trading Metrics
| Metric | Value | |--------|-------| | Market Capitalization | $2.94 trillion | | 52-Week High | $555.45 | | 52-Week Low | $349.20 | | 12-Month Performance | -21.75% |
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Microsoft Tells Sales Team to Prioritize In-House AI Models Over Rivals OpenAI, Google, and Anthropic