Reports suggest that Microsoft is building AI models to rival its longtime partner OpenAI. Under AI Chief Mustafa Suleyman, the company has developed the Phi-4 multimodal and Phi-4-mini models, aiming to reduce reliance on OpenAI.

Microsoft Corp. has created in-house artificial intelligence models it believes can go toe-to-toe with industry leaders including partner OpenAI, according to a person familiar with the situation.

Microsoft is developing in-house artificial intelligence reasoning models to compete with OpenAI and may sell them to developers, The Information reported on Friday, citing a person involved in this initiative.

Microsoft, one of OpenAI’s biggest backers, is developing its own AI reasoning models — a move that could position the company as a direct competitor to its partner, OpenAI. The tech giant is working on a series of advanced AI reasoning models,

According to a person engaged in the program, The Information revealed on Friday that Microsoft is creating its own artificial

This is a major move, considering Microsoft has already invested around $14 billion into OpenAI and uses OpenAI’s technology in many of its products, including the Copilot AI assistant in Microsoft 365 apps like Word and Excel.