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Microsoft routes some Excel and Outlook prompts to internal models to cut inference costs

Rohan's Bytes Covered by 3 sources

Microsoft is replacing OpenAI and Anthropic models with internal models in Excel and Outlook to reduce inference costs for its Copilot features. The company's AI head has stated the goal is to reduce and eventually eliminate dependence on external model providers whose pricing it cannot control. This shift allows Microsoft to lower expenses while maintaining functionality in widely-used productivity applications.

Why it matters

Microsoft is routing some Excel and Outlook prompts to internal models to reduce reliance on OpenAI and Anthropic while maintaining GPT-5.6 as the preferred model for higher-quality tasks in Microsoft 365 Copilot.

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