Microsoft’s AI head is planning the future without Openai. Reports from the information show that Mustafa Suleyman, head of Microsoft’s AI division, is aiming for a bold purpose: reducing dependence on Openai.
“After the set-off, Microsoft’s AI Guru Mustafa Suleyman appears to be slowly making progress in helping businesses leave Openai,” the information reported.
Microsoft has poured over $13 billion into AI companies since 2019, but now they want to have more control over their own models and costs. In theory it’s simple enough. Build internal alternatives, cut costs and call shots. But reality is much more troubling, just as new reports arise from information. Or, as reporter Aaron Holmes said, “It’s easier than doing it.”
“Last fall, during a video call between Suleyman’s Openai and Microsoft’s senior leadership, who heads Microsoft’s in-house artificial intelligence unit, Openai staff explained how the latest model, the O1, worked.
The urgency behind this push was revealed last fall in a high-stakes video call, which had been harboring all the tensions of the corporate power struggle. Suleyman and other Microsoft executives pressed Openai to reveal important technical details about the latest model, the O1. This wasn’t just about curiosity. Since joining Microsoft in March 2024 after co-founding Refracted AI, Suleyman has led the company towards a future where AI ambitions do not involve a single partner.
In a strategic move that demonstrates ambitions in the AI space, Microsoft hired Suleyman a year ago, one of the brains behind Google Deepmind, to lead Microsoft AI, called the newly formed consumer AI unit.
Why rush?
Money, one. Openai’s models, including GPT-4, the backbone of Microsoft’s Copilot Assistant, are not cheap to run. Keeping it live on Azure’s cloud infrastructure will cost a lot of money, and Microsoft is keen to lower the bill with its own alternative.
Then there’s a strategy. Posts circulating on X today suggest that Microsoft is not just trying to save money. It wants to develop an AI inference model that can compete directly with Openai and potentially enter the market. Promoting to independence also won Steam after a meltdown near Openai in 2023 when CEO Sam Altman was temporarily expelled. The episode revealed that Microsoft is vulnerable to internal disruptions from its partners.
Challenge: Breaking freedom doesn’t happen overnight
Microsoft and Openai are deeply intertwined. Openai’s technology is built into Microsoft products, from Copilot to Bing’s AI-powered search capabilities to Microsoft 365’s productivity tools. A tweak to the partnership agreement this January allowed Openai to work with other cloud providers like Oracle, but Microsoft retains exclusive rights to Openai’s own product model until 2030. This is a long timeline to help you understand.
Suleyman’s team is testing alternatives from companies like Xai, Deepseek and Meta, according to information. They have already started swapping Openai models at Copilot, but progress has slowed down. The report mentions an unspecified “setback.” This can mean anything from technical obstacles to internal resistance.
This is not a new idea within Microsoft. In December 2024, Reuters reported that the company is beginning to speed up things and reduce costs by integrating internal models such as the PHI-4 into Microsoft 365 Copilot. The partnership with Openai is advantageous, and Microsoft has gained a share of revenue, but not without tension. Openai projected a $5 billion loss in 2024, flagged by the New York Times, but reinforced Microsoft’s desire to have its own AI playbook. Thuleman’s employment was a clear sign of that shift.
What happens next?
Online chatter today reflects a mixture of skepticism and conspiracy. Holmes tweeted that Thuleman’s team is “actively” replacing Copilot’s open model, with accounts like X’s @livesquawk and @chitraders framing the situation as a fight between the Giants. In this case, there are deep pockets on both sides. Some people question whether Microsoft will really break free if Openai technology is so embedded in its ecosystem.
If Microsoft pulls this off, the benefits are clear. It’s an opportunity to wager your own position in a competitive market, cheaper and faster AI services. But between contractual obligations, technical dependencies, and Openai’s continued innovation, Suleyman’s mission is a longer grind than a quick victory. His team is in motion. One model swap at a time. Can Microsoft completely separate herself from Openai? That’s a billion dollar question.
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