Microsoft will unveil new homegrown AI models next week
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Contribution by
Izabelė Pukėnaitė
Microsoft will unveil a suite of new homegrown AI models next week at its annual "Build" conference for developers in San Francisco, including a coding model to boost the usage of its GitHub Copilot tool, the Information reported on Thursday.
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Microsoft will unveil a suite of homegrown AI models at its Build conference next week, including a coding model designed to strengthen its GitHub Copilot tool which has lost ground to Anthropic's Claude Code.
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The new suite includes specialized models for tasks like transcription, reasoning, speech, and image processing, reducing Microsoft's reliance on AI from OpenAI, Anthropic, and Google.
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Microsoft is distancing itself from once-vital partner OpenAI after changing partnership terms in recent months, with plans to build a cutting-edge AI model by next year and eyeing AI startup acquisitions.
The company is also planning to roll out new models that specialize in tasks such as transcription, reasoning, speech, and images, the report said, citing a person with direct knowledge of the plans. Microsoft declined to comment on the report.
What’s known so far is that, following the report, Microsoft's shares have risen and were last up nearly 3%.
The company has been rushing to beef up its own AI products as it gears up for a future independent of its once-vital partner OpenAI. The two tech giants have changed their partnership terms in recent months to reduce reliance on each other.
Cybernews previously reported that Microsoft and OpenAI have been restructuring their once tight-knit partnership. In June 2025, OpenAI executives considered accusing Microsoft of anticompetitive behavior in their partnership. ChatGPT owners also wanted to modify clauses that gave Microsoft exclusive rights to host OpenAI models in its cloud.
Microsoft has primarily relied on AI models from OpenAI, Anthropic, and its big tech rival, Google, to power its GitHub Copilot tool for software developers.
While the tool initially saw encouraging uptake, products such as Anthropic's Claude Code have quickly risen to the top of AI-assisted coding.
In September 2025, the companies signed a new non-binding deal that allowed OpenAI to pursue a for-profit conversion and eventual IPO. At the same time, Microsoft began building its own AI models to reduce its reliance on OpenAI.
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Microsoft is now eyeing AI startup acquisitions, Reuters reported earlier this month, to diversify beyond its OpenAI partnership.
The potential deals could help Microsoft beef up AI talent and deliver on its stated goal of building a cutting-edge AI model by next year, three sources told Reuters.
Market sentiment toward Microsoft has soured this year as investors question the viability of its early AI lead amid its OpenAI partnership unraveling, while rivals Google and Amazon report strong progress in their own AI efforts.
Another upcoming AI model sensation will happen in a few weeks’ time, with Anthropic announcing it will roll out Mythos to the public.
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