Microsoft launches its own AI models to take over OpenAI and Anthropic’i

Microsoft unveiled a family of seven on-premises AI models at its annual Build developer conference in San Francisco’; This is the clearest sign that the tech giant is taking action to reduce its dependence on AI companies, with billions of dollars pouring in.

After tuning its models for consulting firm McKinsey, Microsoft AI general manager Mustafa Suleiman said the company outperformed OpenAI’'s GPT-5.5’ in terms of quality and predicted ten times better cost efficiency based on public pricing data scaled to model sizes.

At the conference, CEO Satya Nadella, “, said, "We believe it's time for every company to move from consuming a border model to fully participating in the border."

The title version is MAI-Thinking-1’, Microsoft’'s first reasoning model; trained from the ground up with clean, commercially licensed data without being distilled from third-party systems.

It is a medium-sized model with 35 billion active parameters and a 256.000 coin context window, designed for complex multi-step instructions, long context reasoning, and code generation.

In addition, the company has launched MAI-Code-1-Flash’, an encoding model that converts text descriptions to source code for apps and websites, and is now available on GitHub Copilot and Visual Studio Code’.

By running its own models on Azure infrastructure, Microsoft can avoid the fees it already pays third-party providers and pass the savings on to developers.

According to Microsoft’, in blind reviews conducted by independent human rating partner Surge, MAI-Thinking-1 was preferred to Anthropic’in Claude Sonnet 4.6’, and the company said it matched Claude Opus 4.6 in its coding criteria.

Category: Quantum leaps

Also at Build’, Microsoft announced that the Majorana 2 quantum chip is 1,000 times more reliable than its predecessor; This is a milestone that the company says has come a striking distance to a commercially useful quantum computer.

Quantum qubits, the basic unit of quantum computing, are, as everyone knows, fragile: Even the slightest temperature changes or vibrations can lead them astray. The Majorana 2 chip handles this directly.

The qubits in the new chip survive an average of 20 seconds compared to the milliseconds in the original; This is a development that the company likens to upgrading a phone that needs to be charged daily to a phone that can last several years.

Zulfi Alam, corporate vice president of Microsoft Quantum’, said that in “2029’, we will have a quantum machine that can solve commercially viable, reasonable problems. While the chip currently has only 12 qubits, a handy machine requires millions of qubits.

Microsoft’'s approach focuses on topological qubits based on the properties of the semiparticle, first theorized by Italian physicist Ettore Majorana in the 1930s.

The path was not smooth – company had to withdraw a 2018 paper claiming evidence for the particle in the journal Nature – but the pressure continued and the second generation chip partially recovered from the first by replacing aluminum as a superconductor with lead.

The chip and the research supporting it have not yet undergone peer review, and some physicists have requested more information.

IPO race escalates

Microsoft’'s drive for model independence comes as companies allocate billions of dollars to prepare for blockbuster stock market launches.

Just days after raising $65 billion (59 billion euros) in the Series H funding round, which raised its valuation to $965 billion (877 billion euros), Anthropic, the artificial intelligence lab behind Claude’, secretly filed for an initial public offering on June 1, ’. OpenAI is also preparing its own secret file.

Microsoft has committed $13 billion (€11.8 billion) to OpenAI’, and Anthropic’e has invested up to $5 billion (€4.5 billion) while making models from both companies available through Azure.

Tesla: Why is ‘ the biggest loser of the Great Seven ’ group this year?

Telsa’'s stock fell 17 percent this year, dropping 33 percent from its all-time high in December last year, making it the most loser among U.S. tech giants or so-called Magnificent Seven stocks.

The decline in share price is attributed to several factors, including the large-scale decline in U.S. tech stocks, Elon Musk’'s leadership in the acquisition of OpenAI’, and recently BYD’'s announcement to partner with DeepSeek. Meanwhile, optimism about Trump’'s support for Tesla’'s self-driving goals has also waned.

The biggest threat – BYD’'s growing markets

On Monday, China’'s largest electric car brand, BYD, announced that it will partner with DeepSeek to develop its autonomous technology. This news disturbed Tesla’'s shareholders as well as those of other Chinese automakers such as Xpeng and Nio, causing a sharp wave of sales in stocks.

Tesla’ shares on Tuesday, despite a slight recovery the following day %6Losed more than ’. By contrast, BYD’'s shares reached a new peak that day.

Tesla’'s primary concern is its competitiveness against BYD’ in the fully autonomous driving (FSD) market. DeepSeek’in artificial intelligence (AI) model is seen as a very important development in the US-China technology race.

The Chinese startup's R1 model has been shown to be as good as, or even slightly better than, models developed by leading US tech firms, especially OpenAI’nin ChatGPT’si. DeepSeek, however, spent only $600 million to develop its AI model, compared to billions of dollars invested in hyperscalers in the U.S. ’.

Autonomous vehicles, especially Robotaxis, are at the heart of Tesla’'s commercial growth strategy. Currently, Tesla’'s FSD vehicles require human surveillance while driving, and the company is awaiting approval for public road use in China’.

BYD’'s adoption of the R1 AI model, known as the DeepSeek’in DiPilot system, has the potential to rival Tesla’'s FSD technology at a lower cost. In the fourth quarter of 2024’, Tesla missed market expectations in both deliveries and earnings, making it even more important to accelerate the autonomous driving project.

Elon MuskConcerns about ’ moving away from actual business

Also on Monday, reports emerged that Tesla CEO Elon Musk ’ led a group of investors to buy OpenAI’ for $97.4 billion (€93.68 billion). OpenAI, the developer of ChatGPT’, currently has the most advanced Large Language Model (LLM) for generative AI technology. However, despite CEO Sam Altman’'s efforts to make the company public, the organization remains a non-profit organization.

Musk also owns SpaceX, xAI, and the social media platform X’in (formerly Twitter), which he bought more than two years ago. He also serves as ’ in the White House“, a private government employee, and former President Donald Trump is helping ” launch a cost-cutting initiative.

These developments have raised concerns that the world's richest man may be distracted by his many initiatives.

Trump trade is weakening

Tesla became one of the biggest beneficiaries of Trump Trade’ following the election, with its shares almost doubling to the top on December 18, ’. But the stock has since erased most of this year's gains. The decline also resulted from a wider pullback in U.S. tech stocks; probably driven by profit buying and the DeepSeek announcement.

While the U.S. tech sector has been the biggest loser of the S&P 500’, Chinese tech companies have seen their shares skyrocket since the introduction of a cheap AI model by a Chinese startup.