The tech giant plans to introduce proprietary AI models to enhance GitHub Copilot and reduce reliance on OpenAI.
Microsoft will launch a new suite of in-house AI models next week at its Build developer conference, including a coding model aimed at improving GitHub Copilot. The move follows growing competition from rivals like Anthropic’s Claude Code, which has gained traction in AI-assisted software development.
The company has historically depended on models from OpenAI, Google, and Anthropic but is now accelerating its own AI development. Recent adjustments to its partnership with OpenAI signal a shift toward greater independence, with Microsoft also exploring AI startup acquisitions to bolster its capabilities.
Shares rose nearly 3% following the report, reflecting investor optimism about Microsoft’s AI strategy. The new models will also target transcription, reasoning, and image processing tasks.