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OpenAI says GPT 5.6 is the ‘preferred model’ for Microsoft Copilot 365 amidbreakup chatter
OpenAI's GPT 5.6 has been designated as the 'preferred model' for Microsoft 365 Copilot, countering rumors of a split between the two companies. Despite Microsoft increasingly using its in-house models for cost-cutting, OpenAI emphasizes their continued partnership to enhance AI in productivity apps like Word and Excel.
Key points
- Bloomberg reported Microsoft is replacing some OpenAI software with in-house models to cut costs.
- OpenAI launched GPT 5.6 and stated it would be the 'preferred model' for Microsoft 365 Copilot.
- OpenAI's software will still power Microsoft's applications like Word, Excel, and PowerPoint.
- Microsoft's shift to in-house models does not mean an end to their partnership with OpenAI.
Why it matters
- The news highlights increasing cost-saving measures in tech, reflecting a trend where companies seek to develop self-sufficient models.
- This situation mirrors other companies in 2025 that are exploring hybrid AI solutions by balancing proprietary and outsourced technologies for better operational efficiency.
- The evolving partnership dynamics between tech firms foreshadow future collaborations or shifts in AI development strategies.
This announcement from OpenAI confirms its pivotal role in Microsoft's AI strategies while acknowledging shifting software dependencies, illustrating the evolving landscape of tech partnerships.