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OpenAI Names GPT 5.6 as Preferred Model for Microsoft Copilot 365

▼ Summary

– Bloomberg reported that Microsoft was replacing some of OpenAI’s software with its own in-house MAI models in apps like Word and Excel to cut costs.
– OpenAI announced during the launch of GPT 5.6 that it will become the “preferred model” powering Microsoft’s 365 Copilot.
– GPT 5.6 will support Microsoft users across productivity apps including Word, Excel, PowerPoint, and Cowork.
– The “preferred model” status means OpenAI’s software will continue to power Microsoft’s apps, but the term’s exact meaning remains unclear.
– The new disclosure does not negate earlier reporting that Microsoft was increasingly relying on its own software to reduce costs.

Earlier this week, Bloomberg reported that Microsoft had begun swapping out some of OpenAI’s software for its own in-house models, known as MAI, in an effort to cut costs. Those models were increasingly being used to power apps like Word and Excel, according to the outlet. The report reignited a familiar question about the two companies, once seen as inseparable, which have recently sent mixed signals about the status of their relationship: Were they drifting apart?

On Thursday, OpenAI moved to quash any speculation of a split. During the launch of GPT 5.6, the company announced that the new model would become the “preferred model” powering Microsoft 365 Copilot. In a blog post published the same day, OpenAI stated that GPT 5.6 would support Microsoft users across its suite of productivity apps, including Word, Excel, PowerPoint, and Cowork.

“Our partnership with Microsoft has always been about bringing the benefits of advanced AI to more individuals and organizations, and we’re excited to continue building on that shared commitment,” OpenAI wrote.

What exactly being a “preferred model” means remains somewhat ambiguous, other than that OpenAI’s software will continue to underpin Microsoft’s applications. However, the earlier report never claimed that ChatGPT’s software would stop powering Microsoft’s apps entirely. It simply noted that Microsoft was leaning more heavily on its own models to reduce expenses. The new “preferred model” designation does not appear to contradict that earlier reporting.

(Source: TechCrunch)

Topics

microsoft-openai partnership 98% in-house ai models 92% cost reduction 88% gpt 5.6 launch 87% microsoft 365 copilot 85% productivity apps 83% corporate situationship 80% preferred model agreement 78% AI Integration 75% enterprise ai adoption 72%