product updateOpenAI

OpenAI designates GPT-5.6 as 'preferred model' for Microsoft 365 Copilot following cost-cutting reports

TL;DR

OpenAI has designated its newly launched GPT-5.6 as the 'preferred model' for Microsoft 365 Copilot, powering Word, Excel, PowerPoint, and Cowork. The announcement comes days after Bloomberg reported Microsoft is increasingly deploying its in-house MAI models to reduce reliance on OpenAI and cut costs.

2 min read
0

OpenAI designates GPT-5.6 as 'preferred model' for Microsoft 365 Copilot following cost-cutting reports

OpenAI announced Thursday that GPT-5.6 will serve as the "preferred model" for Microsoft 365 Copilot, according to a company blog post published alongside the model's launch.

The designation means GPT-5.6 will power Microsoft's productivity suite including Word, Excel, PowerPoint, and Cowork. OpenAI stated in the blog post: "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."

Timing follows cost-cutting reports

The announcement comes three days after Bloomberg reported that Microsoft is replacing some OpenAI software with its own in-house models, known as MAI, to reduce costs. According to that report, the MAI models are increasingly powering applications like Word and Excel.

OpenAI's announcement appears designed to counter speculation about the partnership's status, though the company did not clarify what "preferred model" means in concrete terms beyond continued integration.

Partnership status remains ambiguous

The "preferred model" designation does not necessarily contradict Bloomberg's reporting. Microsoft can simultaneously use GPT-5.6 for certain Copilot functions while deploying MAI models elsewhere in its product suite.

Neither OpenAI nor Microsoft has disclosed specific deployment ratios, pricing arrangements, or which features use which models. The companies have not publicly addressed whether Microsoft's use of MAI models represents a shift in the partnership structure established when Microsoft invested $13 billion in OpenAI.

What this means

The vague "preferred model" language suggests both companies are managing a complex transition. Microsoft has clear financial incentives to reduce dependence on costly third-party models, while OpenAI needs to maintain its largest commercial partnership. The ambiguous phrasing allows both companies to claim continued collaboration while Microsoft likely increases MAI deployment in cost-sensitive areas. Watch for more specific disclosures about which Microsoft products use which models—until then, the actual division of labor remains unclear.

Related Articles

product update

Microsoft's Copilot gets access to local Windows files and OS-level actions under 'Hybrid Intelligence'

Microsoft announced an upgrade to Copilot at its Windows and Surface event that gives the assistant access to local files and the ability to take actions across Windows. The company calls the underlying approach "Hybrid Intelligence," which combines local and cloud AI models. Pricing, model details, and availability were not disclosed in the available reporting.

product update

Microsoft will turn Windows Search into a Copilot-connected command interface this fall

Microsoft announced a redesigned Windows Search menu that accepts short typed commands to change system settings and can converse with the new Copilot app without launching it. The company says the update arrives this fall. Model, pricing and availability details were not disclosed.

analysis

Mathematicians' group calls for OpenAI boycott after release of 700+ AI-generated proof files

The Association for Human Mathematics (AHM), chaired by Fields Medalist Terence Tao, is urging mathematicians to stop working with OpenAI after the company released more than 700 AI-generated manuscripts at once. The group says the release violates scientific norms. Critics say many of the papers are too dense to verify without AI assistance.

analysis

Only 10 of OpenAI's 719 math manuscripts include chain of thought, falling short of expert guidelines

OpenAI released 719 manuscripts claiming solutions to open math problems, but only 10 include the model's chain of thought. A Cambridge and King's College London paper also documents at least two discrepancies between the natural-language and Lean versions of OpenAI's Navier-Stokes-derived result.

Comments

Loading...