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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →In May 2024, Reuters reported that Microsoft was training an in-house AI model called MAI-1 that could compete with models from OpenAI and Google. Microsoft did not confirm the project’s reported size, purpose, or performance. The report is best understood as evidence of Microsoft pursuing its own AI capabilities alongside its OpenAI partnership—not as an announcement that it was replacing OpenAI.
What did the 2024 report say about MAI-1?
On May 6, 2024, Reuters relayed a report from The Information, which cited two Microsoft employees familiar with the effort. It said Mustafa Suleyman oversaw an in-house model project called MAI-1. Reuters reported that Microsoft had not settled on the model’s exact purpose and would judge it by its performance. The report also said the model might be previewed at Microsoft Build.
The same report gave an estimate of roughly 500 billion parameters and compared MAI-1 with GPT-4 and Microsoft’s Phi-3 mini. Those were reported estimates and comparisons, not confirmed specifications or benchmark results. Reuters said Microsoft declined to comment. Read Reuters’ report, republished by Investing.com.
Why build models while partnering with OpenAI?
Microsoft’s public statements in 2024 pointed to a parallel strategy. On March 19, the company announced a new Microsoft AI organization led by Suleyman and Karén Simonyan, focused on Copilot, consumer AI products, and research. In the same announcement, CEO Satya Nadella said, “Our AI innovation continues to build on our most strategic and important partnership with OpenAI.” Microsoft’s announcement of Microsoft AI.
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Developing internal models can give a company more options over how it builds and delivers AI products. A partnership can continue to provide access to another company’s models and technology. In Microsoft’s own 2024 framing, those approaches coexisted; the MAI-1 report did not establish that Microsoft planned to abandon OpenAI.
What is known about Microsoft’s MAI models now?
Microsoft later publicly described a broader MAI model family. In its FY2026 Q4 earnings-call transcript, Microsoft said its cloud catalog contained more than 11,000 models, including the MAI family, and that it had announced more than a dozen models across image, voice, transcription, coding, and security. These are Microsoft’s company-reported portfolio figures and are specific to that earnings-call account. Microsoft FY2026 Q4 earnings-call transcript.
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This later portfolio information shows that Microsoft develops and offers models under the MAI name. It does not establish that the specific MAI-1 project reported in 2024 launched as described, or that a released MAI model matches GPT-4 in capability. The sources do not provide a comparable current benchmark, so they do not support naming a winner.
How have Microsoft’s OpenAI partnership terms changed?
The terms have changed over time, so older descriptions should not be treated as current. Microsoft’s January 21, 2025 statement said key partnership elements remained in place through 2030, including access to OpenAI intellectual property, API exclusivity, revenue sharing, and Microsoft’s position as a major investor. It also described a change concerning exclusivity on new capacity. That statement is a dated snapshot, not the latest agreement. Microsoft’s January 2025 partnership statement.
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On April 27, 2026, Microsoft announced an amended agreement with different terms. According to Microsoft:
- Microsoft remains OpenAI’s primary cloud partner.
- Microsoft’s license to OpenAI intellectual property continues through 2032, but is non-exclusive.
- Microsoft no longer pays revenue share to OpenAI.
- OpenAI’s revenue-share payments to Microsoft continue through 2030, subject to a total cap.
- The companies continue to collaborate on datacenter capacity, silicon, and cybersecurity.
These terms are Microsoft’s description of the amendment. Microsoft’s April 2026 announcement.
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Does the reporting verify a $10 billion investment?
No. The sources cited here support that Microsoft invested in OpenAI and describe the partnership, but they do not independently verify the precise $10 billion figure. It should not be presented as established by these sources.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What can readers conclude about MAI-1 versus GPT-4?
The available evidence supports a limited conclusion: Microsoft reportedly worked on MAI-1 in 2024, later publicly described an MAI model family, and has continued to describe a relationship with OpenAI under amended terms. It does not establish that the reported MAI-1 became a GPT-4-equivalent product or show how current MAI models compare with GPT-4.
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- Brilliant Display – Stunning 13.8" PixelSense touchscreen[1], with brilliant LCD display[2], unleashes luminous whites, deeper blacks and colors so richly saturated bringing vivid life into every frame – perfect for work, school, streaming and creative tasks.
- Power that lasts all day – With 20 hours of battery life[3], the new Surface Laptop powers through your entire day, so you can create, work and stream from morning to night without reaching for a charger.
- Work at the speed of your ideas – Built with the latest Qualcomm Snapdragon X2 Elite (12 Core) processors, Surface Laptop delivers fast, AI‑accelerated performance—making it the most powerful Surface laptop for everything from multitasking to demanding workloads.
- The ports you need – Charge on-the-go, transfer data fast, or create the ultimate desktop set up with two USB-C / USB4[4] ports.
- Built-in AI Companion – Work smarter, create freely, and communicate with confidence—Copilot[5] on Windows 11 is always there to help.
A meaningful comparison would require the same versions tested on the same tasks, with evaluation date, access method, cost, latency, context limits, multimodal features, and evaluation method disclosed. Parameter estimates alone do not establish model quality.
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