Microsoft NASDAQ:MSFT stock rose about 2% early Thursday after a report said the software giant is training its sales force to promote its in-house artificial intelligence models as a lower-cost alternative to offerings from OpenAI, Alphabet NASDAQ:GOOG, and Anthropic.
Microsoft has reportedly provided sales teams with internal guidance highlighting the lower operating costs of its proprietary AI models and their tighter integration with the company's software ecosystem. Sales representatives are also being coached on addressing customer concerns about relying on third-party frontier AI model providers.
The initiative reflects Microsoft's broader effort to expand its own AI portfolio while continuing to offer customers a range of models through its Azure cloud platform. The report follows earlier indications that Microsoft had replaced certain OpenAI and Anthropic models with internally developed technology in applications including Word and Excel as part of a cost-reduction strategy.
Microsoft remains a major investor in OpenAI but has increasingly focused on developing proprietary AI models alongside that partnership.