Microsoft Launches 7 In-House ‘MAI’ AI Models to Cut Its OpenAI Reliance
Microsoft has introduced a new suite of seven ‘MAI’ AI models designed to reduce its dependency on OpenAI and lower infrastructure costs for Azure developers.
- Microsoft unveiled seven ‘MAI’ models at its Build 2026 conference, including the flagship reasoning model MAI-Thinking-1.
- The new models aim to cut costs for Azure developers by removing the need for licensing royalties associated with OpenAI.
- Microsoft AI chief Mustafa Suleiman claims the new models outperform GPT-5.5 on McKinsey benchmarks at one-tenth of the cost.
- Microsoft has reportedly capped revenue-sharing with OpenAI and ended its exclusive right to resell OpenAI’s models.
Microsoft has launched seven of its own AI models — branded “MAI” — in a clear move to lean less on OpenAI and cut costs for developers building on Azure. The lineup was unveiled at the company’s Build 2026 developer conference.
The flagship is MAI-Thinking-1, Microsoft’s first reasoning model, alongside MAI-Code-1-Flash, which turns plain-English descriptions into working source code for apps and websites. Microsoft also showed MAI-Image-2.5, MAI-Voice-2 and MAI-Transcribe-1.5, rounding out a full multimodal stack.
Why it matters
The pitch is economics. By running these models on its own Azure infrastructure instead of licensing them, Microsoft avoids royalty payments and says it can pass the savings on. Microsoft AI chief Mustafa Suleiman claimed the new models beat OpenAI’s GPT‑5.5 on McKinsey’s benchmarks while costing roughly a tenth as much — and the company has reportedly capped revenue‑sharing with OpenAI and dropped its exclusive right to resell OpenAI’s models.
For anyone shipping software, MAI‑Code‑1 is the one to watch: a cheaper code model baked into the Microsoft stack changes the math on AI coding assistants. If you’re deciding which one to actually build with, our hands‑on guide to the best AI coding tools breaks down where each lands on speed, accuracy and price.
Frequently asked questions
What is the purpose of the new ‘MAI’ models?
The MAI models are designed to reduce Microsoft’s reliance on OpenAI and lower development costs for users on the Azure platform.
How do the new MAI models compare to GPT-5.5?
According to Microsoft AI chief Mustafa Suleiman, the new models outperform GPT-5.5 on McKinsey benchmarks while costing approximately one-tenth as much.
Choosing a tool in this space? See our independent, independent verdict before you pay.
Best AI coding tools →Source: The Verge. Published June 21, 2026.
Ali has independent tested 50+ AI tools and tracks model releases daily. Every verdict here comes from real, paid usage — never vendor demos or sponsored placements.
AI Tools Worth is independent and unsponsored. Some linked guides contain affiliate links — they never change our verdicts.
Assessed verdicts, real price changes and the launches that matter. No hype, no spam — unsubscribe anytime.