Microsoft to lessen reliance on OpenAI by buying AI from rival Anthropic (techcrunch.com)

Microsoft is expanding its AI partnerships by integrating Anthropic’s advanced models, specifically Claude Sonnet 4, into Office 365 apps like Word, Excel, Outlook, and PowerPoint, moving beyond exclusive reliance on OpenAI’s technology. This strategic shift aims to enhance Microsoft’s productivity suite with diverse AI capabilities, as Anthropic’s models reportedly excel in tasks such as generating visually compelling PowerPoint presentations. The move also reflects deeper tensions between Microsoft and OpenAI, as the latter pursues independent infrastructure projects and competitive platforms. Significantly, this diversification comes while Microsoft negotiates a new deal with OpenAI amid OpenAI’s pending shift to a for-profit structure. However, sources suggest the Anthropic collaboration isn’t just a bargaining chip but a genuine preference based on performance advantages. Meanwhile, OpenAI is asserting greater autonomy from Microsoft by launching a jobs platform rivaling LinkedIn and planning to manufacture its own AI chips with Broadcom by 2026, potentially reducing its dependence on Microsoft Azure’s cloud infrastructure. This evolving dynamic signals intensifying competition and innovation among leading AI developers, with broader implications for the industry’s hardware and software ecosystems.