In addition to OpenAI's models, Microsoft is also deploying Claude

"For years, Microsoft worked almost exclusively with OpenAI, in which it has invested more than $13 billion. This collaboration gave the company a solid lead in the AI market. However, Microsoft is now opting for a broader approach. Developers involved in the AI features in Office have reportedly found that Anthropic's latest models perform better than OpenAI's in specific tasks, such as automating financial calculations in Excel or creating attractive presentations in PowerPoint."

"The collaboration with Anthropic means that Microsoft also uses Amazon Web Services (AWS). This cloud platform provides access to Anthropic's models and is also one of the AI company's largest shareholders. This is striking for Microsoft, as AWS is a direct competitor to its own Azure cloud. Nevertheless, the quality of the models seems to be important enough for Microsoft to take this step."

"According to The Information, the collaboration with OpenAI will continue. Microsoft will continue to rely on that company's models for so-called frontier models, the most advanced variants that push the boundaries of technology. OpenAI recently launched GPT-5, which, according to the report, offers a clear improvement in quality. Nevertheless, Anthropic's Claude Sonnet 4 is said to score better in terms of creative and aesthetic output, particularly when generating presentations."

Microsoft is broadening its AI supplier strategy for Office applications by integrating Anthropic's models to improve functions in Word, Excel, Outlook, and PowerPoint. Developers found Anthropic's latest models outperform OpenAI's on specific tasks like automating financial calculations in Excel and producing more attractive PowerPoint presentations. Access to Anthropic's models uses Amazon Web Services, despite AWS competing with Microsoft's Azure, because model quality is prioritized. Microsoft will maintain its OpenAI partnership for frontier models such as GPT-5 while also developing in-house models and integrating DeepSeek into Azure to expand capacity for growing AI service demand. Office 365 AI pricing remains unchanged.

Read at Techzine Global