Microsoft taps Anthropic AI for Office 365, reduces OpenAI dependence
What's the story
Microsoft will license Anthropic's technology for certain AI features in its Office 365 applications, according to a report by The Information. The decision highlights the company's effort to diversify its artificial intelligence portfolio beyond a single partner. The integration will bring Anthropic's models alongside those from OpenAI in tools such as Word, Excel, Outlook, and PowerPoint. Until now, Microsoft had relied mainly on OpenAI to power its AI-driven features across the productivity suite.
Strategic shift
Microsoft's growing rift with OpenAI
The decision to integrate Anthropic's tech comes as Microsoft faces a growing rift with OpenAI. The latter has been pursuing its own infrastructure projects and a potential LinkedIn competitor. Despite this, a Microsoft spokesperson said, "OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership."
Performance comparison
Claude Sonnet 4 outperforms OpenAI's models
Developers working on Office AI features found that Anthropic's latest models, especially Claude Sonnet 4, outperformed those of OpenAI in automating tasks. These include financial functions in Excel and generating PowerPoint presentations from instructions. The report notes that Microsoft will pay Amazon Web Services (AWS), a major shareholder of Anthropic, to access these advanced models.
AI development
Microsoft developing its own AI models
Along with integrating Anthropic's tech, Microsoft is also developing its own AI models. The company is working on integrating DeepSeek's models into the Azure cloud as part of its efforts to maximize AI output. Despite these changes, the price of AI tools in Office will remain unchanged, according to reports.