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Microsoft joins AI cost-cutting trend by relying more on its own models

Tuesday, July 7, 2026


Microsoft increased its reliance on proprietary artificial intelligence models rather than third-party options, according to internal communications reviewed by Reuters. The company reduced spending on external AI services as part of a broader efficiency effort. Microsoft did not publicly confirm the scope or timeline of the changes.

Original reporting: https://techcrunch.com/2026/07/07/microsoft-joins-ai-cost-cutting-trend-by-relying-more-on-its-own-models/

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