Microsoft taps Anthropic for AI in Word and Excel, signaling distance from OpenAI

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Elyse Betters Picaro/ZDNET

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ZDNET's cardinal takeaways

  • Microsoft volition wage Anthropic for entree to its AI models.
  • They'll spell toward caller features successful Office 365 platforms.
  • Microsoft and OpenAI are distancing themselves from 1 another.

Microsoft volition slacken its dependence connected OpenAI done a caller concern with Anthropic, The Information reported connected Tuesday. The woody volition alteration Microsoft to embed Anthropic's AI systems into Microsoft 365 (formerly Office) platforms similar Excel, PowerPoint, and Word.

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This marks a turning constituent for Microsoft, which has different been mostly (though not entirely) reliant connected OpenAI's exertion to powerfulness its consumer-facing AI efforts. The institution has besides played a large relation successful fueling OpenAI's ascent to the forefront of the AI contention by investing much than $13 cardinal successful the institution since 2019.

(Disclosure: Ziff Davis, ZDNET's genitor company, filed an April 2025 suit against OpenAI, alleging it infringed Ziff Davis copyrights successful grooming and operating its AI systems.)

A increasing rift

Microsoft and OpenAI person been drifting isolated lately amid mutually shifting concern priorities. 

OpenAI, for its part, is reportedly readying to launch its ain level to vie with LinkedIn, which Microsoft owns. The institution is besides slated to commencement mass producing its ain AI chips successful concern with Broadcom starting adjacent year, which would marque it little babelike connected Microsoft's Azure for AI exemplary grooming and inference (when a exemplary is successful usage and actively making predictions based connected idiosyncratic requests). 

As OpenAI works to restructure itself arsenic a Public Benefit Corporation (PBC), Microsoft is reportedly successful talks with the start-up to unafraid a greater involvement than it presently owns and to guarantee that it would proceed to person entree to OpenAI's systems if and erstwhile the ChatGPT shaper achieves artificial wide quality (AGI), a inactive vaguely defined concept. 

Also: Microsoft is an AGI skeptic, but is determination hostility with OpenAI?

OpenAI is besides reportedly present paying Google for entree to its unreality computing software, further distancing itself from Microsoft and Azure.

OpenAI and Microsoft did not instantly reply to ZDNET's requests for comment.

Microsoft weighs its options 

Despite the mounting hostility betwixt the 2 companies, the caller Microsoft-Anthropic concern is much applicable than personal, according to The Information. 

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After comparing the show of Anthropic models similar Claude Sonnet 4 with the latest models from OpenAI, Microsoft has reportedly concluded that successful immoderate cases, Anthropic's are amended suited for optimizing the Microsoft 365 idiosyncratic experience, the study added.

News of the concern arrives little than 1 week aft Anthropic agreed to a $1.5 cardinal settlement in a class enactment lawsuit filed by 3 authors aft a justice ruled that the institution had illegally utilized copyrighted books to bid its AI models. It's the largest colony successful the past of US copyright cases.

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