Microsoft is set to expand its physical infrastructure to train its own artificial intelligence models as it looks to compete with leading players such as OpenAI and Anthropic.
Mustafa Suleyman, Microsoft’s consumer AI chief, told employees during an all-hands meeting on Thursday that the company will make “significant investments” in building clusters of computing power for AI model training. He explained that for a company of Microsoft’s scale, it is critical to have the ability to be self-sufficient in AI if needed. He added that Microsoft is pursuing a strategy that combines strengthening its partnership with OpenAI, working with other model makers and developing its own models.
Microsoft has long depended on large language models from OpenAI to power its products. However, competition between the two has grown as both companies launch their own products and partnerships. Suleyman, who co-founded DeepMind before joining Microsoft last year, has been leading efforts to build the company’s AI capabilities and establish a new consumer-focused AI franchise.
Last month Microsoft unveiled the first of its large language models developed under Suleyman. The model was trained using 15,000 Nvidia H100 chips. By comparison, top models from Meta, Google and Elon Musk’s xAI used clusters six to ten times larger. Suleyman highlighted this as a sign of greater efficiency in Microsoft’s approach.
Chief Executive Officer Satya Nadella also emphasised that Microsoft will follow a multimodel strategy, integrating whichever AI models customers prefer across its products. Earlier this week, reports indicated that Microsoft is preparing to use Anthropic’s models in some of its services.
Microsoft declined to provide further comment on the plans.
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