Microsoft AI CEO Mustafa Suleyman announced a pricing strategy to undercut rival Anthropic. Suleyman labeled Anthropic’s models as extremely expensive to attract cost-conscious customers. The company aims to join the ranks of top-tier AI labs including OpenAI and Google DeepMind.
Microsoft unveiled seven new in-house AI models at its Build conference. One new coding model reportedly matches Anthropic’s Opus 4.6 performance at a lower cost.
Microsoft plans to reduce its reliance on external partners through these homegrown models. The strategy targets improved margins by eliminating the fees associated with competitor models.