this post was submitted on 08 Jul 2026
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Microsoft is replacing OpenAI and Anthropic models with its own MAI models in Excel and Outlook to cut soaring AI costs.

Heavy AI users can cost up to $14,000 on a $200 subscription, forcing companies to subsidize usage and seek cheaper alternatives.

Microsoft's in-house models perform significantly worse than premium rivals, closer to open-source options like DeepSeek than Anthropic's best models.

Businesses are switching to Chinese AI providers charging 18 cents per million tokens versus $4 for Western models, reshaping the industry.

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[–] Carl@hexbear.net 10 points 1 week ago* (last edited 1 week ago) (1 children)

Businesses are switching to Chinese AI providers charging 18 cents per million tokens versus $4 for Western models, reshaping the industry.

It'll be interesting to see how/if China responds to this shift. Back when crypto was booming, the strain on the grid from the increased power draw triggered mining bans in some cities. This is inherently one of the problems a modern electrical grid at subsidized prices will always have to deal with - people who use a lot of electricity all want to move their operation to where it is cheaper.

[–] jackmaoist@hexbear.net 9 points 1 week ago (1 children)

Chinese models are open weight so western data centers just run it themselves and offer them as services. I expect Chinese labs to make their models proprietary when their popularity inevitably rises.

[–] peeonyou@hexbear.net 1 points 1 week ago

I don't know that they will