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.