Microsoft will soon use Anthropic's AI technology for certain Office 365 applications, with an announcement planned in the coming weeks. This strategic shift indicates the software giant is diversifying its artificial intelligence portfolio after primarily relying on OpenAI technology for Word, Excel, Outlook and PowerPoint applications. Microsoft has invested more than $13 billion in OpenAI, which gave it a significant head-start in the AI race, but has now decided to integrate multiple AI providers into its product portfolio.
Microsoft developers determined that Anthropic's latest models outperform OpenAI's technology in certain tasks, particularly in automating financial functions in Excel and generating PowerPoint presentations based on instructions. The Claude Sonnet 4 model creates more aesthetically pleasing PowerPoint presentations than OpenAI's GPT-5 model, which was a key factor in Microsoft's decision. According to sources, Microsoft will pay to access Anthropic models through Amazon Web Services (AWS), which is one of Anthropic's largest shareholders, while the price of Office AI tools will remain unchanged for users.
This diversification strategy is part of a broader Microsoft initiative as the company works on developing its own AI models and integrating DeepSeek models into Azure cloud to meet growing AI demand. According to TechCrunch's sources, there is a growing rift between Microsoft and OpenAI as the latter pursues its own infrastructure projects and a potential LinkedIn competitor. Despite this, a Microsoft spokesperson confirmed that OpenAI will continue to be their partner on frontier models and they remain committed to the long-term partnership.
Sources:
Rebecca Bellan
Ainvest
