Microsoft is working to add non-OpenAI models to its 365 Copilot products, according to Reuters.

Citing people familiar with the matter, Monday's report said Microsoft has been working to add in-house and third-party artificial intelligence models to power its flagship AI product, Microsoft 365 Copilot, in order to move away from the current underpinnings from OpenAI and reduce costs.

Microsoft is also looking to reduce 365 Copilot's reliance on OpenAI due to concerns about cost and speed for enterprise users, the people said.

In response, a Microsoft spokesperson said that OpenAI will continue to be the company's partner in cutting-edge modeling.

The original agreement between Microsoft and OpenAI allowed the U.S. software giant to customize OpenAI's models.

In addition to training its own small models, including the latest Phi-4, Microsoft is also working to customize other open-weight models to make 365 Copilot faster and more efficient, the sources added.