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After thousands of layoffs, Microsoft’s cost cutting drive hits OpenAI and Anthropic

Microsoft is replacing external AI models with its own internally developed systems. This strategic shift aims to significantly reduce operational costs for the tech giant. Tens of thousands of AI prompts are now handled by Microsoft's own MAI models. The company is developing competitive AI capabilities at a much lower expense. This move aligns with a stated goal to decrease financial dependence on outside AI labs.

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