Office 365 to soon use Claude instead of OpenAI

Microsoft is apparently tired of putting all its AI eggs in OpenAI’s basket. 

According to The Information, the company has signed a deal with Anthropic to bring its Claude models into Office 365. 

This marks a big shift for Microsoft, which until now leaned heavily (almost exclusively) on OpenAI’s tech to fuel its productivity suite.

Why the sudden diversification? Well, partly because Microsoft and OpenAI have been feeling the strain of their very public “it’s complicated” relationship. 

OpenAI has been busy chasing its own projects, everything from a rumored LinkedIn rival to building AI chips with Broadcom, while Microsoft seems intent on not being left holding the bag. 

Adding Anthropic to the mix ensures Microsoft isn’t entirely dependent on a partner that could one day outgrow it.

But don’t assume this is just a messy breakup tactic. Sources told The Information this isn’t about playing hardball with OpenAI in contract talks. 

Microsoft genuinely thinks Anthropic’s Claude Sonnet 4 is better than OpenAI’s models in certain areas, like making PowerPoint presentations that actually look good instead of resembling a middle-school group project.

This isn’t Microsoft’s first foray into AI variety, either. GitHub Copilot already lets developers pick from models like Anthropic’s Claude and xAI’s Grok. 

And just to hedge its bets further, Microsoft has started cooking up its own AI brains, MAI-Voice-1 and MAI-1-preview, because nothing says “trust issues” like building your own alternatives.

Meanwhile, OpenAI is hardly sitting idle. The company just launched a jobs platform (a not-so-subtle jab at Microsoft’s LinkedIn) and plans to mass-produce AI chips by 2026, giving it more independence from Microsoft’s Azure cloud.

Still, both sides insist they’re staying friends. “OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership,” Microsoft spokesperson Michael Collins told TechCrunch. 

That’s another way of saying: it’s not a divorce, just an open relationship.

Is Microsoft’s move to diversify its AI partnerships with Anthropic a smart hedge against over-reliance on OpenAI, or does it signal deeper problems in their high-profile collaboration? Should tech companies maintain exclusive AI partnerships for better integration, or spread their bets across multiple providers for competitive advantage? Tell us below in the comments, or reach us via our Twitter or Facebook.