Microsoft adds Anthropic AI to Office Copilot, reducing OpenAI reliance

Microsoft will integrate Anthropic’s Claude models into Office 365 Copilot, marking its biggest step yet away from exclusive reliance on OpenAI. Internal testing showed Anthropic outperforming OpenAI at spreadsheet automation and PowerPoint generation, leading Microsoft to split workloads between the two providers. The shift comes amid tense negotiations over OpenAI’s corporate restructuring and despite Microsoft paying Amazon Web Services to access Anthropic’s models, unlike its free usage rights with OpenAI. Office 365 Copilot already has more than 100 million users, and analysts estimate it is generating over $1 billion annually.