Microsoft is expanding beyond OpenAI’s technology for its Microsoft 365 Copilot service, according to a Reuters report by Anna Tong and Krystal Hu. The company is working to integrate both internal and third-party AI models to reduce costs and improve performance. While OpenAI remains a partner for advanced AI models, Microsoft aims to make the enterprise software suite more efficient by incorporating its own smaller models, including Phi-4, and other open-weight models. The initiative, closely monitored by CEO Satya Nadella, could lead to cost savings for customers. The move follows similar diversification efforts in other Microsoft products, such as GitHub and consumer Copilot. Despite adoption challenges, Microsoft reports that 70% of Fortune 500 companies are currently using 365 Copilot, with analysts expecting over 10 million paid users this year.