In Summary. Posted: . 5:16 PM Pacific Daylight Time, July 9, 2026. This week, it was revealed by Bloomberg that Microsoft is using its own proprietary models to replace certain aspects of OpenAI’s software in an effort to reduce expenses. Inside stories suggest that Microsoft’s AI technology, known as MAI, was utilized to enhance applications such as Word and Excel, according to recent reports. This development has led to speculations about the future of Microsoft and its relationship with AI, as their connection seems to be evolving with mixed signals. Currently, OpenAI is working on dispelling any suggestions of a rupture. On Thursday, OpenAI launched GPT 5.6 and revealed that it would become the ‘preferred model’ for Microsoft’s 365 Copilot. OpenAI’s blog post stated that GPT 5.6 would provide support to Microsoft users in all their productivity apps, such as Word, Excel, PowerPoint, and Cowork. The partnership between OpenAI and Microsoft aims to bring advanced AI benefits to more individuals and organizations. While it’s unclear what being a ‘preferred model’ entails, OpenAI’s software will continue powering Microsoft’s apps. It was never reported that ChatGPT’s software would stop powering Microsoft’s apps; instead, Microsoft is relying more on its own software to reduce costs. The recently introduced “preferred model” revelation doesn’t seem to contradict the earlier information provided.

OpenAI says GPT 5.6 is the ‘preferred model’ for Microsoft Copilot 365 amid breakup chatter
- by stefan