# Report: Microsoft is working on multiple AI models for different tasks. *genai, business · news · 2026-05-29 · India Today* ## Key points - Microsoft will unveil its own in-house coding-focused AI model at the Build conference. - Thousands of Microsoft employees were given access to Anthropic's Claude Code for internal testing. - Microsoft plans to reduce internal use of Claude Code and shift teams to Copilot-based tools. - Reducing third-party AI tool usage is expected to help Microsoft lower operating expenses. - Microsoft is considering acquisitions of AI startups to strengthen its internal AI capabilities. Microsoft is preparing to enter the AI coding race more aggressively with a new in-house model that could directly challenge tools from OpenAI and Anthropic. The company is reported to reveal the new technology during its annual Build developer conference in San Francisco next week, where several AI announcements are likely to take center stage. According to a fresh report from The Information, Microsoft is working on multiple AI models for different tasks, including coding, image creation, speech, reasoning and transcription. Among them, the coding-focused model is said to become a major part of GitHub Copilot, which is Microsoft's AI-powered assistant for developers. The move comes at a time when competition in the AI coding segment is heating up rapidly. While Microsoft was among the earliest companies to benefit from the AI boom through its partnership with OpenAI, the company is now trying to strengthen its own independent AI ecosystem. In recent months, Microsoft and OpenAI have reportedly revised parts of their partnership structure as both companies look to reduce dependence on one another, according to The Verge. GitHub Copilot currently uses technology from several AI companies, including OpenAI, Anthropic and Google. But newer coding assistants, especially Anthropic’s Claude Code, have reportedly started attracting strong interest from developers. The growing popularity of such tools appears to have pushed Microsoft to accelerate work on its own alternatives. According to reports, Microsoft itself allowed thousands of employees to use Anthropic’s Claude Code internally over the past several months. Thousands of employees across different departments were reportedly given access to Claude Code so they could experiment with AI-assisted software development. The tool quickly became popular inside the company because it allowed even non-engineering employees to try coding tasks more easily. However, Microsoft now appears to be changing direction. The company is reportedly planning to reduce internal usage of Claude Code by the end of JUne and encourage teams to move toward its own Copilot-based command line tools instead. The transition is expected to happen gradually over the coming weeks as Microsoft focuses more heavily on products developed within its own ecosystem. Financial factors may also be influencing the decision. A The Verge report indicated that reducing third-party AI software usage could help Microsoft lower operating expenses as the company enters its next financial year. At the same time, the change also gives Microsoft greater control over how its AI tools evolve in the future. Anthropic's rise adds pressure on Microsoft The company’s bigger AI ambitions are becoming increasingly clear. A recent Reuters report suggested Microsoft has been exploring possible acquisitions of AI startups to strengthen its expertise and improve its chances of building advanced AI systems internally. The company reportedly wants to develop cutting-edge AI models capable of competing with the best offerings in the market. Meanwhile, Anthropic’s rise has added fresh pressure to the competition. The AI startup has seen rapid growth largely due to the popularity of Claude Code and its other AI products. The company recently announced a new funding round worth $65 billion, which pushed its valuation to nearly $965 billion, placing it ahead of several major AI rivals. Anthropic also revealed that its annualised revenue run rate has climbed to around $47 billion, showing how quickly demand for AI coding tools is growing across the industry. As for Microsoft, the good news here is that investors appear optimistic about Microsoft’s latest strategy. The company’s shares moved higher after reports about the upcoming AI announcements surfaced. If you are now closely waiting for the Build conference to see whether Microsoft can position itself as a stronger independent AI player rather than relying mainly on outside partners, you can stay tuned to India Today Tech for all the updates. - Ends **Companies:** Microsoft, Google, Anthropic **Countries:** United States [Read the full story on India Today](https://www.indiatoday.in/technology/news/story/microsoft-ai-coding-model-github-copilot-build-openai-anthropic-business-2918990-2026-05-29) --- Canonical: https://newsio.io/n/6b43275d-86e9-47cb-90e7-584f40ceafd0/report-microsoft-is-working-on-multiple-ai-models-for-different-tasks-the-coding Summarized by Newsio from India Today. https://newsio.io/how-it-works