Microsoft and OpenAI have worked closely since 2019, with Microsoft investing over $13 billion in the ChatGPT maker. However, the partnership seems to be shifting. Microsoft’s AI division, now led by Mustafa Suleyman, co-founder of DeepMind and Inflection, has been expanding its in-house capabilities.

Microsoft has created in-house artificial intelligence models it believes can go toe-to-toe with industry leaders including partner OpenAI, according to a person familiar with the situation.