Microsoft is moving more Excel and Outlook AI experiences onto internally controlled models and orchestration layers so it can choose which model runs each task, reduce dependency on external vendors, manage per-task costs, and keep productivity features aligned with its platform strategy. That change affects pricing, governance, latency, and admin controls for Microsoft 365 users who rely on embedded AI in spreadsheets and email.
Microsoft partners with OpenAI to put OpenAI's language models into Microsoft products and to expand Azure's AI services. Alphabet funds DeepMind to develop AI in-house and apply those advances across Google products; which is the better investment depends on whether you prioritize rapid access to third-party models or long-term proprietary control.
Microsoft, Google, and xAI are providing the US government with early access to their AI models so federal agencies can evaluate and address security and ethical risks before those models reach the public. The companies intend this review to reduce the chance of misuse and inform security standards and governance for future deployments.
