<div id="readability-page-1"><div><div>Microsoft Corp. MSFT is planning significant investments in proprietary artificial intelligence chip infrastructure to achieve “self-sufficiency in AI,” according to leaked comments from AI CEO Mustafa Suleyman during an internal town hall meeting on Thursday.Check out the current price of MSFT stock here.<h2>Microsoft Diversifies Beyond OpenAI Dependency</h2>The Redmond-based tech giant is moving to reduce reliance on its $13 billion OpenAI partnership amid ongoing contract renegotiations. Suleyman told employees the company must “be self sufficient in AI” given its business diversity and scale, reported Business Insider.“We should have the capacity to build world class frontier models in-house of all sizes, but we should be very pragmatic and use other models where we need to,” Suleyman stated during the meeting.Microsoft’s strategy now encompasses open-source models, third-party partnerships, and internal development. The company recently began integrating Amazon.com Inc. AMZN-backed Anthropic‘s Claude AI into Office 365 applications after testing showed superior performance in Excel financial functions and PowerPoint slide generation.<h2>Infrastructure Investment Gap Highlights Competitive Pressure</h2>Suleyman revealed Microsoft’s MAI-1-preview foundation model was trained on just 15,000 Nvidia Corp. NVDA H100 chips—a “tiny cluster” compared to competitors. Models from Alphabet Inc. GOOGL GOOG, Meta Platforms Inc. META and Elon Musk‘s xAI used clusters six to 10 times larger.MAI-1-preview currently ranks 24th on LMArena’s text model leaderboard, indicating substantial development needs. The planned chip investments aim to close this infrastructure gap and support in-house model development.<h2>Partnership Evolution Maintains Commercial Benefits</h2>CEO Satya Nadella reassured employees about continued OpenAI collaboration during the town hall. “We have a very good partnership with OpenAI… they’re each other’s customers,” Nadella said, emphasizing the mutual commercial relationship.Microsoft and OpenAI signed a non-binding agreement Thursday to restructure their partnership terms. The deal could enable OpenAI’s conversion to a for-profit entity while maintaining Microsoft’s access to advanced models. OpenAI is pursuing a $500 billion valuation through secondary stock sales, up from $300 billion earlier this year.<ul> <li>Alibaba Stock Pops 6% In Hong Kong As Homegrown AI Chips Rival Nvidia’s H20, $3.2 Billion Bond Raise Fuels Rally</li> </ul>Photo courtesy: Shutterstock</div></div></div>

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Microsoft Corp. is set to invest heavily in proprietary AI chip infrastructure to achieve self-sufficiency in AI, as stated by AI CEO Mustafa Suleyman. This move aims to reduce reliance on its $13 billion partnership with OpenAI amid contract renegotiations. Suleyman emphasized the need for in-house capabilities to build advanced AI models. Microsoft is also integrating Anthropic's Claude AI into Office 365. The company plans to close its infrastructure gap, as its current AI model ranks lower than competitors. CEO Satya Nadella confirmed ongoing collaboration with OpenAI while restructuring partnership terms.

- Microsoft Corp. is planning significant investments in proprietary AI chip infrastructure to achieve self-sufficiency in AI, as stated by AI CEO Mustafa Suleyman during an internal meeting.  
- The company aims to reduce reliance on its $13 billion partnership with OpenAI and is diversifying its strategy to include open-source models and third-party partnerships.  
- Microsoft’s MAI-1-preview model currently ranks 24th on LMArena’s leaderboard, highlighting the need for infrastructure improvements, while the company continues to collaborate with OpenAI under a newly restructured agreement.  

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Microsoft Plans Major AI Chip Investments As Mustafa Suleyman Pushes 'Self-Sufficiency' Beyond OpenAI Partnership