Microsoft is replacing OpenAI image models in PowerPoint, Bing - The Seattle Times

What the report says

Bloomberg reported that Microsoft Corp. is moving some of its consumer-facing AI image generation away from OpenAI models and toward Microsoft-built technology. The change affects widely used products including PowerPoint and Bing, according to the report, signaling that Microsoft is beginning to substitute its own image-generation systems in areas where it previously relied on OpenAI.

The limited public summary does not provide details on the specific Microsoft models being deployed, the timing of the rollout, or whether the transition applies globally or only to selected users and features. It also does not state whether OpenAI tools will remain in other Microsoft products, or whether the shift reflects cost, performance, safety, licensing, or strategic considerations.

The development matters because Microsoft has been one of OpenAI’s most important commercial partners and investors, integrating OpenAI technology across products such as Microsoft 365, Bing and Copilot-branded services. A move to replace OpenAI image models in prominent applications would suggest Microsoft is seeking more direct control over at least part of its AI stack.

As broader context, major technology companies have been building and tuning in-house AI models while also partnering with specialist labs. For Microsoft, using its own image-generation systems could potentially give it more flexibility over product design, infrastructure and moderation policies, though Bloomberg’s publicly available snippet does not specify the company’s rationale or any response from Microsoft or OpenAI.