According to a report from Seeking Alpha, Microsoft is developing a new internally developed artificial intelligence (AI) model that surpasses its existing open-source models in size. Known as MAI-1, the model is anticipated to contain around 500 billion parameters. The objective is to compete with models produced by Google, OpenAI (an investment of Microsoft's), and other companies. However, Microsoft declined to provide a comment on the matter when contacted. In a LinkedIn post, Microsoft Chief Technology Officer Kevin Scott explained that AI models are crucial components of their products and services.

He mentioned that Microsoft Research and product groups also create AI models, sometimes starting from scratch or fine-tuning existing models. The team responsible for MAI-1 is led by Mustafa Suleyman, who recently joined Microsoft after his involvement with DeepMind, which was acquired by Google, and serving as CEO of Inflection AI. Microsoft hired a significant portion of the Inflection AI staff and secured the rights to its intellectual property for $650 million. It is speculated that Microsoft might provide a preview of MAI-1 at its upcoming Microsoft Build developer conference. Earlier this year, the hiring of Suleyman and his appointment as the head of Microsoft's consumer AI unit consolidated all of the company's consumer AI business under a single leader.