Microsoft adds Anthropic AI to Office 365, easing reliance on OpenAI
Microsoft is expanding its artificial intelligence partnerships, with plans to integrate Anthropic’s AI models into Office 365 applications, The Information reports, citing two sources familiar with the deal. The move marks a significant shift for Microsoft, which has so far leaned heavily on OpenAI’s technology to power its productivity tools.
According to the report, Anthropic’s latest model, Claude Sonnet 4, will soon support new features across Word, Excel, Outlook, and PowerPoint. In particular, Microsoft leaders believe Claude excels in generating visually appealing PowerPoint presentations—an area where OpenAI’s systems have lagged. The deal underscores Microsoft’s growing interest in diversifying its AI stack instead of relying solely on its longtime partner, OpenAI.
Strained ties with OpenAI
The shift comes against a backdrop of rising tensions between Microsoft and OpenAI. While Microsoft remains OpenAI’s largest investor and exclusive cloud partner, the startup has pursued its own independent infrastructure projects, including plans to manufacture custom AI chips with Broadcom by 2026. OpenAI is also stepping further into Microsoft’s turf with new business ventures, such as a job platform that could compete with LinkedIn.
At the same time, Microsoft is negotiating a fresh agreement with OpenAI to secure long-term access to its models following a proposed restructuring of OpenAI’s capped-profit governance structure. However, The Information notes that the Anthropic partnership is not a bargaining tactic. Instead, Microsoft views it as a pragmatic step toward enhancing Office 365’s AI-driven capabilities.
A new AI landscape
By bringing Anthropic into the fold, Microsoft signals a willingness to adopt a multi-model strategy, tapping whichever provider offers the best performance for specific use cases. The decision could set a precedent for how enterprise software platforms incorporate generative AI, blending strengths from different labs rather than betting on a single supplier.
For OpenAI, the partnership’s dilution could further highlight its push to gain independence from Microsoft’s ecosystem. With its chip initiative, expanded product portfolio, and growing enterprise ambitions, OpenAI is clearly working to reduce its reliance on Azure and carve out more control over its future.
The evolving dynamics between Microsoft, OpenAI, and Anthropic reflect a broader trend in the AI industry: as the technology matures, alliances are fluid, and competition is intensifying—even among close collaborators.
