Microsoft to Integrate Anthropic’s AI Into Office 365 Apps, Expanding Beyond OpenAI

Microsoft is set to incorporate Anthropic’s artificial intelligence into its Office 365 suite, including Word, Excel, Outlook, and PowerPoint, according to a report from The Information, which cites two sources familiar with the deal. This marks a strategic shift for Microsoft, which has so far relied exclusively on OpenAI’s models to power AI features in its productivity tools.

The move signals Microsoft’s intention to diversify its AI partnerships amid growing tensions with OpenAI — its long-time AI partner — which has recently taken steps to build its own infrastructure and even launch a LinkedIn competitor.

The deal with Anthropic is not a pressure tactic in negotiations with OpenAI. Microsoft executives reportedly believe that Anthropic’s latest model, Claude Sonnet 4, outperforms OpenAI’s offerings in certain areas — such as designing more visually appealing PowerPoint presentations.

This isn’t Microsoft’s first step toward broadening its AI ecosystem. While OpenAI remains the default provider, Microsoft has already introduced access to models from other companies — including Anthropic’s Claude and xAI’s Grok — through GitHub Copilot.

Additionally, Microsoft is working to reduce its long-term reliance on external AI providers. It recently unveiled two in-house models: MAI-Voice-1 and MAI-1-preview, furthering its efforts toward AI self-sufficiency.

At the same time, OpenAI appears to be distancing itself from Microsoft’s ecosystem. The company recently launched a new jobs platform aimed at competing with Microsoft-owned LinkedIn. It’s also reportedly preparing to manufacture its own AI chips in partnership with Broadcom by 2026. If successful, this would allow OpenAI to train and deploy models on its own hardware — instead of relying on Microsoft’s Azure cloud infrastructure.

Despite the growing independence on both sides, Microsoft maintains that its relationship with OpenAI remains intact.