Microsoft Delivers Bad News to AI Partners with In-House Model Rollout

As of June 10, Microsoft is accelerating its shift away from external AI suppliers by integrating seven in-house MAI models into products like GitHub Copilot. The strategy began with a May 28 Information report that lifted shares nearly 3% to $424.55 ahead of the Build conference. On June 2, Microsoft unveiled MAI-Thinking-1, MAI-Code-1-Flash and other models plus the Majorana 2 quantum chip, claiming 10x cost efficiency versus GPT-5-5 and a $3.34 trillion market cap at $460.52. Shares later fell 4% amid profit-taking and $140 billion FY2026 capex estimates, yet analysts maintain a $557.90 median target as the company reduces reliance on OpenAI and Anthropic.