Microsoft Replacing OpenAI Image AI Models in PowerPoint and Bing with Proprietary In-House Technology

What happened

Bloomberg reported on July 23 that Microsoft is replacing OpenAI's image-generating models in products including PowerPoint and Bing with its own internally developed visual AI technology. No pricing or timeline details were disclosed.

Context and impact

This follows the recent report of Microsoft replacing OpenAI and Anthropic language models in Copilot with its own MAI models. Together, these moves signal a systematic push toward AI independence across Microsoft's product portfolio — even as the formal OpenAI partnership continues. For OpenAI, it represents a loss of distribution reach in the world's most-used office productivity suite.

Details

• Products affected: PowerPoint and Bing (at minimum)
• Model type: image generation (not language models)
• Technology: proprietary Microsoft in-house visual AI
• Prior move (separate story): replaced OpenAI/Anthropic language models in Copilot with MAI
• Microsoft provided no pricing or timeline details
• OpenAI loses distribution channels at one of the world's largest software players