Microsoft Corp., looking to reduce AI costs, is starting to replace OpenAI and Anthropic with its own models in software products like Excel and Outlook.

Microsoft stock is under pressure as the company cuts 4,800 jobs, trims Xbox staff, and reshapes its gaming portfolio while AI spending remains in focus.

Microsoft is cutting about 2.1% of its workforce, or roughly 4,800 jobs, the latest in a wave of tech layoffs as the Windows maker spends heavily on AI infrastructure and ​uses the technology to improve efficiency across its business.

CEO Satya Nadella on the April earnings call reframed the entire debate over how quickly generative AI can turn into a real profit-and-loss line. The company’s AI business now operates at scale, and the growth rate suggests the ramp is still in its early innings.

Improve Microsoft Advertising performance with stronger AI signals, measurement, creative, and campaign structure.