Microsoft will reportedly announce an internally developed AI model for code generation at next week's Build developer conference. The company plans to integrate the new model into its GitHub Copilot service.
The move represents a strategic effort to reduce reliance on external partners like OpenAI. This development allows Microsoft to compete directly with AI coding assistants from rivals such as Anthropic.
In-house AI development for coding and image creation offers Microsoft greater control over tool evolution and potential cost savings. Microsoft shares moved higher following the reports as investors reacted with optimism.