Microsoft steps up AI rivalry, arms sales teams against OpenAI and Google

At an internal meeting, the discussion reportedly centred on promoting the efficiency and cost advantages of Microsoft’s in-house AI models.Microsoft has begun training its sales teams to position the company’s artificial intelligence (AI) offerings more aggressively against products from rivals including OpenAI, Anthropic and Google, according to a TechCrunch report citing Bloomberg.At an internal strategy meeting held on Tuesday ahead of the new fiscal year, company executives outlined plans for sales teams to draw direct comparisons between Microsoft’s AI portfolio and competing products.

The discussion reportedly centred on promoting the efficiency and cost advantages of Microsoft’s in-house AI models.‘Everyone else is selling parts — we’re selling the full end-to-end system.

That’s the story that we all need to get out there and tell in FY27,’ Executive Vice President Jay Parikh told employees, according to the Bloomberg report.Executive Vice President Jacob Andreou also reportedly compared Microsoft Copilot with Anthropic’s Claude chatbot during the session.

According to the report, Andreou said Anthropic’s model was ‘slower and less accurate, and lacked the proper security integrations’ when used within Microsoft’s Office applications.Shift in Microsoft’s AI positioningThe reported sales strategy reflects Microsoft’s evolving approach as it seeks to compete more directly with companies whose AI models have also powered several of its products.Earlier this month, another report said Microsoft had started replacing OpenAI and Anthropic models in flagship applications such as Word and Excel with its own AI models as part of a cost-saving initiative.Microsoft and OpenAI have shared a close partnership for several years, under which Microsoft provided funding and computing infrastructure in exchange for exclusive access to OpenAI’s APIs and models.However, the companies revised that agreement in April by removing the exclusivity clause, allowing OpenAI to offer its technology to Microsoft’s competitors.The updated partnership comes as Microsoft faces investor scrutiny over its significant spending on AI infrastructure.