A long-time investor in ChatGPT, Microsoft has decided to break out on its own and compete directly with the number one player in AI chat.
Microsoft’s opening move: The release of seven AI engines – or models – that together offer AI-powered image, voice, transcription and coding.
Observes Mustafa Suleyman, CEO, Microsoft AI: “Beyond these models, we’re building a super-intelligence lab – a system and an approach we believe will define the next phase of AI.”
In other news and analysis on AI writing:
*Microsoft Looking to Deep-Six Reliance on Anthropic: In a move designed to give new Microsoft AI more prominence, the company has announced that it’s looking to phase-out promotion of Anthropic AI on its systems.
Currently, Microsoft subscribers can use AI engines like Anthropic Claude, ChatGPT while working with Microsoft tools.
But Microsoft CEO Mustafa Suleyman says Microsoft is looking to significantly cut the price of AI for its customers by offering Microsoft alternatives — rather than imported solutions like Anthropic.
*Many U.S. Firms Saying Goodbye to U.S. AI in Favor of DeepSeek: Fed-up with relatively high prices for AI from major players like ChatGPT, Gemini and Claude, increasing numbers of U.S. businesses are using China-based AI alternatives from DeepSeek.
Observes writer Craig Hale: “DeepSeek is also a popular option because of its open-source approach. Companies can download, customize and deploy DeepSeek models on their own infrastructure — which helps to reduce dependency on external providers.”
One caveat: Many Chinese AI companies include terms of service that give the Chinese Communist Party access to company data shared with Chinese AI.
*AI Bubble Burst? Look for a Modest Correction Instead: Investors fearing that sky-high, AI-driven stock prices will lead the U.S. stock market off a cliff can take heart.
Joe Hipsky, a tech entrepreneur assures the trembling that the oft-predicted burst of the AI bubble will instead play out like a modest correction that will hurt few long-term.
Observes Hipsky: “The irony of this phase is that while the market (for AI services) may be cooling, the importance of AI is not diminishing. If anything, it is becoming more critical. The difference is that we are moving from experimentation to expectation.”
*ChatGPT’s One Billion Users: Currently, an Emphasis on Consumers: While ChatGPT’s maker OpenAI is increasing interested in attracting more business users, it’s the current the king of consumer users.
Observes writer Darius Popa: “ChatGPT owns the consumer mass market, while Claude is growing fast from a smaller base, with particular strength among developers and in coding.
“What a billion users buys OpenAI is distribution, the asset that turned earlier consumer-software winners into durable franchises.”
*ChatGPT Repackaging as ‘SuperApp’ for Business Users: In another move designed to portray itself as business-friendly, ChatGPT’s maker is creating a new look to portray the AI as a serious business tool.
Observes Crypto Briefing: “The goal is to transform ChatGPT into a ‘superapp,’ a single platform that bundles coding tools, AI agents, image generation and integrations with third-party services like Canva and Booking.com.
“Among the most notable additions is Codex, OpenAI’s coding tool, which will become a more prominent feature within the platform rather than a separate product.”
*Gemini Pulls Back on Draconian Usage Limits: Much to the relief of many Gemini users, maker Google has decided to ease-up on recently increased usage limits – which forced many users to settle for weaker Gemini AI after they’d maxed-out on usage credits for higher-end AI.
The newly reworked usage monitoring system will put a cap on how much ‘usage’ a single prompt will trigger when using Gemini 3.1 Pro, according to writer Kezia Jungco.
Plus, use of Gemini 3.1 Flash Lite – a much weaker version of Gemini AI – will now be free.
*Gartner: 40% of AI Agent Projects Will Be Deep-Sixed by Close of 2027: In another grim outlook for the ‘magic’ of AI agents, tech consultancy Gartner is predicting many test-drives of AI agents among corporate users are headed for the trash bin.
The reason: Despite promise, AI agents too often simply don’t deliver.
Writer Juras Jursenas details how that problem can be turned around in this piece.
*Major Newspaper Chain Goes All-In on AI-Generated Content: Just a few years ago, the idea of packaging AI-generated content as news was considered by nearly all news organizations as unthinkable.
Now, a major newspaper chain – McClatchy Media – has announced that AI-generated news will be the savior of its business.
Observes writer Mark Keierleber: “During a contentious, off-the-record virtual town hall last month, company executives touted a flood of AI-generated content as a key to solving their business woes — and pleaded with skeptical journalists to get on board.
“Taken together, the executives’ comments appeared to be a threat: Embrace AI or face consequences.”
*Stanford Study: Law Professors No Match for AI: New research from Stanford University finds AI is much better at the law than the professors who teach it.
Observes writer Stephanie Ashe: “In a blind evaluation of nearly 3,000 anonymized comparisons, professors rated AI responses significantly higher than answers written by other professors.”
In fact, AI’s answers to tough law questions were considered better than what law professors could come up with 75% of the time.
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–Joe Dysart is editor of RobotWritersAI.com and a tech journalist with 20+ years experience. His work has appeared in 150+ publications, including The New York Times and the Financial Times of London.