Microsoft plans to unveil homegrown AI models at Build, including a cheaper coding model for GitHub Copilot

Microsoft is planning multiple releases next week at BUILD, a new model class in multiple sizes, a coding specialized model, a new agent built in-house, and a new reasoning specialized model, per reporting by The Information.

@AndrewCurran_ They had the biggest chance to be the stars of this age, but they’ve been a real disappointment so far. They can still turn it around though; it’s not too late.

@AndrewCurran_ oooh

@AlmarionAI Three years ago I thought they would be dominating by now.

The pricing detail buried in that report is the whole story. Microsoft was buying Claude through the direct developer channel, which our Week 20 index puts at $0.0171 per 1K output tokens. The same class of capability on third party inference platforms runs about 80% below that, and on neoclouds closer to 96% below. When your product is built on the single most expensive channel in the market, you either raise prices and cap usage, as Microsoft did with Copilot, or you build your own models to escape it. Both are happening at once.