Microsoft to Integrate Anthropic’s AI Into Office Apps, Expanding Beyond OpenAI

Microsoft will soon bring Anthropic’s AI models into its Office 365 suite, including Word, Excel, Outlook, and PowerPoint, according to The Information. The move signals a shift away from Microsoft’s previous reliance on OpenAI alone to power its productivity tools.

The decision comes as tensions grow between the two longtime partners. OpenAI has been pursuing its own infrastructure projects and even developing a potential LinkedIn rival, raising questions about the exclusivity of its ties to Microsoft. At the same time, Microsoft is negotiating a renewed deal with OpenAI, which is restructuring its for-profit entity.

Insiders told The Information the Anthropic deal is not a bargaining tactic but a recognition of Claude Sonnet 4’s strengths, particularly in generating visually compelling PowerPoint slides. Microsoft leaders reportedly see the model as complementary to OpenAI’s offerings.

This isn’t Microsoft’s first step toward diversification. GitHub Copilot already provides access to models from Anthropic and xAI alongside OpenAI’s. Meanwhile, OpenAI is also diversifying, reducing its dependence on Microsoft's data center. Earlier this year, it was reported that OpenAI is turning to Google's TPUs to meet its compute needs.

Meanwhile, OpenAI is working with Broadcom to manufacture its own AI chips by 2026.