Microsoft will cover the costs to integrate Anthropic's AI technology into Office 365 applications, according to The Information, which cited two sources. This move implies that Anthropic's technology will work alongside OpenAI's to power new features in Word, Excel, Outlook, and PowerPoint, signaling Microsoft's shift away from relying solely on the maker of ChatGPT for its productivity suite.

This diversification of AI partnerships comes at a time when tensions between Microsoft and OpenAI are escalating, as the latter pushes forward with its own infrastructure initiatives and a potential rival to LinkedIn.

The deal with Anthropic occurs while Microsoft is negotiating a new agreement with OpenAI to ensure continued access to its AI models following a planned profit-oriented restructuring. However, The Information clarifies that this action is not a bargaining tactic. Microsoft's leadership believes that Anthropic's latest models—particularly Claude Sonnet 4—outperform OpenAI's in certain areas, such as generating visually appealing PowerPoint presentations.

Meanwhile, OpenAI is also working to reduce its dependence on Microsoft. Last week, OpenAI launched a recruitment platform to compete with Microsoft’s LinkedIn, and according to the Financial Times, it plans to begin mass production of its first AI chip by 2026 in collaboration with Broadcom. This development would allow OpenAI to conduct training and inference on hardware it controls, reducing its reliance on Microsoft's Azure platform.