Microsoft will release its self-developed programming model next week to counter Cursor and Claude's encroachment on Copilot.

According to Beating, Microsoft plans to release several self-developed AI models at its annual Build developer conference in San Francisco next week. To reclaim the AI coding market share eroded by competitors, Microsoft is focusing on launching its self-developed programming models to enhance the competitiveness of GitHub Copilot and counter the market encroachment brought by Cursor and Claude Code. In addition to programming models, Microsoft is also planning to launch self-developed large models with various parameter specifications, covering vertical tasks such as transcription, reasoning, speech, and image processing. The research team under Microsoft AI CEO Mustafa Suleyman has not had a model reach the top of mainstream industry leaderboards in the past two years; this release will be the first major test of the team's self-developed capabilities. Previously, due to an exclusive agreement with OpenAI restricting Microsoft's rights to develop human-level AI until April 2026, its self-development work was once limited; it wasn't until April of this year, when the two companies revised their cooperation terms, that Microsoft regained its research freedom. In its software services, Microsoft has long relied on OpenAI's technology, which is licensed free of charge until 2032, and the Anthropic model, which it purchased for a fee, to power GitHub Copilot and 365 Copilot. The high cost of external procurement has forced Microsoft to raise the price of some GitHub Copilot packages and impose quotas on the use of the Anthropic model. By distributing lower-cost, self-developed models through the Azure cloud platform, Microsoft can provide developers with a cheaper alternative to Claude, thereby reducing the daily operating costs of AI features in Office software. More importantly, when the free license for OpenAI expires in about six years, self-developed large models will become a key asset for Microsoft to break free from expensive suppliers and maintain its core independence.