Simon Willison on Microsoft's new MAI models
Simon Willison covers Microsoft's release of new MAI (Microsoft AI) models. The post is commentary from a tier-2 source on a Microsoft model announcement, likely summarizing capabilities and context. Microsoft's MAI model line represents the company's continued push to develop proprietary frontier models alongside its OpenAI partnership.
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Microsoft Build recap: MAI-Thinking-1 and MAI Family models announced
Microsoft unveiled MAI-Thinking-1 and the broader MAI family of models at Microsoft Build 2026, as covered in the Latent Space AINews recap. The announcement represents Microsoft's push into frontier reasoning models under its own brand, distinct from its OpenAI partnership. Technical details of the MAI model family are discussed, signaling a significant strategic move toward Microsoft-native AI model development.
Microsoft Build: Seven in-house AI models, GitHub Copilot desktop agent manager, and Web IQ search API for agents
Microsoft announced seven new AI models trained from scratch (not distilled from OpenAI), including the flagship MAI-Thinking-1 reasoning model and MAI-Transcribe-1.5, plus a 'Frontier Tuning' reinforcement learning approach for enterprise workflow training. GitHub released a desktop Copilot app designed to manage multiple parallel AI agents with isolated git worktrees and bidirectional canvases. Microsoft also launched Web IQ, an agent-native Bing-powered grounding API already powering search in Copilot and ChatGPT, running 2.5x faster than alternatives with lower token costs. The roundup also covers Nous Research's Hermes Desktop cross-platform agent app, Alibaba's Qwen3.7-Plus multimodal model, and OpenAI's role-specific Codex plugins.
Data Points: OpenAI and Microsoft sever their exclusive relationship
This edition of The Batch covers several major AI industry developments: OpenAI has revised its partnership with Microsoft, ending exclusivity while retaining Microsoft as primary cloud partner through 2032 and gaining freedom to deploy on AWS and Google Cloud. DeepSeek released V4 model weights featuring 1M-token context and Huawei Ascend chip optimization, though it trails leading open and closed models on aggregate benchmarks. Google and Amazon are deepening investments in Anthropic with up to $40B and $25B respectively in funding-for-compute deals, and an agentic AI system autonomously designed a functional RISC-V CPU from a 219-word spec in 12 hours.
OpenAI and Microsoft Sign New MOU Reinforcing Partnership
OpenAI and Microsoft have signed a new Memorandum of Understanding, reaffirming their strategic partnership with stated commitments to AI safety and innovation. The announcement comes from OpenAI's official blog and signals a formal continuation or restructuring of their existing relationship. The body of the announcement is brief and lacks technical or financial specifics.
Data Points: China Blocks Meta-Manus Deal; Microsoft-OpenAI Restructure; Nvidia Nemotron Omni; Grok 4.3; OpenAI AGI Principles; IBM Granite 4.1
A roundup of major AI developments: Chinese regulators blocked Meta's acquisition of Singapore-based agent startup Manus on security grounds; Microsoft and OpenAI restructured their partnership, with OpenAI gaining freedom to sell on rival clouds while Microsoft loses its AGI-access clause; Nvidia released Nemotron 3 Nano Omni, a 30B MoE omnimodal open-weights model for local agent deployment; xAI shipped Grok 4.3 with a 1M-token context window at reduced pricing; OpenAI published AGI operating principles; and IBM released Granite 4.1 across language, vision, speech, embedding, and safety modalities.
MiniMax M2.7 proprietary reasoning model competes with Gemini and Claude Opus; roundup covers Cursor Composer 2, MAI-Image-2, Claude Code Channels, and Anthropic defense dispute
MiniMax released M2.7, a proprietary reasoning model that achieved 66.6% on MLE Bench Lite (tying Gemini 3.1) and 56.22% on SWE-Pro, priced at $0.30/$1.20 per million tokens, with the shift to proprietary marking a potential strategic pivot among Chinese AI labs away from open weights. Cursor released Composer 2, an agentic coding model built on a fine-tuned Kimi 2.5 (via Moonshot partnership), priced 86% cheaper than its predecessor and scoring 73.7 on SWE-bench Multilingual. Anthropic released Claude Code Channels, routing Telegram and Discord messages into local Claude Code sessions via MCP plugins, and separately filed a court response denying it has any backdoor or kill switch into military deployments of Claude. Microsoft announced MAI-Image-2, a text-to-image model ranking third on Arena.ai among research labs.
Microsoft Invests $1 Billion in OpenAI, Becomes Exclusive Cloud Provider
Microsoft announced a $1 billion investment in OpenAI in July 2019, establishing a strategic partnership aimed at building AGI with broadly distributed economic benefits. As part of the deal, Microsoft becomes OpenAI's exclusive cloud provider, and the two companies will jointly develop Azure AI supercomputing infrastructure. This partnership laid the foundation for OpenAI's large-scale model training on Azure and subsequent deeper integrations between the two organizations.
Data Points: DeepSWE Benchmark, DeepSeek V4 Price Cuts, MAI-Image-2.5, Mythos Security Findings, MCP Stateless Update
This edition of The Batch covers five distinct AI developments: Datacurve's DeepSWE benchmark claims to fix critical grading flaws in SWE-bench Pro with hand-written verifiers and harder tasks; DeepSeek permanently cuts V4 Pro prices by 75%; Microsoft's MAI-Image-2.5 debuts third on the Arena leaderboard; Anthropic's Claude Mythos Preview found over 10,000 high/critical vulnerabilities in the first month of Project Glasswing, with remediation badly lagging discovery; and the Model Context Protocol proposes removing stateful sessions to enable stateless, load-balanced remote servers. Each item reflects meaningful movement in evaluation methodology, inference economics, multimodal generation, AI-assisted security, and agent tooling infrastructure.