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.
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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.
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.
Introducing OpenAI o1
OpenAI announced o1, a new series of AI models designed to spend more time 'thinking' before responding, using chain-of-thought reasoning to tackle complex problems in science, coding, and mathematics. The o1-preview and o1-mini models are being released, with o1-preview representing the most capable version and o1-mini offering a faster, cheaper alternative optimized for coding and reasoning tasks. OpenAI claims o1-preview ranks in the 89th percentile on competitive programming problems and performs at a PhD level on science benchmarks. This release marks a significant shift in OpenAI's approach to scaling, moving from purely training-time compute to inference-time compute as a new axis of capability improvement.
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: 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.
Data Points: Thinking Machines Interaction Model, ERNIE 5.1, Co-Mathematician, RL Conductor, and More
This edition of The Batch covers five notable AI developments: Thinking Machines' research preview of an 'interaction model' with a 200ms micro-turn multimodal architecture; Baidu's ERNIE 5.1, a compressed derivative of ERNIE 5.0 using only 6% of typical pre-training compute; Google DeepMind's Co-Mathematician collaborative workbench reaching 48% on FrontierMath Tier 4; a 7B RL Conductor model that orchestrates multi-agent workflows via reinforcement learning; and Google's Magic Pointer cursor system powered by Gemini. Secondary items include GitHub Copilot pricing restructuring ahead of usage-based billing.