Microsoft Unveils Three New AI Models to Compete with Rivals

Microsoft has made a significant move in the AI space by releasing three new foundational AI models that can generate text, voice, and images. These models are designed to compete with rival AI labs, including Google and OpenAI.

Microsoft AI, the tech giant's research lab, announced the release of three foundational AI models on Thursday that can generate text, voice, and images. The release signals Microsoft’s continued push to build out its own stack of multimodal AI models — and compete with rival AI labs — even though it remains tied to OpenAI.

The three models are MAI-Transcribe-1, MAI-Voice-1, and MAI-Image-2. MAI-Transcribe-1 transcribes speech across 25 different languages into text and is 2.5 times faster than Microsoft's Azure Fast offering, according to a company press release. MAI-Voice-1 is an audio-generating model. This voice model allows users to generate 60 seconds of audio in one second and allows users to create a custom voice. MAI-Image-2 is a video-generating model.

The models were developed by Microsoft's MAI Superintelligence team, an AI research team led by Mustafa Suleyman, the CEO of Microsoft AI, that was formed and announced in November 2025.

"At Microsoft AI, we're building Humanist AI. We have a distinct view when creating our AI models — putting humans at the center, optimizing for how people actually communicate, training for practical use," Suleyman wrote in the blog post. "You'll see more models from us soon in Foundry and directly in Microsoft products and experiences."

One of the key selling points of these models is that they are cheaper than those from Google and OpenAI, the company wrote in the blog post.

The pricing for the models is as follows: MAI-Transcribe-1 starts at $0.36 per hour, MAI-Voice-1 starts at $22 per 1 million characters, and MAI-Image-2 starts at $5 for 1 million tokens for text input and $33 for 1 million tokens for image output.

Despite releasing its own models, Suleyman reaffirmed Microsoft's commitment to its partnership with OpenAI in an interview with VentureBeat — although a recent renegotiation of that partnership allowed Microsoft to truly pursue this superintelligence research, Suleyman told The Verge.

Microsoft has invested more than $13 billion into the AI research lab and hosts its models in its various products through a multi-year partnership. Microsoft takes the same stance with chips; it both produces its own and buys from outside players as well.

• Microsoft aims to make its AI models more accessible and affordable for developers and businesses.
• The release of these models is a significant move in the AI space, as it allows Microsoft to compete directly with rival AI labs.
• The models were developed by Microsoft's MAI Superintelligence team, led by Mustafa Suleyman, the CEO of Microsoft AI.

Microsoft's push into AI research and development is expected to continue in the coming years, with the company investing heavily in this area.

• Microsoft's AI research lab has invested more than $13 billion into AI research and development.
• The lab hosts its models in its various products through a multi-year partnership with OpenAI.
• Microsoft takes the same stance with chips; it both produces its own and buys from outside players as well.

Microsoft's move into AI research and development is expected to have a significant impact on the industry, as it allows the company to compete directly with rival AI labs and develop more advanced AI models.

• The release of these models is a significant move in the AI space, as it allows Microsoft to compete directly with rival AI labs.
• The models were developed by Microsoft's MAI Superintelligence team, led by Mustafa Suleyman, the CEO of Microsoft AI.
• Microsoft's push into AI research and development is expected to continue in the coming years, with the company investing heavily in this area.