Microsoft Is Replacing OpenAI and Anthropic Models with Its Own AI to Cut Copilot Costs

Microsoft has reportedly been phasing out the OpenAI and Anthropic models used in its AI assistant Copilot in favor of its own in-house AI models, with cost reduction cited as the primary goal.

According to Bloomberg, Microsoft has already begun deploying its own AI models in some applications. The company has long relied on OpenAI's GPT series as the core of Copilot, but enormous API costs have become a challenge. The Decoder also reports that Microsoft explicitly cites "cost reduction" as a stated objective.

While maintaining its investment relationship with OpenAI, Microsoft's move toward in-house AI to curb infrastructure costs could reshape the balance of power among platform providers.

Meta Releases "Muse Image," Its First Image Generation Model Since AI Lab Overhaul

Meta Platforms has started offering its new image generation AI model, Muse Image, within its Meta AI chatbot. This marks the company's first image generation model release since bringing on Alexandr Wang as Chief AI Officer and pouring massive investment into its AI lab.

Muse Image is available in the Meta AI chatbot and on Instagram, and Meta is expected to roll the model out to more of its products going forward.

Anthropic's Claude Cowork Adds Mobile and Web Support; Fable 5 Subscription Offering Extended

Anthropic has launched mobile and web versions of its AI agent, Claude Cowork. Previously the service was mainly used on desktop, but the expansion now makes it possible to do Claude-powered agent work on the go.

The company also announced on July 7 (local time) that the subscription offering period for its flagship model, Claude Fable 5, has been extended until July 12 at 11:59 PM Pacific Time — which is July 13 at 3:59 PM Japan Time. The extension of a few days beyond the original end date points to strong demand.

Former Tesla Scientist Unveils European Humanoid Robot Startup "UMA"

Rémi Cadene, who worked on the development of Tesla's humanoid robot Optimus, has founded a Paris-based startup called UMA and announced plans to build lightweight humanoid robots.

According to Cadene (CEO and co-founder), UMA's robots are intended for use in manufacturing plants, logistics warehouses, and homes. As a Europe-based humanoid robotics company, UMA aims to enter the market with an approach that differs from U.S. players such as Figure AI, Tesla, and Apptronik.

U.S. Electricity Consumption to Hit Record Highs in 2026–2027 on Rising AI Demand, EIA Forecasts

The U.S. Energy Information Administration (EIA) has forecast that a surge in AI usage will drive U.S. electricity consumption to record highs in both 2026 and 2027.

Growing data center demand is the main driver, with the computing infrastructure required for AI model training and inference in particular pushing up electricity demand. The expansion of power infrastructure is expected to draw even more attention as a bottleneck that could constrain the growth of the AI industry.

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