2 min read

Microsoft tells sales teams to take on OpenAI

Bloomberg reports Microsoft is urging sales staff to pitch its AI stack as cheaper and more complete than OpenAI and Anthropic.

Image: TechRadar

Microsoft is reportedly sharpening its sales pitch against OpenAI and Anthropic, telling sales staff to frame the company’s AI lineup as a cheaper, more effective end-to-end system rather than a collection of standalone models and tools.

According to Bloomberg, Microsoft wants customers to see its mix of internal models, third-party models, cloud infrastructure, applications, and security as better value than assembling those pieces separately. Jay Parikh, the company’s EVP, reportedly told employees:

“Everyone else is selling parts — we’re selling the full end-to-end system.”

Jay Parikh, EVP

Parikh added that this is “the story” Microsoft needs to tell in FY27, according to the report.

Recommended reading

AI sprawl is testing cloud lessons fast

The push also appears to reflect a broader shift in Microsoft’s AI strategy. While the company previously leaned heavily on its multibillion-dollar partnership with OpenAI, it has increasingly been rolling out more of its own models across apps and workflows, replacing some OpenAI and Anthropic technology.

Jacob Andreou, Copilot EVP, reportedly compared Copilot with Claude, saying Claude is slower, less accurate, and lacks some security integrations.

CEO Satya Nadella also pointed to Unilever as an example of the strategy in action. He said the company recently moved from an unnamed frontier model to one of Microsoft’s own lower-cost models, producing significant savings.

The timing matters: in April, Microsoft said its AI business was generating about $37 billion annually, up 123% year over year.

Marcus Vance

Enterprise Editor

Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.

via TechRadar

// Keep reading