TechCrunch Desktop Logo

TechCrunch Mobile Logo

Topics

Latest

Latest

AI

AI

Amazon

Amazon

Apps

Apps

Biotech & Health

Biotech & Health

Climate

Climate

Cloud Computing

Cloud Computing

Commerce

Commerce

Crypto

Crypto

Enterprise

Enterprise

EVs

EVs

Fintech

Fintech

Fundraising

Fundraising

Gadgets

Gadgets

Gaming

Gaming

Google

Google

Government & Policy

Government & Policy

Hardware

Hardware

Instagram

Instagram

Layoffs

Layoffs

Media & Entertainment

Media & Entertainment

Meta

Meta

Microsoft

Microsoft

Privacy

Privacy

Robotics

Robotics

Security

Security

Social

Social

Space

Space

Startups

Startups

TikTok

TikTok

Transportation

Transportation

Venture

Venture

More from TechCrunch

Staff

Staff

Events

Events

Startup Battlefield

Startup Battlefield

StrictlyVC

StrictlyVC

Newsletters

Newsletters

Podcasts

Podcasts

Videos

Videos

Partner Content

Partner Content

TechCrunch Brand Studio

TechCrunch Brand Studio

Crunchboard

Crunchboard

Contact Us

Contact Us

AI

Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic

Lucas Ropek

Microsoft appears to be prepping its sales team to get more competitive with the other major players in the AI industry.

At an internal meeting on Tuesday, the company’s executives outlined a plan for salespeople to negatively compare AI products from companies like OpenAI, Google, and Anthropic to its own, according to a new report from Bloomberg. The meeting, billed as a strategy session for the new fiscal year, reportedly leaned heavily on pitching the efficiency and cost-effectiveness of Microsoft’s in-house models against those of its rivals.

new report

“Everyone else is selling parts — we’re selling the full end-to-end system. That’s the story that we all need to get out there and tell in FY27,” Executive Vice President Jay Parikh reportedly told the room.

Copilot executive vice president Jacob Andreou reportedly went further, delivering a presentation comparing Copilot directly to Anthropic’s chatbot Claude. According to Bloomberg, Andreou noted that, when it came to performance within Microsoft’s office apps, Anthropic’s model was “slower and less accurate, and lacked the proper security integrations.”

TechCrunch has reached out to Microsoft and Anthropic for comment and will update this story if we hear from either outfit.

A company coaching its sales team on how to trash-talk competitors isn’t particularly surprising. What’s more notable is who Microsoft is now targeting — the same companies it has long depended on for the AI models powering its own products.

It’s just the latest move in that direction. A report earlier this month found that Microsoft has been swapping OpenAI’s and Anthropic’s models out of flagship apps like Word and Excel in favor of its own — a cost-cutting move, according to that report.

report

There was a time when Microsoft and OpenAI were attached at the hip. The two companies entered into a very unique agreement years ago that saw Microsoft provide capital and compute to OpenAI while allowing Microsoft to enjoy exclusive access to OpenAI’s API and models. The companies amended the partnership in April, dropping the exclusivity clause and clearing OpenAI to sell to Microsoft’s competitors.

amended

That revised relationship may help explain the sales team’s new pitch. Microsoft has been battling a less-than-optimal stock outlook over the past year, as investors question the company’s massive spending on the buildout of its AI business. Talking up how competitive those products actually are is likely an attempt to calm those waters and build confidence in Microsoft’s long-term AI plan.

less-than-optimal

buildout of its AI business

Topics

AI

Anthropic

Microsoft

OpenAI

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

we may earn a small commission

Lucas Ropek

Senior Writer, TechCrunch

View Bio

Event Logo

Last chance to save up to $190 on TechCrunch Founder Summit. Join 1,000+ founders and VCs at all stages for real-world scaling insights and connections that move the needle.Savings end June 26, 11:59 p.m. PT.

REGISTER NOW

Most Popular

Anthropic’s newest ad is creeping people out

Lucas Ropek

Anthropic’s newest ad is creeping people out

Anthropic’s newest ad is creeping people out

Anthropic’s newest ad is creeping people out

Lucas Ropek

Lucas Ropek

Satya Nadella has issued a shocking warning to companies using AI

Julie Bort

Satya Nadella has issued a shocking warning to companies using AI

Satya Nadella has issued a shocking warning to companies using AI

Satya Nadella has issued a shocking warning to companies using AI

Julie Bort

Julie Bort

The wildest allegations in Apple’s trade secrets lawsuit against OpenAI

Sarah Perez

The wildest allegations in Apple’s trade secrets lawsuit against OpenAI

The wildest allegations in Apple’s trade secrets lawsuit against OpenAI

The wildest allegations in Apple’s trade secrets lawsuit against OpenAI

Sarah Perez

Sarah Perez

Anthropic starts localizing Claude pricing for India, its biggest market after the US

Jagmeet Singh

Anthropic starts localizing Claude pricing for India, its biggest market after the US

Anthropic starts localizing Claude pricing for India, its biggest market after the US

Anthropic starts localizing Claude pricing for India, its biggest market after the US

Jagmeet Singh

Jagmeet Singh

Meta removes controversial AI feature on Instagram after backlash

Lucas Ropek

Meta removes controversial AI feature on Instagram after backlash

Meta removes controversial AI feature on Instagram after backlash

Meta removes controversial AI feature on Instagram after backlash

Lucas Ropek

Lucas Ropek

Apple sues OpenAI over alleged trade secret theft

Sarah Perez

Apple sues OpenAI over alleged trade secret theft

Apple sues OpenAI over alleged trade secret theft

Apple sues OpenAI over alleged trade secret theft

Sarah Perez

Sarah Perez

Instagram users: Here’s how to stop Meta’s AI from using your photos

Lauren Forristal

Instagram users: Here’s how to stop Meta’s AI from using your photos

Instagram users: Here’s how to stop Meta’s AI from using your photos

Instagram users: Here’s how to stop Meta’s AI from using your photos

Lauren Forristal

Lauren Forristal