Microsoft instructs sales team to disparage rivals in push for proprietary AI dominance
Executives direct personnel to highlight cost advantages and security integrations of in-house models over competitors like OpenAI and Anthropic.
Microsoft has reportedly directed its sales personnel to actively disparage artificial intelligence models developed by competitors, including OpenAI, Google, and Anthropic. During an internal strategy session for the new fiscal year held on Tuesday, executives emphasised the efficiency and cost-effectiveness of the company’s proprietary systems, marking a significant shift in how the technology giant positions its AI offerings in the market.
Executive Vice President Jay Parikh reportedly framed the company’s new approach as a move away from selling isolated components. “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,” Parikh told the room, according to a report from Bloomberg. The directive aims to consolidate Microsoft’s value proposition by promoting its integrated ecosystem over standalone AI tools.
The sales training coincides with broader operational changes, including reports that Microsoft has been replacing rival models in flagship applications such as Word and Excel with its own systems. Executive Vice President Jacob Andreou reportedly presented data during the session claiming that Anthropic’s Claude model was slower and less accurate than Microsoft’s Copilot when used within office applications, while also lacking adequate security integrations.
This strategic pivot follows a revision to Microsoft’s partnership with OpenAI in April, which removed exclusivity clauses that previously prevented OpenAI from selling its technology to Microsoft’s competitors. The amendment ended a unique arrangement where Microsoft provided capital and compute resources in exchange for exclusive access to OpenAI’s API and models, allowing OpenAI to engage with rival firms.
The move also comes amid ongoing investor scrutiny regarding Microsoft’s substantial expenditures on AI infrastructure and its stock performance over the past year. By positioning its in-house models as more efficient and secure, the company appears to be seeking to bolster confidence in its long-term AI strategy and justify its heavy investment in the sector. TechCrunch has contacted Microsoft and Anthropic for comment, but no response was received at the time of reporting.
