Microsoft plans to unveil a large number of in-house AI models at its annual Build conference in San Francisco from June 2 to 3, The Information reported on May 28, citing sources familiar with internal matters.

Microsoft will first introduce a coding model aimed at boosting GitHub Copilot competitiveness, the report said.

GitHub Copilot has led the early AI coding market, but its position is seen as having weakened due to Cursor and Claude Code.

Microsoft will also announce models of different sizes specialised for tasks including text transformation, reasoning, voice and images.

Microsoft has so far used models from OpenAI and Anthropic for GitHub Copilot and Microsoft 365 Copilot. It can use OpenAI models for free until 2032, but it will need in-house AI models that do not rely on costly external suppliers after that, The Information said.

For the new models, Microsoft plans to stress that prices are lower even though performance is slightly below that of OpenAI and Anthropic, a source said.

As reliance on Anthropic models forced Microsoft to raise GitHub Copilot prices and limit usage, a cheaper in-house coding model could help it appeal to cost-sensitive developer customers.

Microsoft plans to sell the new models to developers through its Azure cloud. Microsoft is also deploying its own models in Copilot AI functions for Office apps to cut operating costs.