AI TRENDS | Microsoft Studies Using Fine-Tuned DeepSeek V4 to Replace Anthropic, OpenAI in Copilot Cowork

Microsoft is studying using a fine-tuned version of DeepSeek V4, or other open-source models, to replace Anthropic and OpenAI models supporting its AI agent tool Copilot Cowork to cut operating costs, according to Ming Pao, citing Axios. The report came as Reuters said the U.S. Department of Commerce has paused adding DeepSeek and more than 100 Chinese technology companies to a national security blacklist. Microsoft executive Charles Lamanna previously said tests showed existing AI model options could not support unlimited service, and the company is preparing to shift from a fixed pricing model to usage-based billing that charges users by token.