Rift with OpenAI: Microsoft Introduces Its Own Reasoning Model MAI-Thinking-1

A tectonic shift in the structure of technological monopolies. On June 3, 2026, at the Build conference, Microsoft dealt a crushing blow to its exclusive alliance with OpenAI by introducing **MAI-Thinking-1**—its first proprietary large model with advanced reasoning capabilities.

The product, developed by Mustafa Suleyman’s division (Microsoft AI), is aimed at direct competition with OpenAI’s o1 and o3 series. Concurrently, Satya Nadella announced the custom **Azure Cobalt 200** AI processor and the **Web IQ / Foundry IQ** agentic software stack. This release marks the complete sovereignization of Redmond's infrastructure. Microsoft has closed its own full-stack perimeter: from in-house silicon to sovereign models of reasoning and search context. OpenAI is de facto transformed from an irreplaceable ally into a common B2B supplier whose share in the Azure cloud ecosystem will begin to rapidly diminish.

Source: Microsoft / Reuters