Microsoft Considers DeepSeek Models Over OpenAI to Reduce Costs

Microsoft Considers DeepSeek Models Over OpenAI to Reduce Costs

Intense competition in the AI market and the rising cost of computing power are forcing tech giants to seek more economical solutions. Microsoft is considering switching from OpenAI and Anthropic models to China's DeepSeek V4 for its Copilot Cowork service. This move aims not only to optimize costs but also to make AI services accessible to a wider audience. This is reported by Ixbt.com news reports.

Charles Lamanna, Microsoft's Corporate Vice President for Copilot, Agents, and Platforms, emphasized in an interview with Axios that intensive AI usage leads to a sharp increase in costs. Currently, Copilot systems rely primarily on high-priced GPT-4 and other advanced models. However, as the number of users grows, maintaining profitability is becoming more difficult.

Balance of Cost-Efficiency and Performance

Microsoft plans to launch a more affordable version of Copilot Cowork in the coming weeks. Although the company has not officially confirmed which model it will use, experts point to the DeepSeek V4 model as the primary candidate. This model stands out for its high performance and being several times cheaper than its competitors.

The DeepSeek startup recently announced a 75 percent price reduction for its flagship V4-Pro model. This has made it one of the most attractive solutions on the market. Such pricing policy can be decisive, especially when creating AI agents for corporate clients. According to data, as of June 2026, DeepSeek was found to be the fastest-growing software provider in the corporate AI services category.

Geopolitical Situation and Market Outlook

Interestingly, the US government has so far refrained from adding the DeepSeek startup to the list of companies posing a national security threat (blacklist). This allows American companies like Microsoft to legally use this technology. Experts believe that if Microsoft successfully implements this transition, other tech giants will also start focusing on cheaper alternative models.

In conclusion, Microsoft's strategy aims for the following goals:

  • Expanding user reach by lowering the price of the Copilot service;
  • Reducing dependence on providers such as OpenAI and Anthropic;
  • Maintaining high profitability in the AI agents market;
  • Attracting corporate clients through competitive pricing.
If this plan is implemented, the AI market will enter a new stage — where not only the power of the technology but also its economic efficiency will come to the forefront.

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