1328 ET - Microsoft's goal of releasing a new frontier artificial-intelligence model by 2027, as outlined by Microsoft AI CEO Mustafa Suleyman in an interview on X, represents a substantial shift in strategy, TD Cowen analysts write in a note. Most investors didn't seem to expect the company to go all-in on frontier research, the analysts write, but the move makes sense in the context of broader "co-opetition" as tech firms invest in model research and AI labs look to move into enterprise software. "With its own frontier model, MSFT will ease its reliance on these LLM partners and get full control of the AI intelligence layer, putting it in a stronger competitive positioning, against both the AI labs and GOOG who has a vertically integrated stack with Gemini," the analysts write. (elias.schisgall@wsj.com)
(END) Dow Jones Newswires
April 03, 2026 13:28 ET (17:28 GMT)
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