TLDR
- Microsoft launched MAI-Code-1 to generate source code from written claims.
- MAI-Code-1 is available through GitHub Copilot and Visual Studio Code.
- Microsoft introduced MAI-Thinking-1 as a logical model focused on low token costs.
- MAI-Thinking-1 is available in private preview through Microsoft Foundry.
- Microsoft is building more internal AI models as it continues to partner with OpenAI and Anthropic.
Microsoft used its Build conference in San Francisco to introduce new internal AI models to developers. Company Fired MAI-Code-1 for software generation and MAI-Thinking-1 for thinking tasks.
Microsoft is entering the AI coding space with MAI-Code-1
MAI-Code-1 converts written prompts into source code for applications and websites. Microsoft introduced this model with the growing demand for script development tools. Developers now use natural language prompts to create code, interfaces, and core products. This practice has gained attention under the rubric of “biocoding.”
Microsoft has placed MAI-Code-1 inside GitHub Copilot and Visual Studio Code. This gives the coding model direct access to the company’s developer user base. Kyle Daigle, Microsoft’s developer marketing lead and GitHub chief operating officer, described the model as “super-efficient heuristics.”
The company used this point to highlight the lower operating requirements. The new model also gives Microsoft More control over AI coding costs. A company can run its models on Azure instead of paying external model providers.
MAI-Thinking-1 targets thinking at lower nominal costs
Microsoft also introduced MAI-Thinking-1, a thinking model designed for performance and cost control. The company positioned the model as medium-sized and efficient. Daigle wrote that MAI-Thinking-1 was “designed for high efficiency and performance.” He added that it works at a “low nominal cost.”
Developers use tokens to pay for the input and output of the AI model. Therefore, lower token costs can reduce spending for companies running large workloads. MAI-Thinking-1 has entered private preview through Microsoft Foundry.
The service helps customers integrate AI models into software applications. Customers can register interest before Microsoft makes the inference model widely available. The company has not provided a full release date for wider access.
Microsoft is building more of its AI stack
Microsoft has invested heavily in leading AI companies while building its own systems. The company has committed $13 billion to OpenAI and $5 billion to Anthropic. It also offers OpenAI and Anthropic models through Azure cloud services. However, its new models give developers another path within Microsoft’s ecosystem.
The company’s strategy comes as OpenAI and Anthropic pursue their public market plans. As we reported, Anthropic It filed confidentially for an initial public offering on Monday. OpenAI also explored a potential bid this year, according to the report. Both companies have posted strong growth during the current AI cycle.
Microsoft faces competition from Google, which released Gemini 3.5 Flash in May. Google designed this model for programming and other tasks within its data centers. At Build, Microsoft also announced updated cloud models for speech recognition and synthetic voice generation. It also revealed updates to image creation and Aion mini-forms for Windows PCs.
