Why is Microsoft Obsessed with OpenAI?

Microsoft has integrated OpenAI’s artificial intelligence into almost every key product. Windows 11, Microsoft 365, GitHub, and the all use OpenAI’s technology. A prominent example is Copilot, its AI assistant embedded within these platforms, making tasks easier for users by assisting with writing, coding, and organizing data. Copilot’s success has attracted over 100 million monthly active users, further locking customers into the company’s ecosystem.
During the Microsoft Build Conference 2025, the company revealed more built upon OpenAI’s newest model, GPT-5. Microsoft announced a new feature called “Smart Mode,” allowing Copilot to automatically switch between different AI models based on user needs. This seamless integration helps the company maintain its competitive edge by enhancing the user experience.