Microsoft’s first advanced reasoning AI is here
TL;DR
Microsoft announced a bunch of new in-house AI models at Build 2026, including a new "flagship" model: MAI-Thinking-1. It's an ambitious step into model development for Microsoft, which introduced its initial in-house models last year - before then, it had relied on OpenAI's models. The two companies recently renegotiated their deal to loosen ties. According to Microsoft, MAI-Thinking-1 is a "medium-sized model" that "matches leading models" on "key" software engineering benchmarks.
Nauti's Take
Promising: with MAI-Thinking-1, Microsoft is building its own reasoning muscle and loosening its dependence on OpenAI — more competition tends to mean better models and lower prices down the line. The catch: “matches leading models” is marketing speak until independent benchmarks confirm it, and “medium-sized” stays vague.
Teams already in the Microsoft ecosystem should take a look; anyone needing top-tier performance should wait for real-world tests.
Sources