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Microsoft launches ‘mid-class’ AI model as compute limits bite

Tech giant’s AI chief says it will have the resources to build frontier systems later this year

Microsoft has unveiled its latest midsized model as it seeks to gain a foothold in the sector, but AI chief Mustafa Suleyman said the tech giant still lacks the computing power needed to build cutting-edge systems.

The software giant on Thursday released a speech transcription model that Suleyman called the most advanced of its kind, as it steps up efforts to close in on rivals and reduce its reliance on OpenAI.

Microsoft has yet to release large language models capable of competing in more sophisticated areas such as coding and text generation, where it lags market leaders Anthropic, Google and OpenAI.

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