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(Reuters) – Microsoft is training a new, in-house AI language model large enough to compete with those from Alphabet’s Google and OpenAI, The Information reported on Monday.

The new model, internally referred to as MAI-1, is being overseen by recently hired Mustafa Suleyman, the Google DeepMind Co-Founder and former CEO at AI startup Inflection, the report said, citing two Microsoft employees with knowledge of the effort.

The exact purpose of the model has not been determined yet and will depend on how well it performs. The tech giant could preview the new model as soon as its Build developer conference later this month, the report said.

Microsoft declined to comment when contacted by Reuters.

Microsoft Is Going Big After Phi-3-Mini

MAI-1 will be “far larger” than the previous smaller, open source models the company had previously trained which means it will be more expensive, according to the report.

The company last month previously launched a smaller artificial intelligence model called Phi-3-mini as it looks to attract a wider client base with cost-effective options. It has also  invested billions of dollars in OpenAI and deployed the ChatGPT maker’s technology across its suite of productivity software, allowing it to take an early lead in the generative AI race.

Microsoft has been setting aside large cluster of servers equipped with NVIDIA’s graphic processing units along with large amounts of data to improve the model, according to the report.

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