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Microsoft AI announced a new large language model, MAI-Base-2, claiming it outperforms the OpenAI model behind GPT 5.6 Sol while using far less compute. The model is not fully open, but will be licensed to select partners.
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Microsoft on October 12 unveiled Azure Maia 300, its third-generation in-house AI accelerator. The inference-focused chip promises 40% more tokens per megawatt than leading GPU systems, with production deployments starting in 2027.
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On October 9, Microsoft released Decision-1, a scoring model for structured decisions. It writes no text — it picks the best option from a given set and returns probability scores. Built on Alibaba's Qwen3.5-9B, input costs $0.042 per million tokens, output is free. The decision-model track that startups heated up last month now has Microsoft, OpenAI, and Cloudflare all in.
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Microsoft will hold an event in San Francisco at 1 AM Beijing time on October 8, with CEO Satya Nadella and NVIDIA CEO Jensen Huang sharing the stage to unveil the Surface Laptop Ultra powered by the RTX Spark chip — up to 128GB of unified memory, capable of running 120B-parameter models locally. Microsoft wants to move AI agents from the cloud back onto local devices.