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Makes sense Microsoft is placing it self as a model host and os providing open weight models for much cheaper on their infra already.

No wonder openai and anthropic are terrified

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Makes sense for Microsoft. Copilot is already capable of being model agnostic (both GH Copilot, obviously, and M365 as well). They're an enterprise software & services company, they want to sell integrated AI tooling in their stack, powered by whatever models their customers want rather than any specific model.

Models are quickly becoming a dumb pipe, like an ISP. Just a commodity. The labs should rightfully be terrified, eventually the value isn't going to come from the model itself but the tools & integrations built on top. Non-tech businesses and non-tech employees don't want to buy API access to a model, they want to buy off the shelf software with its capabilities packaged up into a pretty, easy to use GUI.

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I don't know about that, a lot of those bloated enterprise solutions are becoming obsolete fast, and integrations becoming a moot point as these models advance.
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Maybe for startups or simple orgs, but in any regulated industry/high compliance requirements they are still useful or outright required.

Claude Team w/ Cowork still only lets you set R/W permissions globally for each MCP connector for the whole team, they still don't offer config on a per-user basis. The enterprise controls are sorely lacking first party. Maybe fine for most startups or flat orgs, but any established enterprise with strong identity & access governance is going to have an issue with that. You can make it work, but you need to make your own agent/harness and give it an identity in Entra or whatever else you use, so for a non-tech company without a dev team, right back to square one of preferring to just buy a COTS solution vs trying to hand out direct model access with minimal governance.

(M365) Copilot sucks but Microsoft is putting a ton of work into agent governance & identity that sorely lacking elsewhere.

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