GoKawiilJay Parikh, executive vice president of CoreAI at Microsoft, speaks at a Siemens news conference at the Consumer Electronics Show in Las Vegas on Jan. 6, 2026.
Microsoft is telling developers working on AI coding projects to rely on OpenAI's top-tier model over rival products as part of an effort to maximize efficiency.
"Internally, shifting more workloads to OpenAI models helps us get greater value from our token investment," Jay Parikh, executive vice president of Microsoft's CoreAI engineering group, wrote this week in a memo to employees that was viewed by CNBC. Tokens measure the scale of AI processing, with one token equal to about three-quarters of a word.
While Microsoft has built its own artificial intelligence programming model and gives cloud customers access to over 11,000 models, including from Anthropic, the company wants staffers to take advantage of valuable intellectual property rights that come from the software giant's early investment in OpenAI.
Parikh, whose group includes GitHub, Visual Studio and Visual Studio Code, told staffers to default to OpenAI's flagship GPT-5.6 Sol when working in the GitHub Copilot coding tool, and use that model most of the time. OpenAI released GPT-5.6 Sol in July.
Efficiency in AI spending is becoming increasingly important across corporate America after a brief era of so-called tokenmaxxing, when developers were encouraged to run up large token bills without worrying about their output.
A slew of open-weight models, largely out of China, have gained popularity because they're cheaper to access than the frontier models and allow users to tweak them and host their work on the infrastructure of their choice.
For the large hyperscalers, Wall Street is starting to demand more from their massive AI spending commitments, with capital expenditures from Microsoft, Amazon , Alphabet and Meta expected to top $700 billion collectively this year. Across the group, free cash flow dwindled in the latest quarter — and even went negative for Amazon and Alphabet. Microsoft's cash generation fell by 23% from a year earlier, a mild decrease compared to its peers.