At Build 2026, Mustafa Suleyman finally revealed Microsoft’s AI moves

HIGHLIGHTS

Freed by new OpenAI deal, Mustafa Suleyman is truly leading Microsoft's frontier push

Build 2026 unveiled seven in-house MAI models, including reasoning model MAI-Thinking-1

Microsoft wants top-four lab status to finally make Copilot relevant

Mustafa Suleyman, Microsoft’s AI chief, represents one of the most fascinating characters of the current AI race in big tech. For close to two years, Suleyman has seemingly sat on the sidelines, when everyone from Sam Altman to Demis Hassabis have been in the spotlight. 

The CEO of Microsoft AI since March 2024, Suleyman has been biding his time to make an impact on the AI stage. At Build 2026, his gloves finally came off, and Suleyman threw punches at Microsoft’s competitors in the AI race in a way that revealed his priorities and vision better than ever before.

For those who don’t know, Suleyman is the co-founder of DeepMind, alongside Demis Hassabis. While Suleyman worked on building the company that gave us AlphaGo and AlphaFold, except it looked like Demis Hassabis walked away with all the credit and Nobel-winning glory. He left, worked at Google for a bit, founded Inflection AI, which got absorbed into Microsoft in a $650 million talent acquisition in March 2024.

And after a couple of years in the dugout, Mustafa Suleyman finds himself on the grand stage of today’s top AI movers and shakers. He’s the driving force behind everything related to AI that Microsoft unveiled and announced at Build 2026.

Build 2026 was the coming-out party for Microsoft’s MAI Superintelligence Team formed in November 2025 and headed by Suleyman himself. Thanks to this realignment, Microsoft unveiled seven fully in-house developed frontier AI models capable of processing everything from image, voice, transcription, reasoning, and coding.

This is a major departure for Microsoft, which thus far has spent the last three years as a glorified enterprise solution vehicle for OpenAI’s GPT models inside Word, Excel, Teams, GitHub and other Microsoft 365 apps. Microsoft’s first text-based reasoning model, the MAI-Thinking-1, has a trillion-parameter mixture-of-experts system with 35 billion active parameters and a 128,000-token context window. According to Suleyman, it’s on par with Anthropic’s Sonnet 4.6 for coding benchmarks. 

Suleyman also revealed a new image generator, which he thinks beats Google’s Nano Banana, along with a transcription model challenging Google’s Gemini and OpenAI. So what’s allowed Microsoft and Suleyman to do all of the AI stuff they’ve been cooking for the past few months?

In an interview with The Verge, Suleyman mentioned renegotiating Microsoft’s deal with OpenAI as the single biggest pivotal moment in Microsoft’s ability to forge their own AI destiny. Earlier, OpenAI’s terms of use prevented Microsoft from developing their own frontier models and chasing AGI. But the renegotiated deal allowed Microsoft and Suleyman to train models at scale, pursue their own road to superintelligence – with their own IP, no distillation from other models, and trained everything from scratch on their own data.

Also read: Microsoft Build 2026: New homegrown AI models, always-on agent, Project Solara and other key announcements

Furthermore, Suleyman told The Verge that his goal is to prove Microsoft can become one of the top four AI labs in the world, naming Google DeepMind, OpenAI, and Anthropic as the three that currently matter – humbly noting that Microsoft is “not one of them at the moment.” 

And before you get ahead of yourself with any sci-fi ideas, Suleyman insists that Microsoft is building AI that places humanity “at the top of the food chain.” Even if Microsoft may be laying off thousands of humans in that journey, but that’s for another article to dissect.

While Suleyman definitely impressed at Build 2026, it doesn’t take away from the fact that Microsoft’s Copilot AI offering has severely underwhelmed. The usage stats of Microsoft’s enterprise variant of Copilot is abysmal compared to ChatGPT. Hence, all the effort from Microsoft to train their own models on their own data, so eventually Copilot feels like its own product – not a rebranded ChatGPT with Microsoft’s logo. And at Build 2026, we saw the first real evidence that Suleyman intends to deliver on that promise.

Jayesh Shinde

Executive Editor at Digit. Technology journalist since Jan 2008, with stints at Indiatimes.com and PCWorld.in. Enthusiastic dad, reluctant traveler, weekend gamer, LOTR nerd, pseudo bon vivant.

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