Mustafa Suleyman has identified Microsoft’s biggest AI competitor, and it is not OpenAI. “Anthropic is extremely expensive and I think many people are urgently looking for alternatives,” the head of Microsoft’s in-house model effort told Bloomberg in an interview.
The statement is more than competitive positioning. It is a declaration of intent. “We pay a lot of money to Anthropic, so our goal is to reduce and ultimately eliminate that cost,” Suleyman said.
To back it up, Microsoft this week announced seven new in-house AI models at its annual Build conference for developers, including MAI-Thinking-1, a reasoning model it says matches Anthropic’s Claude Opus 4.6 on a widely used coding benchmark at a lower price point.
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For Microsoft, which uses enormous quantities of AI tokens across Copilot and its own engineering teams, the cost question is existential. “Many, many people in our organisation are spending millions of dollars” on AI tokens, Suleyman said. Building cheaper in-house alternatives is not just a competitive move against external providers. It is a way to protect Microsoft’s own margins.
After refining its models for consulting firm McKinsey, Microsoft claims it was able to outperform OpenAI’s GPT 5-5 with 10 times better cost efficiency, according to Suleyman. The company has also been talking with Adobe about using the in-house models, Bloomberg reported.
From contractually bound to building its own
Until late 2025, Microsoft was contractually prohibited from independently pursuing frontier AI development under its partnership with OpenAI. A renegotiated agreement freed the company to build competing models while retaining licence rights to everything OpenAI builds through 2032.
That clock is now ticking. Suleyman’s MAI Superintelligence team, formed in November 2025, has shipped its first public models within six months. For a company with virtually no track record in frontier model development, the pace is aggressive but the gap remains real.
Suleyman was candid about that. “We’ve closed an enormous gap in six months,” he told Benzinga, while acknowledging that Anthropic has released two more advanced models since Opus 4.6, giving it a lead of several months.
Why Anthropic, not OpenAI
The strategic calculus is revealing. Microsoft retains discounted access to OpenAI’s models through 2032. It does not have a comparable arrangement with Anthropic. That makes Anthropic the more expensive dependency, and the one Suleyman can most directly address by building in-house alternatives.
There is also a competitive logic. Anthropic’s Claude models have become the default choice for enterprise AI coding tools, and the company is preparing an IPO that could value it above $1 trillion. If Microsoft can offer comparable performance at lower cost, bundled with the Azure infrastructure its enterprise customers already use, it undercuts the case for buying Anthropic separately.
Whether Microsoft’s models can actually match Anthropic’s latest generation, rather than a prior one, is the question Suleyman’s seven new models do not yet answer. Matching Opus 4.6 on a benchmark is a credible starting point. But Anthropic has already moved past it, and in a market where the frontier shifts every few months, catching up and staying there are very different problems.
It’s been several months since Samsung launched its Galaxy S26 series of phones, so now that the dust has settled, I’m reevaluating them against the industry’s best. That starts with the flagship Galaxy S26 Ultra.
Between it and the best iPhone available, the iPhone 17 Pro Max, you might be wondering which one is the better investment. The easy answer is, “Stick with whichever OS you have now,” but in all honesty, both phones are good enough to justify a switch. If you’re going to go, go big! It doesn’t get much bigger than these two powerhouses, so let’s dive in and see which one is the winner.
As it happens, I carry the iPhone 17 Pro Max, and also the latest Android phone, and it doesn’t get much more “latest” than the S26 Ultra, so these opinions are based on prior experience with the S25 Ultra, a good amount of hands-on review time with the S26 Ultra, and the specs we have on hand.
You should buy the iPhone 17 Pro Max if…
Jason Hiner/ZDNET
1. You (or your family) are in the Apple ecosystem
Platform lock-in is a thing, and Apple has it better than most. Apple provides an entire ecosystem of devices and cross-device functionality that most other OEMs can’t match. It’s not that Samsung doesn’t have an ecosystem of its own, but Apple’s devices are designed from the ground up to work together. They’re on a level of detail that other ecosystems — including Samsung’s — can’t really compete with.
Then, there’s the 800-pound gorilla in the room. If your family is also in the Apple ecosystem, there’s even more reason to stay there. One of the reasons I carry an iPhone everywhere is that my kids also have iPhones. “Dad, can you ring my phone?” is a common refrain in my house. Add iMessage and parental controls to that, and there are enough roadblocks to make not carrying an iPhone a pretty big headache.
There are software workarounds for just about everything an iPhone can do with other devices, but they’re just that — workarounds. If you want to be embedded in the Apple ecosystem, there is only one phone category you can carry.
2. You want a phone that just works
It’s a cliché, but it exists for a reason. Apple has a long history of being late to the party with a lot of features, but typically, when they get the feature, it’s very polished. Apple doesn’t take half-steps, and it rarely (though not never) treats its users like beta testers. It will take in the landscape, identify a feature that people like, and make it significantly better than the competition.
That philosophy extends to apps built for the platform as well. Apple maintains high standards for its App Store and approval process. I routinely encounter the same app on both platforms: it works flawlessly the first time on an iPhone but struggles on an Android phone. There’s a lot that goes into app development, especially on a platform like Android that can have multiple versions and flavors, so there’s no shade. Apple just delivers a better and more consistent experience.
3. You’re a video shooter
There are multiple reasons why the iPhone 17 Pro Max is the phone to use for video. First and foremost, it is storage. Put simply, the iPhone can get up to 2TB of onboard storage; the S26 Ultra maxes out at 1TB. A terabyte of storage seems like a lot — and it is, but if you’re shooting a ton of 8K or even 4K video, that’s going to chew up your storage in a hurry. This is also a solid argument if you’re a hardcore gamer, as they take up a lot of space these days.
The iPhone also offers a really great video experience. From shooting in dedicated ProRes Raw mode to open gate shooting, if you’re a filmmaker, you want options, and the iPhone gives you a ton. There are also numerous apps in the App Store that you can use to capture, enhance, and edit your videos.
Sure, there are apps in the Play Store for Android, but this combination of tools built for filmmakers makes the iPhone 17 Pro Max the phone to get for video enthusiasts.
You should buy the Samsung Galaxy S26 Ultra if…
Prakhar Khanna/ZDNET
1. You want the raw power
As recently as two years ago, this heading would have belonged under the iPhone category. But after Qualcomm rolled out the Snapdragon 8 Elite processor for the Galaxy, things changed. Of course, we’re talking about raw numbers here — user experience and vertical integration go a long way on Apple’s side, but Qualcomm’s processors have started to outperform Apple’s on benchmarking apps, and that’s a big deal.
Processing power is important in the realm of video processing/editing, gaming, and AI. If those are important categories for you, Samsung is the best game in town. The iPhone is a powerful machine, make no mistake, but the Samsung Galaxy S26 Ultra is currently the most powerful phone you can buy at the moment.
2. You’re all-in on AI
Prakhar Khanna/ZDNET
Unfortunately, Apple Intelligence has seen a few false starts now. Meanwhile, Samsung and Google keep rolling out AI-powered features one after another. This generation of Samsung phones is no exception, with Galaxy AI taking most of the headlines from this lineup of S26 smartphones. From editing images to the new Now Nudge feature, AI is all over this software release.
One particularly intriguing new feature is Gemini’s ability to summon an Uber with a command. Just tell Gemini where you want to go, and it’ll launch Uber, input the destination, and once you confirm, it’ll summon the car. This is the first of potentially numerous apps and services that can be further automated with AI.
3. You value your privacy
Apple has always prided itself as a privacy-first company, and that’s fair enough. But Samsung is upping the ante with Privacy Screen, a hardware/software combination that could potentially change how people think about their phones and privacy. Samsung redesigned its screen to feature wide and narrow-angle pixels that the company can, through software, turn off individually to obscure the screen.
It doesn’t just block looky-loos in the airplane seat next to you from reading your texts, but because it’s software-driven, you can selectively block specific elements on your screen. So your whole screen is bright and beautiful, but a notification rolls in and only blocks the area where it appears.
Writer’s choice
Both of these phones are downright fantastic — there’s no question. But at the end of the day, if I had to pick, I’d go with the Samsung Galaxy S26 Ultra. I have a dual-wielding phone lifestyle, but while I value the iPhone 17 Pro Max for its consistency and its comfort, Samsung and Android in general have a wider variety of fun form factors to play with, and that includes a multitude of accessories that you can buy into.
Apple works great within its ecosystem, and it’s just OK with everyone else. Android works very well with just about everything from Windows PCs to a wide variety of smartwatches and Bluetooth accessories. For everything an iPhone can connect to, an Android phone can connect to more. Plus, I didn’t even talk about the stylus here, because while I’m not a huge stylus person, I’m definitely a believer in the “it’s better to have it and not need it” philosophy.
Of course, as I mentioned before, I carry both. But I’m ultimately on Team Android, where I feel there’s more freedom.
Specifications
iPhone 17 Pro Max
Samsung Galaxy S26
Display
6.9 AMOLED with 120Hz, 3000 nits peak
6.9″ QHD AMOLED 120Hz, TBD nits peak
Weight
233g
214g
Processor
Apple A19 Pro
Qualcomm Snapdragon 8 Elite Gen 5 for Galaxy
Storage
256GB, 512GB, 1TB, 2TB
256GB, 512GB, 1TB
Battery
5,088mAh, 25W wired charging and 25W wireless charging
5,000mAh, 60W wired charging and 25W wireless charging
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