Microsoft reportedly evaluates Moonshot AI’s Kimi K3 for Copilot

Microsoft is internally evaluating Moonshot AI’s Kimi K3 for some Copilot inference workloads, potentially replacing parts of its current OpenAI and Anthropic setup.

The company has not made a final decision, and any rollout would still need technical, security, sovereignty, and export-control review.

Microsoft estimates partial adoption could save up to $600 million a year in cloud infrastructure costs.

The test suggests Microsoft is looking to lower Copilot operating costs and reduce dependence on a small set of AI model providers.