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Microsoft brings Anthropic to Copilot

PLUS: Alibaba joins AI infrastructure race

Author

Barsee
25 Sep

Together with

Howdy, it’s Barsee again.

Happy Thursday, AI family, and welcome back to AI Valley.

Today’s climb through the Valley reveals:

  • Microsoft brings Anthropic to Copilot

  • Google reports widespread AI adoption among developers

  • Alibaba joins AI infrastructure race

  • Plus trending AI tools, posts, and resources

Let’s dive into the Valley of AI…

CLOCKWISE

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THROUGH THE VALLEY

Microsoft is adding Anthropic’s Claude Sonnet 4 and Opus 4.1 to Copilot Studio, alongside OpenAI’s GPT-4o. These models are already live in early test environments and will expand more widely in the next two weeks. Claude Opus 4.1 is geared for advanced research, while both Anthropic models can be used to build custom enterprise agents with built-in safety guardrails. Microsoft also plans to roll out multimodal Copilot features across Teams and Outlook.

Image Credit: Microsoft

The update broadens Microsoft’s AI lineup, which until now leaned heavily on OpenAI. While that partnership stays strong, bringing Anthropic into the mix gives Microsoft more flexibility as it expands Copilot through Microsoft 365 and enterprise tools. At the same time, the company is investing in its own smaller models designed for on-device AI.

Why does it matter?

Adding Anthropic shows Microsoft isn’t putting all its bets on OpenAI. The move gives enterprises more options for building agents, strengthens Copilot’s ecosystem, and helps Microsoft stay competitive against Google and AWS.

Google Cloud’s latest DORA report shows that 90% of developers now use AI tools every day, though trust remains shaky. The survey of nearly 5,000 tech workers found devs spend about two hours daily with AI assistants.

Image Credit: Dora

Even with heavy usage, 30% of developers said they trust AI outputs only “a little” or “not at all.” Still, 80% said they work faster and 59% noticed better code quality. Security also got a spotlight this year, with teams reporting quicker detection of vulnerabilities. To help guide adoption, Google introduced the DORA AI Capabilities Model, which lists seven practices for making the most of AI in development.

Why does it matter?

AI has shifted from experiment to essential infrastructure in software development. Adoption is nearly universal, but trust is still low, showing developers see AI as a productivity booster, while human oversight is still crucial for accuracy and security.

At its annual Apsara Conference, Alibaba Cloud announced new AI data centers in Brazil, France, and the Netherlands, with more coming later this year in Mexico, Japan, South Korea, Malaysia, and Dubai. The company had already pledged $53B over three years for AI infrastructure, but CEO Eddie Wu said spending will exceed that as demand “has far exceeded our expectations.” He also predicted global AI spending could reach $4 trillion in five years.

Microsoft’s Wisconsin data center

Beyond new sites, Alibaba shared a deal with Nvidia to integrate AI tools for robotics and self-driving cars, and unveiled its 1-trillion-parameter Qwen3-Max model. Alibaba claims it outperforms rivals like Claude, GPT-4o, and DeepSeek-V3.1 on some reasoning benchmarks. The news boosted Alibaba’s stock in both the U.S. and Hong Kong.

Why does it matter?

AI infrastructure has become the new battleground. With U.S. and Chinese giants pouring billions into data centers and high-performance models, Alibaba’s aggressive expansion shows both the pressure to keep up and the huge opportunities at stake. In this race, compute power is quickly becoming the foundation of AI dominance.

TRENDING TOOLS

  • OK Computer > Kimi’s new agent mode that can build entire websites with 1 prompt

  • Flowith > Non-stop, million-context creation agent that executes tasks without limits

  • Memories > Find any moment in your videos by simply asking a question instead of scrubbing through footage

  • Reve > AI agent runs multiple parallel web searches, selects the clearest reference images, and places them all accurately in a scene

  • Google Search Live > With Google Lens, your camera becomes the search bar. Show your surroundings, ask, and get real-time answers

THINK PIECES / BRAIN BOOST

THE VALLEY GEMS

What’s trending on social today:

THAT’S ALL FOR TODAY

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