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OpenAI launches GPT 5.6 as Microsoft Copilot's preferred model amid breakup speculation

The launch follows a delay last month due to U.S. government concerns over national security risks. Anthropic had previously disabled its models after a June 12 export control order.

Published 10 July 2026 · ID 2026-07-10-openai-launches-gpt-5-6-as-microsoft-copilot-s-preferred-model-amid-breakup-spec

OpenAI has announced the public launch of GPT-5.6, its most advanced AI model, on Thursday. This follows a delay last month due to U.S. government requests over heightened national security concerns regarding the potential misuse of powerful AI technologies. The move comes amid speculation about the future of the partnership between OpenAI and Microsoft, particularly with Microsoft Copilot, which is reportedly using GPT-5.6 as its preferred model.

The United States and China are engaged in a race to develop cutting-edge AI models that could significantly impact sectors reliant on complex, interconnected, and often decades-old technology systems. This competition has raised concerns among experts about the potential for sophisticated cyberattacks and the broader implications of AI advancements.

The launch of GPT-5.6 is significant, as it follows a delay prompted by U.S. government requests. Earlier this week, Bloomberg reported that Microsoft is joining a trend of AI cost-cutting by relying more on its own models. This shift may have implications for the broader AI industry and the relationships between AI developers and their corporate partners.

The preference for GPT-5.6 by Microsoft Copilot could influence the direction of AI development and deployment. This may lead to increased costs for businesses relying on third-party models, potential vendor lock-in, and challenges in governance and compliance. Market reactions could vary, with some companies benefiting from the enhanced capabilities of GPT-5.6 while others may face increased competition and pressure to adapt.

As the AI landscape continues to evolve, the relationship between OpenAI and Microsoft remains a focal point. The launch of GPT-5.6 and its adoption by Microsoft Copilot may signal a broader trend of companies prioritizing in-house AI development. However, the implications for the industry remain uncertain, with ongoing developments likely to shape the future of AI partnerships and competition.

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