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Microsoft's New AI Models — Full Breakdown & Transcript

0h 01m video Published Jul 21, 2026 Transcribed Aug 8, 2026 M Milan Jovanović
Beginner 1 min read For: Developers and tech enthusiasts interested in AI coding tools and Microsoft's latest model offerings.
AI Trust Score 65/100
⚠️ Average / Some Fluff

"The title is accurate but understated—the video delivers a clear, concise overview of the new models, though it lacks deep technical detail."

AI Summary

Microsoft has quietly introduced a new family of in-house AI models, with one already integrated into VS Code Copilot. The video highlights the MAI Code 1 Flash model, a fast and cost-effective agentic coding model, and the flagship MAI Thinking 1 reasoning model, which performs competitively in blind tests.

[00:02]
Microsoft's In-House AI Model Family

Microsoft has built a family of AI models from scratch, covering five areas: image, voice, transcription, coding, and advanced reasoning. One model, MAI Code 1 Flash, is already available in VS Code Copilot.

[00:16]
MAI Code 1 Flash: Performance and Cost

MAI Code 1 Flash is a small, fast, agentic coding model on par with Haiku. It performed well in testing and comes at a fraction of the cost compared to other models.

[00:31]
MAI Thinking 1: Flagship Reasoning Model

The flagship model, MAI Thinking 1, is an advanced reasoning model. In blind testing, most users preferred it over Sonic, and it scores close to Opus 4.6 on benchmarks.

[00:58]
How to Try MAI Code 1 Flash

To try the model, open the Copilot model picker in VS Code, switch the active model to MAI Code 1 Flash, and run it on coding tasks. The video encourages users to share their experience in the comments.

Microsoft is expanding its AI capabilities with a new in-house model family, offering developers a cost-effective and high-performing alternative in VS Code Copilot. The MAI models show promise, with the reasoning model already competing well against established benchmarks.

Mentioned in this Video

Tutorial Checklist

1 00:58 Open the Copilot model picker in VS Code.
2 00:58 Switch the active model to MAI Code 1 Flash.
3 00:58 Run the model on your coding tasks to test performance.

Study Flashcards (5)

What are the five areas covered by Microsoft's new AI model family?

easy Click to reveal answer

Image, voice, transcription, coding, and advanced reasoning.

00:02

Which model is already available in VS Code Copilot?

easy Click to reveal answer

MAI Code 1 Flash.

00:02

How does MAI Code 1 Flash compare to Haiku?

medium Click to reveal answer

It is on par with Haiku in performance.

00:16

What is the flagship reasoning model called?

easy Click to reveal answer

MAI Thinking 1.

00:31

In blind testing, how did MAI Thinking 1 compare to Sonic?

medium Click to reveal answer

Most users preferred MAI Thinking 1 over Sonic.

00:31

💡 Key Takeaways

💡

Microsoft's In-House AI Family

Reveals a strategic move to build proprietary AI models across multiple domains, signaling a shift from relying on external providers.

00:02
📊

Cost-Effective Coding Model

Highlights a practical advantage for developers: high performance at a fraction of the cost, which could disrupt pricing in the AI coding tool market.

00:16
📊

Competitive Reasoning Model

MAI Thinking 1's benchmark scores close to Opus 4.6 show Microsoft's models are becoming serious contenders in advanced reasoning.

00:31

[00:02] models it has built from scratch and one of them is already inside of your VS Code Copilot. This is one in-house family of AI models across five different areas: image, voice, transcription, coding, and advanced

[00:16] reasoning. And the one I want to show you is MAI Code 1 Flash, which you can already use from Copilot inside of VS Code. This is a small, fast, agentic coding model that's on par with Haiku. In my testing, it performed pretty well

[00:31] threw at it, and this comes at the fraction of a cost compared to other models. The flagship model is called MAI Thinking 1, and this is an advanced reasoning model, and in blind testing, Microsoft says that most users preferred

[00:45] it compared to Sonic. Across benchmarks, it scores pretty close to Opus 4.6, and model they released, so I expect the newer ones to catch up significantly

[00:58] faster. So, if you want to try this out, go ahead and open your Copilot model picker in VS Code, switch the active model to MAI Code 1 Flash, and give it a run, and let me know in the comments how it performs on your coding tasks. And if

[01:12] you want to learn more about the new family of models coming from Microsoft AI, I'm going to leave a link in the pinned comment right below, so go ahead pinned comment right below, so go ahead and check it out.

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