Azure OpenAI Service 2025 Updates

Since the initial launch of Azure OpenAI Service, Microsoft has made significant strides in expanding access to its suite of generative AI tools. Here’s a summary of the key updates and changes for 2025:

1. Expanded Access and Availability

Access to Azure OpenAI Service, which was initially limited due to high demand, has now been broadened. Microsoft has scaled up its infrastructure to accommodate more customers, and Azure OpenAI Service is now available in more regions globally. Despite this expansion, some models may still experience regional availability constraints, particularly for advanced tools like GPT-4, due to ongoing high demand.

2. Introduction of GPT-4 and Advanced Models

Alongside the availability of models like GPT-3.5 and Codex, Microsoft has introduced GPT-4, which offers enhanced capabilities for language understanding and content generation. This new version powers even more accurate responses and complex tasks, and it is now integrated into several Microsoft products, including Microsoft Designer and GitHub Copilot.

Additionally, Microsoft continues to optimize models like DALL-E 2 and Codex, offering cutting-edge tools for image generation and code completion, respectively.

3. Enhanced Security and Compliance

Azure OpenAI Service remains committed to providing enterprise-grade security and compliance. Microsoft has strengthened its security protocols to ensure that AI models adhere to privacy and data protection standards. Users can expect better regional availability for data residency and compliance, aligning with global regulations such as GDPR, SOC 2, and HIPAA.

4. Responsible AI and Ethical Standards

Microsoft has continued to develop responsible AI frameworks within Azure OpenAI Service, ensuring that models are used ethically and with minimal bias. AI content filtering has been upgraded, and Microsoft is working closely with customers to ensure the safe deployment of these models in sensitive applications.

5. Integration with Azure Ecosystem

Azure OpenAI Service now has deeper integration with the broader Azure ecosystem. This allows businesses to leverage a seamless experience across their cloud and AI services. Users can now combine OpenAI’s powerful models with other Azure tools such as Power BI, Azure Machine Learning, and Azure Synapse Analytics to drive more insights and efficiencies.

6. Cost Management and Licensing Updates

Azure OpenAI Service remains a monthly subscription-based model, with new pricing options to accommodate businesses of all sizes. Microsoft has also streamlined its licensing models, making it easier for customers to understand and predict costs. Customers are encouraged to use tools like the Azure Cost Management Tool and Azure Pricing Calculator to estimate their expenses based on their usage of OpenAI models.

7. New Use Cases and Applications

As the Azure OpenAI Service has evolved, so have the use cases for businesses. Companies are now using the service for more advanced AI-driven solutions, such as customer support automation, content generation, real-time language translation, and data analysis. Microsoft has also been expanding the use of OpenAI models in its own products, with GPT-4 now powering features in Microsoft Office tools like Word, Excel, and Outlook.

8. Ongoing Partnerships

Microsoft’s collaboration with OpenAI remains strong, but the landscape is evolving. OpenAI has begun to collaborate with other cloud providers, including Oracle, for specific enterprise applications. However, Microsoft remains the exclusive partner for OpenAI’s most advanced models, ensuring that Azure customers continue to have priority access to the cutting-edge AI tools.

Artificial Intelligence is buzzing

Artifical Intelligence (AI) is a hot topic and as Azure Open AI Service has taken over the Microsoft Product Terms the last few months, we thought it would be interesting to delve deeper into Azure OpenAI Service.

As we all know, Microsoft acquired a large stake in the OpenAI company – they purchased an exclusive license to the underlying technology behind GPT-3. The partnership began in 2016, with the first $1 billion invested in 2019 and another round in 2021. You can read more about their partnership here.

For OpenAI the investment means an influx of money and resources, enabling them to continue research, scale up their AI systems and deployment and keep OpenAI broadly accessible. To Microsoft, it means access to cutting edge AI technology and research.

1. What is the Azure Open AI Service?

Azure OpenAI Service is a new product offering on Azure. You can get started with Azure OpenAI the same way as any other Azure product, by creating a resource or an instance in the service in your Azure subscription.

Microsoft debuted Azure OpenAI Service to enable customers to tap into the power of large-scale generative AI models with the Enterprise promises customers have come to expect from the Azure cloud and computing infrastructure, e.g.:

• Security
• Reliability
• Compliance
• Data privacy
• Built-in responsible AI capabilities

Azure OpenAI Services expands access to large, advanced AI models, including:

• GPT 3.5
• Codex (AI model that powers GitHub Copilot)
• DALL-E 2 (AI model that powers Microsoft Designer)

These are all backed by Enterprise-grade capabilities and AI-optimized infrastructure. The models are grouped by capability and family. Keep in mind that not every model is currently available in all regions. Access can also be limited or temporarily unavailable per region due to high demand (as is the case right now in South Central US).

Note: So when Microsoft says OpenAI Service is ‘generally available’, access is actually limited at the moment due to high demand. We hear only existing Azure customers can access it at the moment. Let us know your experiences and if this has been the case for you?

2. What is Azure OpenAI Service used for?

Psst…Microsoft also uses it themselves! Customers use Azure OpenAI Service to:

• Speed up activities & free up employee time by easily generating content, summarizing customer service tickets
• Improve end experience of their customers
• Streamline operations internally
• Advanced use cases such as customer support, customization, and gaining insights from data using search, data extraction, and classification.

Microsoft also uses OpenAI to power its own products, such as GitHub Copilot, Power BI and Microsoft Designer to name a few.

GitHub Copilot

GitHub Copilot uses the Azure OpenAI Service. GitHub Copilot is basically a tool that you can use to suggest code. For example, if you are writing code (but like me, you are not a coder!), this can be very helpful. The Copilot asks you if this is the code you wanted to write. You can also make changes.

Power BI

Power BI is a business analytics tool and data visualization platform developed by Microsoft. Power BI was designed to help organizations gain insights from their data and make informed business decisions. It allows users to connect to various data sources, transform and prepare data, and create interactive visualizations and reports.

Microsoft Designer

Microsoft announced Microsoft Designer in October 2022. It is an AI-powered graphic design tool. You can use it to generate images, from simple images to complex infographics, but inputting natural language prompts. For example, the input “a blue elephant” generates various images of a blue elephant. Currently, Microsoft Designer is still in preview mode, and they have yet to announce a launch date for the full version.

3. The difference between Open AI & Azure OpenAI Service?

Simply put, Azure OpenAI Service is part of OpenAI.

Microsoft uses the tools offered by OpenAI to further their Azure product stack. As an Azure and Microsoft end user, you get access to advanced language AI models, such as GPT-4, GPT-3, Codex and DALL-E with the security and enterprise promise that comes with Azure.

Customers get Microsoft Azure security capabilities with the OpenAI models. Azure OpenAI offers regional availability, private networking and responsible AI content filtering.

Microsoft states that Azure is currently the only global public cloud offering AI supercomputers with massive scale-up and scale-out capabilities.

Fun fact: Azure currently ranks in the top 15 of the TOP500 supercomputers worldwide and is the highest-ranked global cloud services provider today.

4. How do you get access?

Basically, access is currently limited as Microsoft navigates the high demand AI is generating. Microsoft says it is also limiting access to ensure they can stick to their commitment to responsible AI. So they are working with customers with an existing partnership with Microsoft, the lower risk use cases, and those committed to incorporating mitigations.

Our guess is that if you ask nicely and start a conversation, with your account team, you can probably get access to these tools. I suggest if this is of interest to you, reach out and see what is possible. Azure OpenAI Service is a good way for Microsoft customers to enter into the OpenAI product stack.

5. What about licensing in Azure OpenAI Service?

Microsoft added Azure OpenAI Service to the Product Terms.

To access Azure OpenAI Service you need to have access to an Azure environment (or set up an Azure environment), either through your Enterprise Agreement, a MCA or CSP model. You can then get started (though as stated access is limited right now).

Azure OpenAI Service is charged month over month. Make sure you understand the bare metal that is used, whenever you start using a new Microsoft product. You need to understand all the other components that tie into it as, usually if you start an Azure service, it’s not just that service. It’s a whole package of other products with needs/requirements to maintain and run the service.

Artificial Intelligence is relatively new and rapidly developing, this also means Microsoft continuously announces lots of changes to its service. You can see updates and what’s new here.

To calculate costs, you can use the Azure CHA channel calculator online or you can reach out to an independent party (such as LicenseQ) or Microsoft partner. Figure out the costs before you start talking to Microsoft!