# AI Cost Optimization and Privacy Shifts in Tech

**Podcast:** TechCrunch Daily Crunch
**Published:** 2026-07-09

## Transcript

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Meta just launched a new AI generator and users are already pushing back.
I'm Imran Shaikh and your daily crunch for Thursday featuring the latest big tech headlines starts right now.
As AI costs continue to rise, companies are looking for ways to cut back.
You see, the most recent example is Microsoft, which has reportedly begun to deploy a cost-saving strategy by relying less on software from OpenAI and Anthropic and instead deploying its own in-house models.
Indeed, when it comes to two of its most widely used programs, Excel and Word, Microsoft has begun to use its homemade MAI models to respond to a certain percentage of user prompts.
Bloomberg reported this on Tuesday.
Now, in the past, the company had advertised the fact that large parts of Office 365 are powered by models from both OpenAI and Anthropic.
While Microsoft still relies on those third-party models, it's also increasingly sought to stand up its own AI agents.
Last month at its annual Build Conference, the company announced the launch of seven new MAI models, including an agentic coder and a text-to-image generator.
When reached for comment by TechCrunch, Microsoft said that it had nothing further to...
share.
Microsoft's apparent cutbacks are part of a broader trend.
After a brief blitz of token maxing earlier this year, the last few months have seen a new cycle awash in stories about tech companies acting significantly more thrifty.
Other large companies like Amazon, Uber, Meta, and Accenture have also reportedly made moves to curb spending.
The immense cost of providing and buying AI services has become a controversial part of the industry.
We Ward, an app that offers users rewards for logging their steps, is launching a feature called Walking Mode that allows users to restrict their use of chosen apps.
until they hit a certain step count.
Now, the future is supposed to motivate people to walk while also helping them reduce their screen time, if that's something they're looking to do.
If a user wants to scroll less on TikTok or Instagram while also making sure they make time for a daily walk, well, they could restrict access to the apps until they walk, let's say, 3,000 steps.
And of course, the step goals and apps locked are customizable.
Until now, WeWard encouraged users to go on a walk by awarding them Wards, an in-app currency that can be exchanged for cash, gift cards, or donations.
There's also a gamified leaderboard feature, so you can engage in some gentle competition with your friends.
But the addition of screen time reduction features makes sense for the app, since many users are looking for new ways to limit unnecessary phone and social media use.
With funding from tennis star and angel investor Venus, Williams.
The France-based app says that it has 30 million users across 29 countries, including 4 million U.S.
users.
The platform also says it has been shown to increase walking time by almost 25 percent.
On Tuesday, Meta unveiled Muse Image, its new AI image generator built by Meta Super Intelligence Labs, the company's dedicated AI unit.
The feature, which was internally codenamed Mango, is now available for free through the Meta AI app, as well as on Instagram Stories and WhatsApp.
Now, unfortunately, the new model is already causing controversy.
What exactly can you do with Muse?
Well, it sounds like the use cases are similar to most other AI image generators.
You'll be able to create plenty of goofy, cartoonish images, for instance.
If you're short on inspiration and can't come up with original prompts on your own, Meta says that Muse comes with...
presets, prefabricated image prompts, to spark ideas.
However, a particularly eyebrow-raising feature allows users to manipulate another Instagram user's images with AI as long as that user's profile is public.
Users merely tag the person and it allows them to take their picture and use it to create a new AI image, said one ex-user after The Verge first pointed out how potentially invasive this is.
Pulling real users into generated photos without explicit consent is a privacy landmine waiting to detonate.
MetaPolicy states that people may be able to create content with your Instagram content using AI features at Meta and that you will not be notified about content created using AI features at Meta.
Meta claims users have control over this feature, noting that there are settings you can use to disable this kind of co-option of your pictures if you want to.
Meta is also launching a host of new AI effects for Instagram Stories powered by Muse.
Meta says use of the new AI model is free for everyday creation, though users will need a subscription plan once they exceed a certain limit.
The company also said Muse Video, presumably an AI video generator, is already in development.
TechCrunch has reached out to Meta for more info.
And folks, that's your daily crunch.
Today's stories were reported by Lukas Ropek, Amanda Silberling, and more awesome TechCrunch journalists.
We'll see you here on Thursday, same Tech Time, same Crunch channel, and until then, find us at TechCrunch.com.