{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/6a108d0055b99c7f8915c7a7/6a26fdf0ec7c103dca4f59d9?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"Build vs. Buy — The Most Expensive Identity Crisis in Enterprise AI","thumbnail_width":200,"thumbnail_height":200,"thumbnail_url":"https://open-images.acast.com/shows/6a108d0055b99c7f8915c7a7/1780940320554-fa8fdf28-4aeb-4803-b8eb-f160fd33f210.jpeg?height=200","description":"<p>In a single 48-hour stretch, Microsoft announced seven in-house frontier AI models <em>and</em> their own GitHub division flipped Copilot to token billing — sending some users from $29 a month to $750. The universe basically scripted this episode of the build-versus-buy debate. The tested take from someone who builds enterprise AI for a living: this isn't one decision, it's three — and almost every failed AI program made one call instead of three.</p><p><br></p><p>This episode of <em>Above the Noise</em> — the unbiased AI brief for enterprise leaders:</p><ul><li>News Brief: Microsoft Build 2026 — the MAI in-house model family, and why the <em>largest</em> AI buyer on Earth deciding to build at <em>only</em> the foundation layer tells you exactly where the build line is for the rest of us · GitHub Copilot moves to token billing (users seeing 10–50× cost jumps) — the \"buy\" side's hidden tax: you don't own the pricing model · Ignore pile — SAP Sapphire's \"Autonomous Enterprise\" and its €100M <em>partner-payment</em> fund.</li><li>Deep Dive — Build vs. Buy: The three-layer cut (model / platform / workflow) that fixes the conversation. MIT NANDA: vendor-led wins 67% vs. 22–33% for pure internal builds. Build cost: $300K–$1.5M+ upfront + 20–30% annual maintenance, forever. Plus the four taxes every spreadsheet undercounts — and why the <em>right</em> answer in 2026 is almost always hybrid.</li><li>Expose a Lie: \"If we build it in-house, we own it.\" Steelmanned, then dismantled. When you build, you don't own the AI — you own the obligation to keep it alive. Maintenance bill, model-aging risk, governance liability, talent risk, all on you. Plus the data-moat sub-myth that drives half of build proposals.</li></ul><h2><br></h2><h2>🔗 Show Notes &amp; Sources</h2><p>Every stat in this episode is sourced. Check the work yourself:</p><h3><br></h3><h3>News Brief — Microsoft Build 2026 (MAI models)</h3><ul><li><a href=\"https://www.geekwire.com/2026/microsoft-unveils-seven-homegrown-ai-models-in-bid-for-long-term-self-sufficiency/\" rel=\"noopener noreferrer\" target=\"_blank\">Microsoft unveils seven homegrown AI models in new bid for 'long term self-sufficiency' (GeekWire, Jun 2 2026)</a></li><li><a href=\"https://memeburn.com/microsoft-build-2026-7-biggest-ai-announcements/\" rel=\"noopener noreferrer\" target=\"_blank\">Microsoft Build 2026: 7 Biggest AI Announcements You Need to Know (Memeburn)</a></li><li><a href=\"https://www.digit.in/features/general/at-build-2026-mustafa-suleyman-finally-revealed-microsofts-ai-moves.html\" rel=\"noopener noreferrer\" target=\"_blank\">At Build 2026, Mustafa Suleyman finally revealed Microsoft's AI moves (Digit)</a></li><li><a href=\"https://officechai.com/ai/anthropic-is-extremely-expensive-many-are-urgently-looking-for-alternatives-microsoft-ai-ceo-mustafa-suleyman/\" rel=\"noopener noreferrer\" target=\"_blank\">\"Anthropic Is Extremely Expensive, Many Are Urgently Looking For Alternatives\" — Mustafa Suleyman (OfficeChai)</a></li></ul><h3><br></h3><h3>News Brief — GitHub Copilot token billing flip</h3><ul><li><a href=\"https://techcrunch.com/2026/05/30/what-a-joke-github-copilots-new-token-based-billing-spurs-consternation-among-devs/\" rel=\"noopener noreferrer\" target=\"_blank\">'What a joke': GitHub Copilot's new token-based billing spurs consternation among devs (TechCrunch, May 30 2026)</a></li><li><a href=\"https://github.blog/news-insights/company-news/github-copilot-is-moving-to-usage-based-billing/\" rel=\"noopener noreferrer\" target=\"_blank\">GitHub Copilot is moving to usage-based billing (GitHub Blog)</a></li><li><a href=\"https://www.techtimes.com/articles/317536/20260601/github-copilot-pricing-change-drives-backlash-agentic-bills-jump-10x-50x-power-users.htm\" rel=\"noopener noreferrer\" target=\"_blank\">GitHub Copilot Pricing Change Drives Backlash: Agentic Bills Jump 10x to 50x for Power Users (TechTimes, Jun 1 2026)</a></li><li><a href=\"https://dataconomy.com/2026/06/01/github-copilot-token-pricing-backlash/\" rel=\"noopener noreferrer\" target=\"_blank\">Microsoft Switches GitHub Copilot To Usage-based AI Token Billing (Dataconomy, Jun 1 2026)</a></li></ul><h3><br></h3><h3>News Brief — SAP Sapphire 2026 (ignore pile)</h3><ul><li><a href=\"https://news.sap.com/2026/05/sap-sapphire-sap-unveils-autonomous-enterprise/\" rel=\"noopener noreferrer\" target=\"_blank\">SAP Unveils the Autonomous Enterprise (SAP News, May 2026)</a></li><li><a href=\"https://news.sap.com/2026/05/sap-sapphire-keynote-business-ai-platform-power-autonomous-enterprise/\" rel=\"noopener noreferrer\" target=\"_blank\">2026 SAP Sapphire Keynote: Powering the Autonomous Enterprise (SAP News)</a></li><li><a href=\"https://www.constellationr.com/insights/news/sap-sapphire-2026-sap-makes-its-case-it-should-your-autonomous-enterprise-platform\" rel=\"noopener noreferrer\" target=\"_blank\">SAP Sapphire 2026: SAP makes its case it should be your autonomous enterprise platform (Constellation Research)</a></li></ul><h3><br></h3><h3>Deep Dive — Build vs Buy</h3><ul><li><a href=\"https://fortune.com/2025/08/18/mit-report-95-percent-generative-ai-pilots-at-companies-failing-cfo/\" rel=\"noopener noreferrer\" target=\"_blank\">MIT report: 95% of generative AI pilots at companies are failing (Fortune, Aug 18 2025)</a></li><li><a href=\"https://octopusbuilds.com/blog/build-vs-buy-enterprise-ai-costs-success-rates\" rel=\"noopener noreferrer\" target=\"_blank\">Build vs Buy Enterprise AI in 2026: Costs, Success Rates, and Hybrid Strategies (Octopus Builds)</a></li><li><a href=\"https://www.justthink.ai/blog/build-vs-buy-enterprise-ai-2026\" rel=\"noopener noreferrer\" target=\"_blank\">Build vs Buy for Enterprise AI in 2026: A Decision Framework for Buyers Who Need Results (Just Think AI)</a></li><li><a href=\"https://www.deloitte.com/us/en/what-we-do/capabilities/applied-artificial-intelligence/content/state-of-ai-in-the-enterprise.html\" rel=\"noopener noreferrer\" target=\"_blank\">The State of AI in the Enterprise 2026 (Deloitte)</a></li><li><a href=\"https://www.gartner.com/en/newsroom/press-releases/2026-05-26-gartner-says-applying-uniform-governance-across-ai-agents-will-lead-to-enterprise-ai-agent-failure\" rel=\"noopener noreferrer\" target=\"_blank\">Gartner Says Applying Uniform Governance Across AI Agents Will Lead to Enterprise AI Agent Failure (Gartner, May 26 2026)</a></li><li><a href=\"https://www.gartner.com/en/newsroom/press-releases/2025-06-25-gartner-predicts-over-40-percent-of-agentic-ai-projects-will-be-canceled-by-end-of-2027\" rel=\"noopener noreferrer\" target=\"_blank\">Gartner Predicts Over 40% of Agentic AI Projects Will Be Canceled by End of 2027 (Gartner, Jun 25 2025)</a></li></ul><h3><br></h3><h3>Expose a Lie — \"If we build it in-house, we own it\"</h3><ul><li><a href=\"https://www.digitalcommerce360.com/2025/08/25/mit-report-no-return-on-generative-ai/\" rel=\"noopener noreferrer\" target=\"_blank\">MIT report finds 95% of enterprises see no return on generative AI (Digital Commerce 360, Aug 25 2025)</a></li><li><a href=\"https://www.swfte.com/blog/open-source-ai-models-frontier-2026\" rel=\"noopener noreferrer\" target=\"_blank\">Open Source AI Models: Why 2026 is the Year They Rival Proprietary Giants (Swfte AI)</a></li><li><a href=\"https://www.aimagicx.com/blog/llm-pricing-collapse-developer-guide-building-cheap-ai-2026\" rel=\"noopener noreferrer\" target=\"_blank\">The LLM Pricing Collapse of 2026: How to Build When Models Cost Almost Nothing (AI Magicx)</a></li><li><a href=\"https://helloai.com/articles/deepseek-v4-open-source-frontier-parity\" rel=\"noopener noreferrer\" target=\"_blank\">DeepSeek V4: The Open-Source Model Frontier Labs Feared (Hello AI)</a></li><li><a href=\"https://valueaddvc.com/blog/the-data-advantage-myth-why-proprietary-data-alone-wont-save-you\" rel=\"noopener noreferrer\" target=\"_blank\">The Data Advantage Myth: Why Proprietary Data Alone Won't Save You (Value Add VC)</a></li></ul>","author_name":"Shaun Gehring"}