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Hello Bipin Kadam,
Welcome to Microsoft Q&A and Thank you for reaching out.
I understand that you’re navigating the DALL·E 3 retirement and the associated upgrade process. Here’s the complete and accurate picture to help you plan confidently.
Automatic upgrades
Although your deployment’s Version Upgrade Policy is set to “Once a new default version is available”, this policy only applies within the same model family. In this case:
- DALL·E 3 (v3.0) is being retired, not upgraded.
gpt-image-1-mini is a different model family, not a newer version of DALL·E 3.
Because of this Microsoft will not automatically upgrade your deployment.
There is no newer default version of DALL·E 3 to roll forward to.
If no action is taken, the deployment will stop working after 18-Feb-2026.
This is why, when editing the deployment, you only see version 3.0 and no upgrade options.
Manual migration
You will need to explicitly migrate your application from DALL·E 3.0 to gpt-image-1-mini. This involves:
Creating a new deployment using gpt-image-1-mini
Updating application code:
- Model name / deployment reference
- Request parameters (image generation schema differs)
- Response handling
Validating output behavior (style, quality, safety)
Switching traffic to the new deployment
Retiring the old DALL·E 3 deployment
Microsoft intentionally does not perform cross-model automatic upgrades to avoid silent behavior, output, or pricing changes.
Please refer this DALL·E 3 Model Retirement and Upgrade Documentation
I Hope this helps. Do let me know if you have any further queries.
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Thank you!