Microsoft Cancels Claude Code Licenses
Microsoft has started canceling Claude Code licenses for thousands of its own developers, moving them to GitHub Copilot CLI. The decision comes after Claude Code proved immensely popular within the company, but also undermined Microsoft's own coding tool. The transition will affect the Experiences + Devices team, which includes engineers responsible for Windows, Microsoft 365, Outlook, Teams, and Surface. The cut-off date is June 30, the end of Microsoft's financial year, making it an easy way to reduce operating expenses.
Rajesh Jha, executive vice president of Microsoft's experiences and devices group, explained in an internal memo that the goal was to learn quickly and benchmark tools. While Claude Code was an important part of that learning, Copilot CLI offers deeper integration with Microsoft's repos, workflows, and security expectations. The move is not without challenges, as many developers preferred Claude Code over Copilot CLI, and there are still gaps between the two products. Microsoft had even considered acquiring Cursor to close the gap, but now puts pressure on GitHub to improve Copilot CLI.
Anthropic's models will remain accessible through Copilot CLI, and Microsoft continues to favor Anthropic's Claude models in Microsoft 365 apps and Copilot for specific tasks. The decision does not affect the Foundry deal with Anthropic.
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Source: The Verge News