Microsoft cuts Anthropic Claude budget by over a third

Microsoft is actively reducing its internal reliance on Anthropic's Claude artificial intelligence technology. The company is steering staff toward its own proprietary AI tools, according to a report by The Information.

Earlier this year, Microsoft projected an internal spend of at least $1 billion on Anthropic's technology, according to sources familiar with the company's budget. That internal spending estimate has since been slashed by more than a third to rein in operating costs. Company leadership has asked staff to curb their Claude usage and adopt Microsoft's proprietary AI offerings instead.

The reduction applies exclusively to Microsoft's internal operations. Customer spending on Anthropic models through Microsoft's enterprise platforms continues to see steady growth.

Meta Platforms is making a similar shift. Usage of Anthropic's Claude Code among Meta employees dropped from approximately 60,000 earlier this year to roughly 30,000. Meta has been advancing its own tools, including Muse Code, its Muse Spark model line, and an internal tool called MetaCode that has surpassed 30,000 users.