Microsoft has reduced its internal AI budgets from $100,000 to around $10,000 per employee within its Cloud and AI organization. This significant budget cut is accompanied by a strategic shift favoring OpenAI models and Microsoft’s own models over Anthropic’s models like Claude. This decision appears to be driven by cost management and performance considerations. Despite this internal pivot, Anthropic’s models continue to be available on Microsoft’s Foundry platform and customer-facing Copilot products.
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