Microsoft has cut the monthly AI spending cap per employee from $100,000 to approximately $10,000 in its Cloud & AI division, citing excessive usage concerns. The company’s annual spending on Anthropic’s Claude has dropped from over $1 billion to below $670 million, a reduction of more than a third. Microsoft is now directing employees toward its own tools like GitHub Copilot, which uses OpenAI models without usage fees, unlike Claude. Meta has similarly halved its internal Claude Code users. This reduction in internal spending is being offset by growth in revenue from selling Claude to customers through Microsoft’s platforms.
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