While maintaining broader ties with Anthropic’s AI ecosystem, Microsoft is reportedly scaling back internal use of Anthropic’s Claude Code as it pushes developers toward GitHub Copilot CLI– an AI-powered coding assistant built by GitHub, Microsoft’s software development platform.

Microsoft is reportedly winding down internal use of Claude Code and transitioning engineers toward GitHub Copilot CLI.

The shift reportedly affects Microsoft’s Experiences + Devices division, the group behind Windows, Microsoft 365, Outlook, Teams, and Surface, with teams expected to move away from Claude Code by the end of June.

The move is notable because Microsoft had only recently expanded Claude Code access internally, extending the tool beyond software engineers to designers and product managers as part of a wider push into AI-assisted coding workflows.

Claude Code appears to have gained significant internal adoption during that rollout, with the tool becoming increasingly popular among employees over the past several months.

Some reports suggested the transition may not be universally welcomed internally, with many employees reportedly preferring Claude Code over GitHub Copilot CLI because of feature differences.

According to a report by The Verge citing an internal memo, Rajesh Jha, executive vice president of Microsoft’s experiences and devices group, said the company introduced both Claude Code and Copilot CLI to “benchmark the tools in real engineering workflows.”

The transition could also give Microsoft tighter control over developer tooling through GitHub, which it owns, while aligning workflows more closely with its own security, integration, and product ecosystem.

Some reports highlighted the timing of the move to Microsoft’s June 30 fiscal year-end and broader efforts to manage operating costs tied to large-scale AI deployments.

Industry observers have also argued that token-based pricing may have made Claude Code difficult to sustain at enterprise scale, though Microsoft has not publicly confirmed cost as a reason for the transition.

The more interesting part is that Microsoft’s own engineers liked Claude code best…and they’re cutting it anyway

Token pricing is making enterprise actually look at what these models cost to run and that could be a problem for the labs when the subsidy ends. Lots of cheaper… https://t.co/CkJtN8PFNv

— Deirdre Bosa (@dee_bosa) May 22, 2026

The change does not appear to affect Microsoft’s broader relationship with Anthropic. Claude models remain available across parts of Microsoft’s wider AI and Azure ecosystem, according to Microsoft’s Azure AI Foundry and Microsoft 365 Copilot support documentation.

Separately, Anthropic is exploring the use of Microsoft’s Maia AI chips to support growing demand for Claude. The reports indicate that infrastructure ties between the two companies may continue evolving even as Microsoft reduces internal reliance on Anthropic’s coding interface.

Also Read: Anthropic’s Claude Code Security Triggers Selloff in Cybersecurity and Software Stocks