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Microsoft Drops Most Claude Code Licenses, Moves Developers to GitHub Copilot CLI

The shift signals a push for a coding assistant Microsoft can tailor with GitHub to its repos and security needs.

Overview

  • Microsoft is canceling most internal licenses for Anthropic’s Claude Code, an AI coding assistant, and will shift engineers to GitHub Copilot CLI by the end of June.
  • Vice president Rajesh Jha said Copilot CLI emerged from side‑by‑side testing as the option Microsoft can shape with GitHub for its code repositories, workflows, and security rules.
  • Employees gained access to Claude Code in December to try AI help for coding, prototyping, and testing, and many staffers reportedly preferred it because of its features.
  • Windows Central reports the timing may also trim costs before Microsoft’s June 30 fiscal year end, which the company has not confirmed.
  • Microsoft says its work with Anthropic continues, with Claude models still available through Copilot CLI and used in some Microsoft 365 and Copilot features.