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Microsoft to Wind Down Claude Code, Standardizes on GitHub Copilot CLI

The move favors a tool Microsoft can shape with GitHub, with the June 30 timing reported to align with fiscal-year cost control.

Overview

  • Microsoft plans to cancel most Claude Code licenses and direct engineers to GitHub Copilot CLI, with the Experiences + Devices group told to transition by the end of June.
  • An internal memo from Rajesh Jha says Copilot CLI fits Microsoft’s repos, workflows, and security needs because the company can co-develop it with GitHub.
  • Sources report the June 30 cutoff lines up with Microsoft’s fiscal year end, which could lower operating costs as licenses are dropped.
  • Anthropic’s models will still be reachable through Copilot CLI, and reporting says Microsoft’s Foundry arrangement with Anthropic remains in place.
  • Microsoft opened Claude Code to thousands of employees in December, many of whom preferred it, and the company is now asking for bug reports and feedback as it invests to close gaps in Copilot CLI.