Microsoft Begins to Revoke Claude Code Permissions and Fully Shifts to GitHub Copilot CLI

According to reports, Microsoft has begun to gradually cancel the Claude Code licenses for thousands of internal developers. Although this AI programming tool from Anthropic was very popular among Microsoft employees in the past six months, the company has decided to focus on its own GitHub Copilot CLI.

Claude

Internal Struggles: Useful but Costly

Microsoft executive Rajesh Jha mentioned in an internal memo that the main reason for canceling the license was product integration and financial considerations.

Financial Pressure: June 30 is the end of Microsoft's fiscal year, and canceling the Claude license is seen as a direct way to cut operational costs.
Ecological Closed Loop: Microsoft believes that Copilot CLI is easier to deeply customize for the company's internal code repositories, security standards, and workflows.

Employee Dissatisfaction and Alternatives

Although Claude Code helped many designers and product managers without programming experience to complete prototype development, Microsoft now requires all engineering teams to transfer their workflows by the end of June. To bridge the gap, Microsoft is increasing its investment in GitHub Copilot CLI to ensure it can integrate models from Anthropic, OpenAI, and Microsoft itself.

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