Microsoft Reportedly Cuts AI Model Allowances as Internal Claude Spending Comes Under Pressure

Microsoft is reportedly tightening internal AI-model spending after employees in its Cloud and AI group previously had allowances as high as $100,000 a month apiece. The typical cap in that organization has recently fallen to around $10,000 in most cases, while managers steer engineers toward GitHub Copilot, OpenAI models and other non-Anthropic options.