Microsoft Slashes Internal AI Budgets, Cuts Anthropic Spending by One-Third as Cost Pressures Mount

Microsoft has sharply reduced internal spending on Anthropic's Claude models, cutting per-employee AI budgets from approximately $100,000 to $10,000 per month in its cloud and AI division, according to reporting from The Information. The company is also reducing its overall planned annual spending on Anthropic technology by more than one-third from an initial budget exceeding $1 billion, directing engineers instead toward its own models and GitHub Copilot.