Microsoft cuts Claude Code access as AI coding costs surge

New Delhi, May 27 : US-based technology firm Microsoft has begun scaling back access to Anthropic’s Claude Code among its employees and is redirecting engineers towards GitHub Copilot CLI as surging AI usage drives up enterprise computing costs, according to multiple reports. Reports said the technology company had earlier expanded access to Claude Code across thousands of employees, including developers, project managers and designers, to encourage experimentation with AI-assisted coding tools. However, the rapid adoption of the platform is now said to have significantly increased operational expenses. Despite the rollback, Microsoft’s broader partnership with Anthropic remains intact. The company continues to maintain its multibillion-dollar Foundry agreement, which inMicrosoft cuts Claude Code access as AI coding costs surge cludes cloud infrastructure support and access to Claude models through Azure services. The development comes as several technology companies grapple with the rising costs associated with large-scale deployment of generative AI tools. In addition, Uber Chief Technology Officer Praveen Neppalli Naga had reportedly said that the company exhausted its entire 2026 budget for AI coding tools within the first four months of the year due to heavy employee usage.