Meta and Microsoft cut internal Claude use as AI costs climb
Anthropic’s Claude has become popular with developers and businesses, but two of its biggest technology customers are now trying to reduce how much their own employees use the AI tool. Meta and Microsoft are both putting greater focus on their own AI systems for internal work, according to a fresh report by The Information. The companies are not, however, cutting ties with Anthropic. Claude continues to be available to their customers, creating a situation where the companies are trying to limit their own use of the technology while still selling access to it.
Microsoft is taking a particularly cautious approach because of the cost involved. The company had expected its internal spending on Anthropic's AI technology to reach at least $1 billion this year. That estimate has reportedly been reduced by more than one-third, with employees being asked to use Microsoft’s own AI products where possible.
The move follows an earlier attempt by Microsoft to get its developers to use Claude Code. Thousands of employees were given access to Anthropic's coding assistant from December, and the tool became popular among Microsoft’s engineering teams.
Microsoft later decided that its developers should move towards GitHub Copilot CLI instead. The company’s Experiences + Devices division, which includes teams working on products such as Windows, Microsoft 365 and Surface, was preparing to end most of its Claude Code licences by the end of June.
The decision was not only about saving money. Microsoft also wanted its engineers to spend more time using its own coding product and providing feedback that could help improve it. Anthropic’s models have not been removed from Microsoft's wider AI business, though. Claude remains available through Microsoft Foundry and is also used for some tasks across Microsoft 365 and Copilot.Meta is also moving employees towards its own AI tools
Meta is making a similar internal change. The number of Meta employees using Claude Code has fallen to around 30,000 from about 60,000 earlier this year. Some of the decline can be linked to layoffs that affected around 10 per cent of Meta’s workforce, but Meta is also increasingly relying on coding tools built around its own AI models.
The company’s internal MetaCode tool has crossed 30,000 users, while Muse Code, which is being tested as a competitor to Claude Code, has attracted more than 6,000 internal users.
The growing preference for in-house AI tools comes at a time when companies are discovering how expensive widespread AI use can become. An Axios report in May said an AI consultant had seen a client receive a Claude bill of around $500 million for one month after the company failed to impose proper usage limits on employee licences.- Ends
Ankita Garg is a tech journalist with more than 9 years of experience. She is always curious about new gadgets and loves writing about them. When not writing, you will find her painting or sketching.
