AI is supposed to save money… but in some cases is doing the exact opposite. Microsoft reportedly cuts Claude Code for GitHub Copilot CLI. AI coding costs may exceed human engineers

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  • Will other companies also cut third-party AI tools because of high AI costs?
  • Is Microsoft doing this mainly for cost savings or to push its own tools?
  • Are AI coding tools actually more expensive than human engineers in real use?

Source: https://tech.yahoo.com/ai/copilot/articles/microsoft-ditching-claude-code-copilot-133318848.html

Article snippet:

Last year, Microsoft CEO Satya Nadella revealed that the company writes up to 30% of its code using generative AI. As it now happens, Microsoft is reportedly planning to reduce the use of Anthropic’s Claude Code — a move designed to push its employees toward GitHub Copilot CLI.

For context, The Verge’s Tom Warren reported that Microsoft started opening access to Claude Code for its employees in December, including developers, project managers, and designers, allowing them to interact and experiment with the AI-coding assistant directly in their workflows.

Warren reports that Claude Code gained vast popularity among Microsoft employees over the past six months, which has seemingly led to a pullback on its Claude Code push in favor of its own GitHub Copilot CLI. “While Claude Code has been a popular addition, it has also undermined Microsoft’s new GitHub Copilot CLI coding tool,” Warren explained.

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Uber burns its 2026 AI budget in four months on Claude Code

Source: https://www.forbes.com/sites/janakirammsv/2026/05/17/uber-burns-its-2026-ai-budget-in-four-months-on-claude-code/

Article snippet:

Uber exhausted its entire 2026 artificial intelligence budget by April, four months into the calendar year, after Anthropic’s Claude Code spread across roughly 5,000 engineers faster than the company’s finance models had anticipated. Chief Technology Officer Praveen Neppalli Naga confirmed the overrun to The Information, saying the company was back to the drawing board on its assumptions. Uber’s total research and development spend reached $3.4 billion in 2025, up 9 percent year over year, which makes the budget collapse less about scale and more about a pricing model that enterprise finance teams have not learned how to manage.


h/t callsonreddit

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