Microsoft planned $1 billion for employees using Claude. Then it cut over a third.
Earlier this year, Microsoft projected spending at least $1 billion a year on Claude, the AI models of Anthropic, for its own staff, The Information reported on Monday.
That projection has since been cut by more than a third, according to summaries of the report.
Microsoft leaders told staff to use in-house tools instead, such as GitHub Copilot, its own coding assistant, The Decoder reported. In the cloud division, the monthly AI budget per employee fell from $100,000 to about $10,000.
Meta is pushing its own coding tools too. Users of Claude Code, Anthropic's coding tool, fell there from about 60,000 to roughly 30,000 this year, and Meta spent over $105 million on it in one 28-day period, according to The Decoder.
The cut covers Microsoft's own staff. Customers keep spending more on Anthropic models through Microsoft's platforms, per Investing.com. None of the summaries carried a comment from Microsoft, Meta or Anthropic.
$100,000 to $10,000 is a 90% cut in one division's monthly budget per person. The reports do not say whether the spending moved to other AI tools or actually went away.
What monthly AI budget per employee does your company set?
Image: AI-generated.
Sources
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For your next steering committee
- 1Ask which AI tools already touch your ERP or finance data, including the ones nobody approved.
- 2Ask what each tool is allowed to change, and who reviews what it changed.
- 3Ask how the result is measured, and who decides to switch a tool off.
Issue 01 of the ERP LEADERS brief puts a timeline, the three-number review and six questions on one page. Read issue 01
Welcome back. · Issue 01
