Updated
Updated · InfoWorld · Jun 5
Microsoft AI Chief Calls Anthropic Too Expensive as Build Unveils 7 Lower-Cost Models
Updated
Updated · InfoWorld · Jun 5

Microsoft AI Chief Calls Anthropic Too Expensive as Build Unveils 7 Lower-Cost Models

1 articles · Updated · InfoWorld · Jun 5

Summary

  • Mustafa Suleyman said Anthropic’s AI services are “extremely expensive,” arguing many customers are urgently seeking cheaper alternatives.
  • 7 new AI models unveiled at Microsoft’s Build conference were pitched on lower cost, as enterprises scrutinize AI spending and struggle to show meaningful return on investment.
  • Microsoft is also steering developers toward its own stack: it was reported last month that the company would end most internal Claude Code licenses in June and move engineers to GitHub Copilot.
  • Gartner warned in 2025 that many enterprise AI projects could be canceled by 2027, underscoring why pricing is becoming a central battleground among AI vendors.

Insights

As AI costs force even giants like Microsoft to retreat, is the industry’s 'bigger is better' model collapsing?
If Microsoft's own engineers prefer a rival's 'expensive' AI, can its cheaper in-house tool truly compete on quality?