Microsoft Cancels Claude Code for Thousands, Shifting Developers to Copilot CLI by June 30
Updated
Updated · The Verge · May 14
Microsoft Cancels Claude Code for Thousands, Shifting Developers to Copilot CLI by June 30
2 articles · Updated · The Verge · May 14
Thousands of Microsoft developers are losing Claude Code access as the company removes most licenses and pushes teams—especially Experiences + Devices—to GitHub Copilot CLI before a June 30 cutoff.
June 30 aligns with Microsoft’s fiscal year-end, and executives say the move will standardize on a tool Microsoft can shape directly with GitHub while also trimming operating costs.
Claude Code had become popular internally after Microsoft opened it to thousands of employees in December, including non-engineers, and sources say many developers preferred it over Copilot CLI despite product gaps.
Copilot CLI will still offer Anthropic, OpenAI and Microsoft models, and Microsoft plans deeper investment and tighter workflow integration as engineers are urged to file bugs and feedback during the transition.
The shift does not affect Microsoft’s broader Anthropic relationship, including Foundry access to Claude models, but it raises pressure on GitHub to close the gap with a rival tool Microsoft’s own staff favored.
Is Microsoft's pivot to Copilot CLI a strategic move for AI dominance or a gamble that will alienate its top engineers?
Why is Microsoft forcing developers off a superior AI tool for its own, despite 'unusable' rate limits and known performance gaps?