AIMPACT Update: On May 15 (UTC+8), according to monitoring by Beating, Microsoft is preparing to revoke most of its internal Claude Code licenses and requires engineers to transition to its own GitHub Copilot CLI. The Experiences + Devices team responsible for Windows, Microsoft 365, Outlook, Teams, and Surface will fully deactivate Claude Code by June 30. In December last year, Microsoft granted access to Claude Code to thousands of employees, enabling designers and product managers to prototype code themselves. Over the past six months, engineers have increasingly preferred Claude Code in their daily work, while the newly launched Copilot CLI has been largely neglected, with the product gap between the two remaining unaddressed. Microsoft previously considered acquiring Cursor to bridge this gap but abandoned the plan due to antitrust concerns. Rajesh Jha, Executive Vice President of E+D, cited toolchain unification as the rationale in an internal memo, stating that Copilot CLI’s value lies in Microsoft’s ability to directly shape the product alongside GitHub. However, June 30 also marks the end of Microsoft’s current fiscal year, making license cancellation a convenient means of reducing operational costs for the new fiscal year. The discontinuation of Claude Code does not affect Microsoft’s other collaborations with Anthropic; Claude models will still be accessible via Copilot CLI and continue to serve within Microsoft 365 and Copilot, with no impact on the Foundry agreement or Cowork feature integrations. (Source: BlockBeats)
Microsoft to Reduce Claude Code Licenses and Require Use of GitHub Copilot CLI by June 30
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Summary
Microsoft is phasing out internal Claude Code licenses by June 30, requiring engineers to transition to GitHub Copilot CLI. The Experiences + Devices team will discontinue all use of Claude Code. Despite its popularity, this move aligns with cost-reduction initiatives and CFT measures ahead of the new fiscal year. Liquidity and crypto markets remain unaffected, as Claude Code will continue to operate through Copilot CLI for Microsoft 365 and Copilot.
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