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⬤ LOW 06 Aug 2026, 03:36 UTC

After 'ban' on Claude Code, Microsoft has more 'bad news' for Anthropic

Microsoft has told engineers that "tokenmaxxing is not what we are optimizing for" in a new internal memo from EVP Jay Parikh. The memo makes OpenAI's GPT-5.6 the default internal model, replacing an auto-router that had been sending GitHub Copilot workloads to Anthropic's Claude. Every Microsoft division now carries an AI token budget target, months after Claude Code licences were cancelled.
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