Microsoft cancels internal Claude Code licenses

microsoft is ending its internal pilot of anthropic's claude code, requiring the thousands of developers and non-technical staff currently using it to switch to github copilot cli by june 30. the move, confirmed by executive vice president rajesh jha, aims to consolidate on a single agentic interface that meets microsoft's specific security and engineering needs. sources indicate the decision is also financial, cutting costs ahead of the new fiscal year, as developers increasingly favored claude code over microsoft's own offering. microsoft plans to improve copilot cli with direct feedback and will continue offering access to anthropic models within that wrapper.