Microsoft's Rationing of AI: Beginning of the AI Mania's End

Microsoft is rationing artificial intelligence. Not selling less of it — using less of it, inside its own walls.

The Information reported this week that Microsoft has cut its projected spending of more than $1 billion a year on Anthropic’s AI models — for its own employees’ use — by over a third. In the Cloud and AI division, monthly AI allowances were cut from $100,000 per employee to about $10,000. Engineers are being steered off Anthropic’s Claude and onto Microsoft’s own GitHub Copilot. Meta is doing the same, roughly halving its internal users of Claude’s coding tools.

Read that again.