Microsoft Makes Bold Move to Cancel Claude Code Licenses

Microsoft initially opened access to Claude Code in December, inviting thousands of developers to use Anthropic’s AI coding tool daily. However, the tool has become so popular that Microsoft is now phasing it out in favor of Copilot CLI. The Experiences + Devices team is expected to transition to Copilot CLI by the end of June, with the decision driven by financial considerations as well as the need to converge on a single coding tool.

While Claude Code was initially popular among Microsoft employees, the company is now encouraging the use of Copilot CLI instead. This transition may not be easy for engineers who had become accustomed to using Claude Code for coding tasks. Microsoft had considered acquiring Cursor to address gaps in GitHub Copilot, but is now looking at other AI startups to enhance its AI capabilities and avoid regulatory scrutiny.

Despite the transition away from Claude Code, Microsoft will continue to invest in Copilot CLI to integrate it more deeply into its engineering workflows. Feedback from developers will be crucial in shaping the future development of the tool. Microsoft remains committed to using Anthropic’s models through Copilot CLI, and the cancellation of Claude Code licenses will not affect existing agreements with Anthropic.

In other news, Microsoft is testing a new speed boost feature in Windows 11 to improve app launch times and overall responsiveness. The company’s Israel chief is stepping down amid an internal investigation into Microsoft Israel’s work with the Israel Ministry of Defense. Additionally, Discord is offering a free Xbox Game Pass “starter edition” for Nitro subscribers through its new Nitro Rewards program. Access to download over 50 games on PC and Xbox, along with 10 hours of Xbox Cloud Gaming streaming monthly, are included in Nitro Rewards. Additionally, members can enjoy discounts on Logitech and SteelSeries gear. This bundle from Xbox is especially attractive for Discord Nitro members, as there are no extra costs involved.

Forza Horizon 6 has been leaked and cracked a week before its official release date. Playground Games is gearing up to launch the next installment of the Forza Horizon series, but the game somehow appeared online prematurely with a crack for local gameplay. It is unclear how the leak occurred, as Playground Games denies any pre-load issues or unencrypted versions on Steam being responsible.

Microsoft expressed concerns that OpenAI might switch to Amazon and criticize Azure. Communications between Microsoft executives and OpenAI during their early partnership shed light on these worries. Microsoft CTO Kevin Scott was particularly worried about not funding OpenAI in 2018, fearing negative PR consequences if they were to move to Amazon and speak poorly of Azure. While this scenario did not play out, OpenAI did mention restrictions due to their deal with Microsoft when it comes to enterprise partnerships.

A potential new Xbox UI was teased by Microsoft recently, showcasing a more consistent design across different devices. The Xbox console homescreen and PC app have been updated to reflect this new UI, emphasizing a user profile in the top right corner and fewer ad slots along the bottom. This new UI hints at Microsoft’s efforts to enhance user experience across various platforms.

Microsoft plans to reveal more details about Xbox Project Helix later this year, promising new ways to play classic Xbox games. Additionally, there are hints that Xbox Game Pass may expand to the Chinese market, as references to “Project Saluki” were found in the Xbox PC app update. The app also mentioned a feature called “Positron” that could enable disc-to-digital conversions for games.

Microsoft’s LinkedIn is undergoing layoffs, affecting approximately 875 roles, as part of organizational changes for future success. Meanwhile, Microsoft’s AI model MDASH has been instrumental in discovering vulnerabilities in the company’s products, resulting in the resolution of 16 CVEs in the latest Patch Tuesday update.

Windows Update will soon automatically roll back faulty drivers, making it easier for users to address driver issues. A new feature called “Cloud-Initiated Driver Recovery” will replace faulty drivers with previously functioning ones through Windows Update, expected to roll out in September.

Microsoft’s Edge browser is introducing a new feature that allows its Copilot AI assistant to extract information from open tabs for easier access and organization. Users can ask Copilot questions, compare products, or summarize articles based on the content of their tabs.

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