Meta and Microsoft shift internal AI usage to cut costs

Meta and Microsoft have instructed employees to reduce reliance on Anthropic's Claude AI model to cut costs, while promoting their own internal tools. Microsoft had previously estimated annual spending on Claude could reach $1 billion, but recent budget cuts have reduced this by over a third. The shift primarily affects internal use, not external client services, as Microsoft continues offering Claude through its enterprise cloud platform. Meanwhile, Meta has cut internal Claude Code users from 60,000 to 30,000, partly due to layoffs and the push for its own tools like MetaCode and Muse Code. Muse Code, now in external testing, has over 6,000 internal users. Despite reduced usage, Meta's spending on Claude Code in the past 28 days exceeded $1.05 billion. Anthropic's IPO filing revealed that two major clients, likely Meta and Microsoft, account for about 25% of its revenue, though most large clients lack long-term contracts.