# Microsoft cancels thousands of Claude Code licenses in Experiences+Devices division, shifting engineers to GitHub Copilot CLI by June 30 deadline

_Tuesday, June 30, 2026 at 6:48 PM EDT · Tech & Business · Latest · Tier 2 — Notable_

![Microsoft cancels thousands of Claude Code licenses in Experiences+Devices division, shifting engineers to GitHub Copilot CLI by June 30 deadline — Primary](https://imageio.forbes.com/specials-images/imageserve/6a1dba67cffc937e1f88031b/0x0.jpg?format=jpg&height=900&width=1600&fit=bounds)

Microsoft is ending Claude Code licenses within its Experiences and Devices division and moving those engineers onto its own GitHub Copilot CLI by June 30, the company said in its shift toward in-house AI coding tools.

In December, Microsoft let thousands of its own engineers use Anthropic's Claude Code on the company's budget, and inside the Experiences and Devices group it became the preferred tool, Forbes reported. But Claude Code is priced by the token, the engineers used it heavily, and the costs ran past the annual AI budget months ahead of schedule, according to the report.

Microsoft is winding down the licenses by June 30 and moving those engineers onto GitHub Copilot CLI. The decision was driven by cost and a desire to reduce dependence on a rival's product, Forbes reported.

The move coincides with Microsoft's Build developer conference in San Francisco this week, where the company is showing off a new coding model built for GitHub Copilot. Under executive Mustafa Suleyman, the company has spent the past year pushing toward self-sufficiency in AI, building a family of in-house MAI models to depend less on external partners for the intelligence inside its products, according to Forbes.

## Sources

- [Forbes](https://www.forbes.com/sites/jonmarkman/2026/06/01/microsoft-ends-claude-code-licenses-as-it-pushes-copilot-cli/)

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