Meta and Microsoft Shift Focus to In-House AI Tools

Meta Platforms (META) and Microsoft (MSFT) are scaling back their reliance on Anthropic’s Claude Code as they prioritize their own AI tools. Meta has cut the number of employees using Claude Code from 60,000 to 30,000 this year, though it still spent over $105 million on the service in a recent 28-day period.

Microsoft has also reduced its spending on Anthropic’s AI products by about one-third. The company started cutting back on Claude Code usage in May, directing employees toward internally developed models and software.

Meta is developing alternatives, including Muse Code for external customers and MetaCode for internal use. Microsoft is similarly shifting workloads to its own AI tools while limiting employee access to external services.

The changes come as Anthropic expands its business, with two major customers generating about 25% of its revenue. This highlights the company’s growing dependence on large enterprise relationships.