Microsoft is preparing to end most internal use of Anthropic’s Claude Code, with engineers being directed to move their workflows to GitHub Copilot CLI instead.
According to reports, Microsoft employees have been given until June 30, 2026, to remove Claude Code from their internal development workflows. The deadline comes as the company pushes wider use of its own coding tool across engineering teams.
Microsoft moves developers toward Copilot CLI
Microsoft had reportedly expanded access to Claude Code in December, allowing thousands of employees to test AI-assisted coding workflows. Employees were also able to use Claude Code and GitHub Copilot CLI side by side during the internal rollout.
The rollout reportedly included developers, project managers, and designers. Some employees with limited coding experience reportedly used it for rapid prototyping.
Claude Code had gained traction inside Microsoft, including among developers who reportedly preferred it over Copilot CLI. The tool was also used by some non-engineering employees after Microsoft encouraged wider internal testing.
The change is reportedly already underway in Microsoft’s Experiences + Devices division. The group includes teams working on Windows 11, Microsoft 365, Outlook, Teams, and Surface. Engineers in the division are reportedly being encouraged to move their workflows to Copilot CLI ahead of the planned cutoff.
AI coding tools bring access and usage controls into focus
Stack Overflow’s 2025 Developer Survey points to wider use of AI tools in software development. The survey found that 84% of respondents were using or planning to use AI tools in their development process, while 51% of professional developers said they used them daily.
In large software teams, AI coding tools can involve decisions around access, model availability, security controls, and usage tracking.
Microsoft has not publicly given a full explanation for the internal licensing change. The June 30 deadline falls at the end of Microsoft’s fiscal year. GitHub, which Microsoft owns, is the platform behind Copilot CLI.
The Verge reported that Microsoft has framed the move internally as an effort to standardise Copilot CLI as its main command-line AI coding tool. Copilot CLI brings GitHub Copilot into terminal-based workflows, extending AI coding support beyond development environments such as Visual Studio Code.
GitHub adds more Copilot usage visibility
GitHub has also expanded Copilot usage reporting for enterprise customers. On May 14, it said its Copilot usage metrics API now allows enterprise administrators and organisation owners to produce team-level metrics. The data covers active users, completions, chats, language, IDE, feature, and model.
The data allows large engineering organisations to monitor Copilot usage across teams and tools.
Rajesh Jha, Microsoft’s executive vice president, said Claude Code had played a role in the company’s internal learning around AI coding tools. He also said Copilot CLI gives Microsoft a product it can shape more directly with GitHub. That includes closer alignment with Microsoft’s repositories, workflows, security expectations, and engineering needs.
Jha’s comments point to Microsoft’s ability to adapt Copilot CLI around its repositories and security requirements. He also said the product can be shaped directly with GitHub for Microsoft’s engineering needs.
Claude models remain in Microsoft’s AI stack
The decision does not mean Claude models are being removed from Microsoft’s AI tools altogether. Claude models will remain available through Copilot CLI.
Microsoft has also expanded its work with Anthropic beyond developer tools. Claude models have been added to some consumer-facing Copilot and Microsoft 365 features.
Microsoft has been closely associated with OpenAI through years of investment and product integration. Anthropic models are also available in some Microsoft products. Internally, engineers are being directed toward GitHub Copilot CLI.
GitHub Copilot CLI is now expected to become the main command-line AI coding tool for Microsoft’s internal engineering teams. The tool gives developers coding assistance from the terminal and connects more closely with Microsoft’s existing GitHub-based development infrastructure.
(Photo by Rubaitul Azad)
See also: AI coding CLIs face TrustFall risk from one-click MCP server execution
Want to dive deeper into the tools and frameworks shaping modern development? Check out the AI & Big Data Expo, taking place in Amsterdam, California, and London. Explore cutting-edge sessions on machine learning, data pipelines, and next-gen AI applications. The event is part of TechEx and co-located with other leading technology events. Click here for more information.
DeveloperTech News is powered by TechForge Media. Explore other upcoming enterprise technology events and webinars here.