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Claude Code spreads fast inside Microsoft teams

Source: theverge.com

TL;DR

Microsoft is rolling out Anthropic's Claude Code tool to thousands of engineers across major teams like CoreAI and Experiences + Devices.
Engineers must use both Claude Code and GitHub Copilot side by side and report comparisons, while 91% of teams already use Copilot.
This tests rivals internally and could lead Microsoft to offer Claude Code to Azure customers despite selling its own Copilot.

The story at a glance

Microsoft has expanded use of Anthropic's Claude Code AI coding tool to big engineering groups, including the division behind Windows and Microsoft 365. Sources inside the company say teams are now told to install it alongside GitHub Copilot for feedback. The push follows months of favoring Anthropic models over OpenAI's in some tools and comes after a November deal giving Foundry customers access to Claude models.[[1]](https://www.theverge.com/tech/865689/microsoft-claude-code-anthropic-partnership-notepad)

Key points

Microsoft began using Claude Sonnet 4 in its developer division in June 2025, then favored it for paid GitHub Copilot users.
CoreAI team, led by Jay Parikh, tested Claude Code recently; last week, Experiences + Devices division got the order to install it.
Business and Industry Copilot teams can use Claude Code across all Microsoft code repositories.
Microsoft spends up to $500 million yearly on Anthropic and counts its model sales toward Azure quotas, per The Information.
November 2025 deal: Anthropic commits to $30 billion in Azure compute; Foundry users get Claude Sonnet 4.5, Opus 4.1, Haiku 4.5.
Claude Code lets non-engineers like designers prototype and commit code, broadening internal AI use.
No formal partnership announced for Claude Code itself; this is an internal pilot to benchmark against Copilot.

Details and context

Microsoft sells GitHub Copilot externally but runs these pilots to stay sharp on competitors like Anthropic and Cursor. Developers compare tools on real projects across over 100,000 repositories. The company still calls OpenAI its main partner but picks the best model per task, such as Claude in some Microsoft 365 Copilot features.[[1]](https://www.theverge.com/tech/865689/microsoft-claude-code-anthropic-partnership-notepad)

Anthropic's Claude Code and related Cowork tools focus on agent-like help for coding and other work, making them easier for beginners than Copilot in tests. This fits Microsoft's multi-model strategy, unlike its heavy OpenAI tie-up. Junior developers face pressure as AI handles more code creation with less oversight.

Rishi Sunak, now advising both Microsoft and Anthropic, recently discussed AI job shifts with CEO Satya Nadella.

Key quotes

“Companies regularly test and trial competing products to gain a better understanding of the market landscape,” Frank Shaw, Microsoft communications chief, said in a statement.[[1]](https://www.theverge.com/tech/865689/microsoft-claude-code-anthropic-partnership-notepad)
“OpenAI continues to be our primary partner and model provider on frontier models, and we remain committed to our long-term partnership.” Frank Shaw.[[1]](https://www.theverge.com/tech/865689/microsoft-claude-code-anthropic-partnership-notepad)

Why it matters

Microsoft's internal shift signals trust in Anthropic's tools challenging its own AI products and OpenAI's lead in coding aids. Engineers and teams get better options now, while customers might see Claude via Azure if pilots succeed; it also hints at job changes from AI agents. Watch for Copilot updates or sales of rival tools, though Microsoft stresses these are just tests.