Microsoft canceled its internal Claude Code licenses after token-based billing made the cost untenable
Microsoft began canceling internal Claude Code licenses, giving thousands of developers in its Windows, Microsoft 365, Teams, and Surface organizations until June 30 to switch to GitHub Copilot CLI.
Microsoft's official framing is strategic consolidation. The Decoder, Windows Central, and others report that cost was the actual driver, and the June 30 deadline lines up with Microsoft's fiscal year end. Claude Code had been popular internally since December.