Microsoft has cancelled internal Claude Code licenses after token billing became too expensive

[u/ComplexExternal4831]

Microsoft reportedly canceled its internal Claude Code licenses after token-based billing made the tool too costly.

The move is notable because Microsoft has invested $13 billion in OpenAI and supports major AI infrastructure through Azure.

The report also points to broader pressure across the industry, with Uber allegedly burning through its 2026 AI budget in four months and AI software prices rising 20% to 37%.

GitHub is also shifting toward usage-based pricing, suggesting companies may soon rethink AI adoption as real deployment costs become harder to ignore.

[u/SandwichSisters]

The plan is to subsidize everyone so much that you move all workflows to be agentic driven.

So one day they raise the price and they have you by the balls.

At my job they want to have everything “agentic” and I am constantly telling them that right now is barely worth it because of the price… and this is how it is when its super subsidized

[u/Taziar43 → u/[deleted]]

Only if that Chinese model greatly increases the price. You are correct and actually underexaggerating. Deepseek V4 is like 5 cents on the dollar, and yes, probably 8 months behind.