tech
January 22, 2026
Claude Code is suddenly everywhere inside Microsoft
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TL;DR
- Microsoft is favoring Anthropic's Claude Code internally over its own GitHub Copilot.
- Non-technical employees are being encouraged to use Claude Code for prototyping.
- Microsoft is a major customer of Anthropic and is counting Anthropic AI model sales towards Azure quotas.
- The company has a deal with Anthropic for access to Claude models and Anthropic is committing to significant Azure compute capacity.
- Microsoft is integrating Anthropic's Claude models into Microsoft 365 apps and Copilot.
- The broader adoption of Claude Code could lead to Microsoft selling it directly to cloud customers.
- Microsoft remains committed to OpenAI as its primary partner for frontier models.
- Other Microsoft news includes upcoming Xbox games, a Windows 11 update issue, Xbox Cloud Gaming with ads, data center plans in Wisconsin, Xbox app compatibility for Arm PCs, AI features in Microsoft Paint and Notepad, a GitHub Copilot SDK, and Microsoft sponsoring the Mercedes-AMG F1 team.