Meta and Microsoft are reportedly cutting employees’ Claude usage to reduce costs (and push their own AI tools.)

The Information reports that Microsoft cut its projected annual spending on internal Anthropic usage by more than a third, after earlier estimates put it at at least $1 billion.

At Meta, Claude Code users fell from roughly 60,000 to 30,000. Layoffs contributed, but the report identifies the push toward Meta’s own coding tools as the bigger factor.

Keep in mind: those news will be calculated for Anthropics upcoming IPO.