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Last year, Microsoft CEO Satya Nadella disclosed that as much as 30% of the company’s code is now generated with the help of AI. More recently, reports suggest Microsoft is scaling back its use of Anthropic’s Claude Code in an effort to steer employees toward its own GitHub Copilot CLI.

According to reporting from The Verge’s Tom Warren, Microsoft initially rolled out access to Claude Code internally in December, giving developers, project managers, and designers the ability to experiment with the AI coding assistant directly within their workflows.

Over the following months, Claude Code quickly gained traction across the company, becoming a widely used tool among employees exploring AI-assisted development.

However, its growing adoption appears to have created internal competition with Microsoft’s own tooling. The company is now reportedly shifting focus back to GitHub Copilot CLI as its preferred AI coding solution.

“While Claude Code proved to be a popular tool, it also created challenges for adoption of Microsoft’s own GitHub Copilot CLI,” Warren noted.

The move reflects Microsoft’s broader strategy to prioritize its in-house AI ecosystem, particularly as competition intensifies in the market for developer-focused AI tools.