Microsoft Ends Claude Code Licenses As It Pushes Copilot CLI

Microsoft Ends Claude Code Licenses As It Pushes Copilot CLI

By Jon Markman
Publication Date: 2026-06-01 17:01:00

Microsoft Moves Away From Claude Code With In-House Coding Model.

This week, at its Build developer conference in San Francisco, Microsoft will show off a coding model it built itself. The model is aimed at one product: GitHub Copilot. For two years Copilot was the default AI coding assistant. It was the early leader, the tool that shipped bundled with the platform most of the world’s developers already use. Then it lost. In the nine months after Anthropic released Claude Code in May 2025, developers moved. Claude Code rose to the top of AI-assisted coding, and in one large developer survey nearly half of respondents named it a favorite. The incumbent got overtaken.

Here is the part worth slowing down on….