Cloudcode suddenly became everywhere within Microsoft


Developers have been comparing the strengths and weaknesses of Anthropic’s Claude Code, Anysphere’s Cursor, and Microsoft’s GitHub Copilot for months, searching for a winner. Although no single AI coding tool is capable of being the best at every task software developers do every day, Claude Code increasingly ranks first in terms of ease of use, both for developers and non-technical users.

Microsoft seems to agree, with sources telling me that the company is now encouraging thousands of its employees from some of its most productive teams to pick up Claude Code and get into coding, even if they’re not developers.

Microsoft first began adopting Anthropic’s Claude Sonnet 4 model within its developer division in June of last year, by His preference is for paid users From GitHub Copilot several months later. Now, Microsoft has gone a step beyond using Anthropic’s AI models and adopted Claude Code more broadly across its largest engineering teams.

Microsoft’s CoreAI team, the new AI engineering group led by former Meta engineering head Jay Parikh, has been testing Claude Code in recent months, and last week Microsoft’s Experiences + Devices division was asked to install Claude Code. This department is responsible for Windows, Microsoft 365, Outlook, Microsoft Teams, Bing, Edge, Surface, and more.

Even employees with no programming experience are encouraged to try Claude Code, to allow designers and project managers to prototype ideas. Microsoft has also approved the use of Claude Code across all of its code and repositories for business and industry Copilot teams.

I’m told that software engineers at Microsoft are now expected to use both Claude Code and GitHub Copilot and provide comparative feedback between the two. Microsoft GitHub sells Copilot as the AI ​​coding tool of choice for its customers, but if these extensive internal pilots are successful, the company could eventually sell Claude Code directly to its cloud customers.

Microsoft is now one of Anthropic’s top customers, according to a recent report from Information. The software maker also counts the sale of Anthropic AI models toward its Azure sales quotas, which is unusual since Microsoft typically only offers incentives to salespeople for on-premises products or models from OpenAI.

Microsoft’s decision to adopt Claude Code more widely among its engineering teams certainly seems like a vote of confidence in Anthropic’s AI tools compared to its own, especially as it encourages non-technical employees to try coding. But the reality is that Microsoft developers are likely to use a mix of AI tools, and adopting Claude Code is another part of that toolkit.

“Companies regularly test and pilot competing products to get a better understanding of the market landscape,” says Frank Shaw, head of communications at Microsoft, in a statement. Notepad. “OpenAI remains our primary partner and model provider on leading models, and we remain committed to our long-term partnership.”

While Microsoft remains committed to OpenAI, it is increasingly working with Anthropic to bring its models and tools to Microsoft’s own teams and the software it sells to customers. Microsoft and Anthropy I signed a deal in November that allows Microsoft Foundry customers to access Claude Sonnet 4.5, Claude Opus 4.1, and Claude Haiku 4.5. The deal also includes Anthropic’s commitment to purchase $30 billion of Azure compute capacity.

Microsoft has also begun to favor Anthropic’s Claude models Inside Microsoft 365 and Copilot apps Recently, its use in Specific applications Or features where Anthropic’s models have proven more capable than their OpenAI counterparts.

The big question here is, what does the increasing use of Claude Code at Microsoft mean for its 100,000+ code repositories? Microsoft told me this last year 91 percent of its engineering teams use GitHub Copilot A variety of teams are using the AI ​​tool to speed up mundane tasks. Microsoft’s use of AI tools has been largely limited to software engineers, but with CloudCode and… Claude CoworkAnthropic is increasingly focused on making programming and non-coding tasks easier, thanks to AI agent capabilities.

Microsoft is embracing the ease of use of Claude Code to allow more non-technical employees to execute code using AI, and this broad pilot program is sure to highlight the challenges and benefits of this shift. It also puts more pressure on junior developer roles, with concerns in the industry that these roles are increasingly disappearing due to AI. Microsoft has just taken another big step into a future where more independent AI agents create code, increasing control over software engineers.

Microsoft is preparing to showcase two of its biggest Xbox games this year. Forza Horizon 6 and mythlater today as part of Xbox Developer Live Stream. There will also be an in-depth first look Reincarnation monster And at least one other game has popped up, I hear. Double Fine is ready for it boast ovena team-based multiplayer brawler game. I know Double Fine has been holding playtests recently, where you play as a spirit that can inhabit pottery and carry water to douse an opponent’s kiln and extinguish a fire.

I wouldn’t be surprised to see that oven Appears as an early preview in the coming months, followed by Forza Horizon 6 In May and later Hala: The campaign has evolved. I keep hearing that it’s both myth and Gears of War: Electronic Day It is currently targeting a release in the second half of this year. Microsoft is keen to launch the new Forza, Gears, auraand myth Games in 2026 mark the 25th anniversary of Xbox.

  • Microsoft’s first Windows 11 update of 2026 has shut down some computers. It’s only January, and Microsoft had to rush an out-of-band emergency fix that took some Windows 11 PCs offline. Issues It’s limited to devices running Enterprise and IoT versions of Windows 11 version 23H2, but it’s another buggy update to Windows, which has become increasingly popular.
  • Microsoft’s free Xbox Cloud Gaming service will soon be available with ads. Microsoft is close to launching a free streaming option for Xbox Cloud Gaming. Ad-supported feature It’s starting to appear Within the Xbox for PC app, stating “one hour of ad-supported playtime per session.” I expect to see this roll out with pre-roll ads in the coming weeks, but there may be limits of up to five free hours per month.
  • Microsoft wants to build 15 data centers in Mount Pleasant, Wisconsin. The empty land formerly owned by Foxconn is about to be transformed In Microsoft data centers. Local village leaders in Mount Pleasant, Wisconsin, approved plans for the data centers earlier this week, and final approval could come next week. A failed Foxconn project in Wisconsin had promised 13,000 jobs, but the land will now be filled by a 1.2 million square foot data center project that will contain hundreds of thousands of Nvidia AI-powered graphics processing units.
  • The Xbox app is now available for all Windows 11 and Arm PCs. After a rocky start with gaming on Windows on Arm, Microsoft has made a move He updated his Xbox app This week, so it’s fully compatible with all Qualcomm-powered devices. More than 85 percent of the Xbox Game Pass catalog is now compatible with Arm-based hardware, but the majority of games will still need to be emulated using Microsoft’s Prism technology.
  • Microsoft Paint now has an AI-powered coloring book. Microsoft is adding more AI features to its Paint app this week. Windows testers can now try Coloring book feature Allows you to create coloring book pages from a text prompt. It’s available inside the Copilot button in Paint, and you must have a Copilot Plus computer to use it. Notepad (the app!) is also getting expanded Markdown syntax features and a new welcome experience to highlight features. I never thought I would see the day when Notepad, a lightweight app, would need a welcome screen because of all the features Microsoft provides.
  • GitHub has a new Copilot SDK. Microsoft announces a technical preview of it GitHub Copilot SDK Today, which brings the power of GitHub Copilot CLI to any application. It essentially allows developers to bring GitHub Copilot capabilities as a programmable SDK for Python, TypeScript, Go, and .NET. Microsoft teams have already used this to create custom GUIs for agents, summarization tools, YouTube chapter generators, and more.
  • Satya Nadella and former British Prime Minister Rishi Sunak speak to Amnesty International. Former leader of the United Kingdom Rishi Sunak He took on the role of senior advisor at Microsoft and Anthropic last year, and has now appeared alongside Microsoft’s CEO Satya Nadella To discuss the future of artificial intelligence. almost 30-minute conversation We didn’t have any surprising news, but Sunak agreed with the Nvidia CEO Jensen Huang “You may not lose your job to AI, but you may lose your job to someone using AI.” Nadella believes that AI will make us all “managers of infinite minds,” just like how we have “information at your fingertips.”
  • Microsoft now sponsors the Mercedes-AMG F1 Team. Microsoft is switching its Formula 1 allegiances from Alpine to Mercedes-AMG for the 2026 season. A New multi-year partnership It will see Mercedes-AMG use Microsoft technologies in its race team operations and affix the Microsoft logo in prominent locations on the 2026 Mercedes-AMG F1 car and on the race liveries. There is a major technical change for the 2026 season, with an all-new chassis, power units and fuel systems.

I’m always keen to hear from my readers, so please leave a comment here, or you can contact me on notepad@theverge.com If you want to discuss anything else. If you hear about any secret Microsoft projects, you can contact me via email at notepad@theverge.com Or talk to me confidentially on the messaging app Signal, where I am tomwarren.01. I’m also Tomwarren on Telegram, if you’d prefer to chat there.

Thanks for subscribing Notepad.

Follow topics and authors From this story to see more like this in your personalized homepage feed and receive email updates.


Leave a Reply

Your email address will not be published. Required fields are marked *