Microsoft Abandons Claude Code for Copilot as DeepSeek V4 Pro Pricing Drops to $0.87 per Million
anthropic claude copilot deepseek microsoft openai
| Source: Mastodon | Original article
Microsoft scraps Claude licenses due to high costs. DeepSeek V4 Pro now costs $0.87 per million.
Microsoft has scrapped its internal use of Claude Code, citing runaway token costs, as reported on May 23, 2026. This move comes as Uber has already burned through its 2026 AI budget in just four months. Meanwhile, DeepSeek has announced a 75% discount, bringing its cost down to $0.87 per million, making frontier AI costs seem excessive by comparison.
This development matters because it highlights the escalating costs associated with AI model usage, particularly for large-scale enterprises. As companies increasingly rely on AI-powered tools like Claude Code, the financial burden of token costs can quickly add up. Microsoft's decision to abandon Claude Code in favor of Copilot suggests that even tech giants are feeling the pinch.
As the AI landscape continues to evolve, it will be interesting to watch how companies navigate these costs and whether alternative solutions like DeepSeek's discounted offering gain traction. With Anthropic preparing to release its Mythos 1 model for Claude Code and Security, it remains to be seen how this will impact the market and whether Microsoft's decision will prompt other companies to reevaluate their AI strategies.
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