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Microsoft Drops Most Internal Claude Code Licenses as Enterprise AI Cost Crisis Deepens
Microsoft began revoking internal Claude Code licenses for most employees on May 14 with a June 30 deadline, marking the clearest enterprise AI spending pullback of 2026. Uber burned through its entire $3.4B 2026 AI budget in four months after deploying Claude Code to 5,000 engineers at $500-$2,000/month per engineer. AI software prices across the US climbed 20-37%, and FinOps teams managing AI spend doubled from 31% to 63% in one year. Engineers are being redirected to GitHub Copilot CLI.
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