Microsoft Ends Claude Code Experiment
Microsoft has decided to cancel most of its Claude Code licenses, ending an internal experiment that began in December. Thousands of Microsoft developers had been using Anthropic's AI coding tool, but the company is now pushing them toward GitHub Copilot CLI, a command-line version of its own coding assistant. The decision affects the Experiences + Devices team, which handles Windows, Microsoft 365, Outlook, Teams, and Surface. Engineers are being told to transition their workflows by the end of June.
According to internal sources, the move is driven by two main factors: a desire to converge on a single agentic command-line interface tool (Copilot CLI) and financial considerations. The June 30 cutoff aligns with the end of Microsoft's fiscal year, making license cancellations an easy way to reduce operating expenses. Rajesh Jha, executive vice president of the Experiences + Devices group, stated in a memo that Copilot CLI allows Microsoft to shape the product directly to its own repos, workflows, and security needs.
Claude Code had become highly popular among Microsoft employees, including project managers and designers who used it to prototype ideas. Some teams even preferred it over Copilot CLI, creating an internal rivalry. Despite the cancellation, Anthropic's models will remain accessible through Copilot CLI, alongside Microsoft's internal models and OpenAI's offerings. The Foundry deal with Anthropic is not affected.
The transition won't be easy. Microsoft had encouraged non-coders to experiment with Claude Code, and many engineers now face a gap in functionality. The company is reportedly looking at acquiring AI startups to bolster Copilot's capabilities. Feedback from Microsoft engineers will be used to improve Copilot CLI before the cutoff.
Windows 11 Gets a Speed Boost
Microsoft is testing a new "Low Latency Profile" feature in Windows 11 that improves app launch times and makes the Start menu feel more responsive. It ramps up CPU frequencies in short bursts, similar to what Linux and macOS do. Scott Hanselman, vice president of technical staff, defended the change, noting that smartphones already use this technique and that it is not cheating. The feature is expected to roll out widely later this year.
Microsoft Israel Chief Departs Amid Investigation
Alon Haimovich, Microsoft's general manager for Israel, is stepping down after four years. Reports indicate his departure is linked to an internal investigation into Microsoft Israel's work with the Israel Ministry of Defense. Last year, Microsoft blocked some cloud and AI services for the Israeli military following revelations of mass surveillance of Palestinians.
Discord Nitro Rewards Include Xbox Game Pass
Discord is launching a Nitro Rewards program that bundles a free Xbox Game Pass "starter edition." It includes access to over 50 games on PC and Xbox, plus 10 hours of monthly cloud streaming. Subscribers also get discounts on gaming gear from Logitech and SteelSeries. Netflix recently hinted at a similar Game Pass partnership.
Forza Horizon 6 Leaks Before Release
Playground Games' upcoming Forza Horizon 6 has leaked online a week ahead of its scheduled launch. A cracked version appeared on torrent sites, leading to speculation about a Steam pre-load issue. Playground Games denied that the leak was due to a pre-load problem, though the exact source remains unclear. The game is one of the most anticipated racing titles of the year.
Insights from Musk v. Altman Trial
The ongoing legal battle between Elon Musk and Sam Altman has revealed internal Microsoft communications from 2018. Kevin Scott, Microsoft CTO, expressed concern that failing to invest in OpenAI could lead to the startup partnering with Amazon and publicly criticizing Azure. The renegotiated deal now allows OpenAI to bring its models to AWS, Microsoft's biggest cloud rival.
Xbox UI Redesign Teased
Microsoft has shown a glimpse of a unified Xbox UI designed for handhelds, consoles, and cloud gaming. A recent video highlighted a redesigned homescreen with a user profile in the top right and three ad slots instead of four. The Xbox PC app also resembles the cloud gaming interface. While the image may be a mockup, it signals Microsoft's ambition to create a consistent experience across devices.
Project Helix Details Coming Later This Year
Microsoft's next-generation Xbox, codenamed Project Helix, will be discussed in more detail later this year. However, it is unlikely to be a focus during the upcoming Xbox showcase. The company has previously mentioned exploring new ways to play classic Xbox games, which may tie into the next-gen plans.
Xbox Game Pass Expansion to China
References to "Project Saluki" in the Xbox PC app suggest Microsoft is preparing to bring Game Pass to China. The codename is described as a "China market expansion for Game Pass, Rewards, and subscription tiers." Another codename, "Positron," hints at a return of the disc-to-digital conversion feature, which was abandoned years ago due to backlash from publishers.
LinkedIn Layoffs Continue
Microsoft is cutting approximately 5 percent of LinkedIn's workforce, or about 875 roles. The layoffs were confirmed by a LinkedIn spokesperson as part of regular business planning. This follows earlier rounds of job cuts across various Microsoft divisions.
AI Model MDASH Discovers Security Vulnerabilities
Microsoft's MDASH multi-model agent has achieved top scores on the CyberGym security benchmark. The AI discovered 16 vulnerabilities in Microsoft's own products, which were patched in the latest Patch Tuesday update. The name MDASH is a playful but serious addition to Microsoft's AI lineup.
Windows Update to Automatically Roll Back Faulty Drivers
A new "Cloud-Initiated Driver Recovery" feature will allow Windows Update to automatically replace faulty drivers with previously working versions. Expected to launch in September, it aims to reduce the hassle of manual driver uninstallation and make updates less disruptive.
Edge Copilot Now Analyzes All Open Tabs
Microsoft is updating Edge's Copilot assistant to gather information from every open tab. Users can ask questions about tab content, compare products, or summarize articles. The Copilot Mode is being phased out in favor of a simpler toggle for these AI-powered features.
Source: The Verge News