# Microsoft makes GPT-5.6 default internally, cuts Claude usage

2026-08-06T23:40:51+00:00 | Technology | Indian Opinion Desk

Corroboration: 1 independent outlet

Microsoft has told its engineers to stop using Anthropic's Claude as the default AI model for coding and switch to OpenAI's GPT-5.6. An internal memo from executive vice president Jay Parikh, first reported by 404 Media, also set AI token budget targets for every division. Many engineers were spending hundreds to thousands of dollars a month on tokens. The company had already cancelled most Claude Code licences in May. Parikh said the goal is "more impact per token" and that frontier models should not be used for simple tasks. CEO Satya Nadella had earlier called himself a "tokenmaxxer" and called the habit addictive.

## Coverage

- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/technology/tech-news/after-telling-employees-to-stop-using-claude-code-microsofts-internal-memo-has-more-bad-news-for-anthropic/articleshow/132980368.cms>
- timesofindia.indiatimes.com <https://timesofindia.indiatimes.com/technology/tech-news/microsofts-top-ai-boss-has-a-message-for-engineers-using-github-copilot-your-token-spend-is-now-being-tracked/articleshow/133046474.cms>

Tags: AI spending, Anthropic, GitHub Copilot, Microsoft, OpenAI
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