Now Reading: Microsoft makes GPT-5.6 default internally, cuts Claude usage
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Microsoft makes GPT-5.6 default internally, cuts Claude usage
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…
The Story in Brief
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.
The Indian Opinion
The narrative that Microsoft selling AI while rationing it internally is hypocrisy misses the point. Every big enterprise discovers that unlimited AI access burns cash faster than expected. The real story is not a bubble bursting but a technology maturing. The test to watch: whether other large firms follow Microsoft's token budgets, or whether they keep spending freely. If budgets become the norm, AI pricing models will have to adjust.
Sources (2): timesofindia.indiatimes.com, timesofindia.indiatimes.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
