Microsoft kills Claude Code licenses and forces its engineers onto Copilot

My take: Microsoft cancelled Claude Code licenses across its Experiences + Devices division, the team behind Windows, Teams, Outlook, and Surface, and gave its developers until June 30 to migrate to GitHub Copilot CLI. The reasoning is half financial, half strategic: Uber burned through its entire 2026 AI budget in just four months on Claude Code and Cursor, and Microsoft can hardly sell Copilot to the world while its own engineers are walking away from it. This is the clearest enterprise AI spending pullback of the year.