Microsoft AI Chief Calls Anthropic Models Too Expensive

*Microsoft’s AI leadership has concluded that Anthropic’s offerings cost too much and is directing resources toward cheaper models built inside the company.*

The company’s AI chief stated that Anthropic models exceed acceptable price levels. Work is now underway on lower-cost alternatives developed internally.

This move follows ongoing reliance on external model providers for certain workloads. Internal teams have been tasked with reducing those expenses through custom training and optimization.

No additional details on timelines, specific cost figures, or model performance targets were released in the report.

Why it matters

Microsoft has long mixed its own models with those from partners. A public declaration that one partner’s pricing is unacceptable signals tighter control over spend and a willingness to duplicate capabilities rather than pay premium rates. The decision will affect teams that currently route traffic to Anthropic endpoints and may accelerate similar reviews of other external providers.

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Sources:

• Bloomberg Technology

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