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Microsoft cuts projected Claude spending by more than a third

Microsoft had been on track to spend at least $1 billion on Claude and is steering staff toward its own models.

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The InformationLead source
Microsoft was on track to spend $1 billion on employees’ Claude use. @aaronpholmes reports how much it pulled back: “It's about at least 33% lower than that peak spending.” Full story:
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Sundar Pichai
Introducing EmbeddingGemma 2, a new open multimodal model that sets the standard for on-device efficiency. - our first open, natively multimodal embedding model - handles text, code, image, video, and audio tasks within a lightweight, modular 740M parameter form factor - ideal for offline, privacy-first RAG when paired with Gemma 4 - outperforms some specialist models more than twice its size Weights available now on Hugging Face.
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Google Gemma
Introducing EmbeddingGemma 2! 🚀 Our lightweight, multimodal embedding model maps text, code, images, video, and audio into a single, unified embedding space. Optimized for on-device use cases, it features: - 740M parameter form factor with modular encoders - Flexible dimension sizes (768dim-128dim) via Matryoshka Representation Learning (MRL) - 8K context window (4x larger than text-only EmbeddingGemma) - A commercially permissive Apache 2.0 license
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The Information
Today on TITV: Meta and Microsoft are cutting back on employees’ Claude use, and Workday’s AI threat isn’t over. Plus, Reflection’s new open-weight model and a look inside DoorDash’s AI playbook. 📺 Tune in at 10 am PT / 1 pm ET:
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The Information
Today on TITV: Meta and Microsoft are cutting back on employees’ Claude use, and Workday’s AI threat isn’t over. Plus, Reflection’s new open-weight model and a look inside DoorDash’s AI playbook.
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Shubham Saboo
What...you can now do multimodal RAG on your phone, fully offline and free. EmbeddingGemma 2 does text search in ~191MB of RAM, or text + image + video + audio in ~567MB. Measured on a Pixel 11 Pro. Open weights under Apache 2.0
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etn.
Luke and Ro covered this on the show today: "Meta and Microsoft, two of Anthropic's biggest corporate customers, are working to cut their employees' use of Claude..." "The number of employees using Anthropic's coding assistant Claude Code has dropped sharply by about [50%] recently." "You say to your mum: 'Mum, can we get McDonald's?' and they say, 'No, we have food. We have food at home.' That's basically the AI version." "We've got coding tools at home, guys. We've got AI-enabled coding tools at home." "We've got Copilot in the fridge."
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The Information
Exclusive: Microsoft was on track to spend at least $1 billion on Claude for its own employees. It has since cut that projection by more than a third, telling staff to use less Claude and spend more time with Microsoft’s own AI tools. Full story:
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How the headline evolved

  1. Microsoft cuts projected Claude spending by more than a third

  2. Microsoft cuts projected Claude spending by more than a third

  3. Microsoft cuts planned $1 billion Claude spend by a third

  4. Microsoft cuts planned $1 billion Claude spend by a third

  5. Meta and Microsoft cut employee access to Claude

  6. Meta and Microsoft cut employee access to Claude Code

  7. Meta and Microsoft cut employee access to Claude Code

  8. Meta and Microsoft cut employee access to Claude

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