Meta and Microsoft Reduce Investment in Anthropic's Claude Amid Competition

Microsoft has reduced its spending on Anthropic's Claude by over a third, dropping its monthly budget from $100,000 to about $10,000. This follows projections that spending could exceed $1 billion annually. Concurrently, Meta's usage of Claude Code has decreased significantly, with users falling from 60,000 to 30,000. In a single 28-day period, Meta's spending on Claude Code surpassed $105 million. These cuts come as both companies reassess their partnerships with Anthropic, which has rapidly evolved into a competitor, prompting concerns from incumbents like Microsoft. The shift is underscored by Anthropic's growing suite of products, including Claude Cowork and ChatGPT Work, which are increasingly viewed as alternatives to traditional office software. This development follows Meta's AI cost-cutting measures initiated in June 2026, indicating a strategic pivot as both firms navigate the competitive landscape of AI tools.