AI Daily: Microsoft rolling back internal use of Claude Code

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.

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CLAUDE CODE: Microsoft (MSFT) is rolling back internal use of Claude Code after strong adoption among developers, and plans to replace most licenses with GitHub Copilot CLI as part of a broader push to consolidate engineering workflows, while winding down Claude Code usage across major engineering teams by the end of June, The Verge’s Tom Warren reports. According to sources, the decision is financial and not about converging on Copilot CLI as its main agentic command line interface tool across Experiences + Devices.

NEW GEMINI MODEL: Google (GOOGL) is planning to announce a new Gemini model at its I/O conference, with the release expected to land around the class of OpenAI’s GPT-5.5 and short of Anthropic’s Mythos, Alex Heath of Sources reports.

STRATEGIC ALLIANCE: Anthropic and PwC announced an expansion of their strategic alliance, deepening how PwC uses Claude to build technology, execute deals, and reinvent enterprise functions for clients across every industry it serves. “Most enterprises are still running on systems and processes built for a pre-AI world-a drag that is estimated to be more than $2 trillion. Together, Anthropic and PwC are helping companies replace that weight and rebuild around AI,” the companies said. PwC will roll out Claude Code and Cowork starting with U.S. teams and expanding toward a global workforce of hundreds of thousands of professionals. The companies are establishing a joint Center of Excellence and a program to train and certify 30,000 PwC professionals on Claude. The collaboration focuses on three areas of highest leverage: agentic technology build, AI-native deal-making, and reinvention of the enterprise function. PwC is launching a new finance business group built on Claude as the first standalone business unit anchored in Anthropic’s technology. Claude is already running in production across professional sports operations, insurance underwriting, mainframe modernization, HR transformation, and cybersecurity-cutting delivery times by up to 70%.

RESEARCHERS DEPARTURE: More than 50 researchers and engineers have left xAI since the SpaceX acquisition via layoffs, firings, and voluntary departures, with many joining Meta and TML, The Information’s Theo Wayt reports.