Microsoft is cutting Claude Code licences inside its core product teams. The reason is not strategy. It is the bill. The end of the AI coding experiment has arrived?
Too expensive to run profitably + efficient models undermine the SaaS model + Chinese tech is always threatening to surpass them for a fraction of the cost. Even if they try to gatekeep efficient and local models, deepseek is right there.
Deepseek can be blocked trivially on national security grounds. Trivial in comparison to gatekeepibg local models because that’s just data that’s already out there.
Too expensive to run profitably + efficient models undermine the SaaS model + Chinese tech is always threatening to surpass them for a fraction of the cost. Even if they try to gatekeep efficient and local models, deepseek is right there.
Deepseek can be blocked trivially on national security grounds. Trivial in comparison to gatekeepibg local models because that’s just data that’s already out there.