Microsoft drops Claude due to token costs
The era of all-you-can-use AI in the enterprise appears to be ending. Companies are shifting to pay-as-you-go token billing, leading to steep cost increases. US enterprise software prices rose 20-37 percent.
Microsoft shut down a pilot program testing Claude Code for employees. The December 2025 trial covered thousands of staff, but even the tech giant found token fees too high.
Other corporations face similar sticker shock. Uber burned through its 2026 AI budget in four months. GitHub is now abandoning flat fees for usage-based pricing.
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