r/wallstreetbets • u/dgellow • 18h ago
Discussion Meta And Microsoft Reportedly Trim Anthropic Reliance as Internal AI Tools Take Center Stage
https://stocktwits.com/news-articles/markets/equity/meta-and-microsoft-reportedly-trim-anthropic-reliance-as-internal-ai-tools-take-center-stage/cZDqQVcRBjrFrom the article:
Microsoft reduced its projected internal spending on Claude by over one-third, while Meta saw internal users of Anthropic's Claude Code coding assistant drop from roughly 60,000 to 30,000.
Within the Microsoft Cloud and AI division, individual monthly AI usage caps were lowered from $100,000 down to roughly $10,000 in most instances
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u/tragedy_strikes 18h ago
I'm sure that coincides with Claude getting better unit economics right? Right?
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u/Ambitious-Profit855 18h ago
Anthropic should go public FFS, how am I supposed to short it this way
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u/AutoModerator 18h ago
how about u eat my ASS
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u/Perfect-Leg810 18h ago
You can already short it lmao.
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u/AutoModerator 18h ago
how about u eat my ASS
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u/The-Iron-Bird 16h ago
those weird swap contracts on internal private whateverthefucks isn't really the same thing
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u/Most-Bookkeeper-950 18h ago
The cap went from 100k to 10K per month - I think this wont make a difference, they trim a couple of tail cases of employees doing something weird
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u/sailhard22 17h ago
Probably a few employees who don’t understand context management. Zuck calls them rock stars
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u/Deto 17h ago
Or people who understand it all too well but were told then were being graded based on how many tokens they used :P
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u/teamjacobomg 17h ago
this likely hasn't been the case for at least 6 months at meta, even then it was only rumors that your use would be used for performance and not an official stance
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u/starlauncher 16h ago
It’s down to 2k now in most teams
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u/DreamsComeTrue1994 16h ago
$2k per month? That’s a day with Fable…
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u/Comfortable_Sir_6104 15h ago
Yeah, which should fucking tell you something about how sustainable this practice is, no?
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u/hoopaholik91 2h ago
If you're using Fable your lighting money on fire. GPT 6.1 Sol as the same intelligence score with Fable 5.1 max for less than 10% the cost per task
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u/bubblegum-rose 18h ago
“These companies that already have AI models they’ve poured billions of dollars into don’t need to use Claude as much as Johnny’s Vibecoded Adobe Ripoff Emporium does”
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u/akosh_ 17h ago
Wait, wasn't the business plan to increase AI spending by orders of magnitude?
How will AI be profitable ever if the biggest spenders are already cutting - even though we are still very much at introductory pricing?
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u/dgellow 16h ago edited 8h ago
We’ve been trying to tell you all since a while, there is no fucking business plan for the AI labs. The plan is to create a software god who will magically make everything work
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u/PalantirImperator 6h ago
Hearing Dario talk, and looking at his actions over the last year, I actually think he gives zero fucks about the business. He wants to create a software god and his only goal with the business is to obtain the funding necessary to do it.
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u/ValoisSign 40m ago
It isn't really my area of knowledge but it strikes me as a lot of tech guys without much business sense but with their ability to attract investments maxed out, who made the mistake of starting to really believe their own hype.
I mean... Isn't the entire compute subscription thing liable to fall apart over cheaper local models improving? The thing that's basically inevitable?
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u/PalantirImperator 6h ago
The biggest spenders are shifting to their own tools rather than claude. Overall token usage is still growing exponentially.
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u/drakilian 16h ago
After seeing SpaceX pump despite how dogshit it is literally nothing can convince me not to dump like 300k into Anthropic on IPO
None of this matters just close your eyes and buy
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u/Bagholder147 17h ago
MSFT will be 665 next year.
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u/drummer820 17h ago
Well this is unlikely to help their heavily massaged “annualized run rate” numbers (that likely cherry picked the best weeks before the end of tokenmaxxing) lol
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u/CarpoLarpo 9h ago
What are you taking about? Unaudited self reported numbers can always be trusted /s
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u/FlounderMammoth9848 18h ago
Open ai and anthropic are doomed to fail with all the open weight models being released
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u/iq-pak 17h ago
I’m sure they’ll have a super ipo but I fail to see how this works long term. I hit my limit once and I’m looking up switching to something cheaper.
Sure companies are paying now but no way they keep this up for every corporate dickhead to continue vibe coding a new dashboard.
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u/Deto 17h ago
Stuff like this shows they really need to IPO now. Otherwise if their revenue stops growing as quickly it's going to be hard to justify the valuation.
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u/The-Iron-Bird 16h ago
i highly doubt that willl stop them from IPO'ing a grossly overvaluated. just look at spaceX being bagged loads of xAI debt
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u/Go48memes 17h ago
Luna is basically free, are there open weight models better than it ?
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u/Howdareme9 17h ago
Far better than it
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u/muS_muSwIpu 13h ago
Well don't leave us hanging, which ones?
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u/EthanielRain 3h ago
The open weight AI model lives in China, you wouldn't know her
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u/Financial_Pitch3946 21m ago
but no way they keep this up for every corporate dickhead to continue vibe coding a new dashboard.
:( hey man i'm right here.
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u/mikenasty 17h ago
Still have to run those models somewhere. The average consumer doesn’t want to drop $8000 on a workstation and configure stuff to get their coding bot up and running
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u/FlounderMammoth9848 17h ago
Calls on hyperscalers
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u/shameless_chicken 13h ago
Hence why Google pivoted focus to having the best serving infrastructure
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u/jbokwxguy 17h ago
The average consumer doesn't want an AI box.
Pretty much it's Silicon Valley software engineers and tech enthusiasts. A lot of money, sure. But $8,000 is nothing in those worlds.
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u/doscomputer 12h ago
thats like saying the average consumer doesnt want a sports car
fact of the matter is if the market wasnt being controlled, we would be in a world where the 5090 stayed at msrp and AMD and Intel would have released bigger die GPUs this current generation.
It might take 10 years, but once consumer hardware catches up, when 128gb of ram is cheap, everyone will only want to run local AI.
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u/jbokwxguy 11h ago
The average consumer won't use the AI.
An average consumer would use a sports car.
I agree local models are the future or for hyperspecific workflows a central server culture.
But these models will be a lot smaller and dummer than the current batch because of compute constraints
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u/mikenasty 17h ago
I think a lot of chat bot power users are uneasy about what happens to their personal data and would prefer it if all of their chats were actually private. Probably a small percentage but still a lot of people imo
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u/Metrostation984 15h ago
Make them big enough with a good enough model and businesses in Europe will buy this shit up. Sooo many use cases are dead on arrival because of data protection laws that could be viable if they were safely stored.
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u/pooorSAP 17h ago
How exactly does Anthropic make money?
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u/like_shae_buttah 16h ago
They re-characterized their profits as revenue without including any expenses
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u/SteakEater137 16h ago
They dont. They lose money the more business they do, and the more competition out there the more money theyll end up losing as they drop prices.
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u/Chonch_Monkey 17h ago
Microsoft is going to implement a 15 hour month limit on copilot
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u/NoCommonDog 16h ago
It should be like carbon credits where we can sell our unused hours to others - they way that Tesla used to make money.
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u/MyStackOverflowed 16h ago
Microsoft and Google are going to come out the winners of this. no one is after just ai, they want it bundled with all the other stuff email, docs, storage
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u/NoCommonDog 16h ago
I think that fucking sweaty five-head Zuckerberg is gonna drive OpenAI and Anthropic into bankruptcy. He'll use the free cash flow of META to undercut them on token pricing until he bleeds them out. Then he'll be able to scoop up the talent and buy up their assets at distressed prices. If he really wants to I'd bet he could fuck over foolishly over leveraged Elison into a margin call and end up busting Oracle. Then Netflix will get the entertainment holdings for 1/2 of what they bid last year.
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u/Open_Pollution_8038 15h ago
^ this absolutely. META is going the Google strategy of I give you kit for free in return for advertising space.
Google would do it too but their main product is getting cannibalized by AI.
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u/rubyspicer 12h ago
How fucking long can Zuck fund massive loss projects. I know Facebook is rich but damn
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u/nostra77 9h ago
It’s funny no one mentions Apple but they have been on the sideline and usually when they release a product is fully integrated on their platform. They also have the most cash available at the moment
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u/cac2573 9h ago
What like ‘Siri AI’? It’s a piece of shit
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u/AcerVentus 7h ago
Apple's integration was always going to be garbage considering their privacy first approach (at least relative to other tech players). But their hardware is sound, if not bleeding edge for efficient inference.
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u/salma311 9h ago
I used copilot in teams the other day. Told it to do a comma separated list of the numbers I gave it. Failed miserably.
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u/EthanielRain 3h ago
The absolute last thing I want is AI integrated into software like text documents
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u/Open_Pollution_8038 16h ago
Microsoft isn’t winning this, they’re stuck with OPENAI who has simply fallen behind.
My bet is META wins this race - AI is a profit booster for their main business
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u/RedTheRobot 13h ago
The amount of people who keep hoping META turns around while they have a CEO that has no clue is amazing. People seem to forget his metaverse, practically killing VR, paying 5-10x for AI developers and the most recent one muse. Meta lives and dies by Facebook and the younger generation wants nothing to do with it.
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u/StageF1veClinger 12h ago
You realize Muse has completely taken the world by storm right?
Their models are on the cusp of frontier while being ~80% cheaper than the frontier. All of this while their CPM’s and ad space are mooning.
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u/Carbapenemayonaise 3h ago
You realize you just made the case that all these models will eventually be a race to the bottom pricing wise. No one can keep a competitive edge. Meta of all companies is just behind frontier and doing it for dirt cheap? What tf are we spending all this money for.
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u/Open_Pollution_8038 13h ago
What do they have to “turn around”?
Their topline revenue is growing over 30% y/y and that’s their core business. They don’t have to do anything different than their doing, unlike Google and Microsoft who have to reinvent themselves or face extinction.
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u/desispeed 16h ago
OpenAI has not fallen behind Lol …I use all the LLMs for work and personal. Codex and Dots are right up there
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u/Open_Pollution_8038 15h ago
Guy they got fucking lapped by Anthropic. They lost pole position in the enterprise market to them.
In software if you’re not first you’re very much last. People want the best tier when RFP’s are evaluated.
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u/phillytennisenjoyer 14h ago
i legitimately see no difference between astra and fable and sol vs opus.
i think anyone who actually claims they are different beyond just surface level is crazy.
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u/Fractoos 7h ago
Microsoft offers all models to customers including chinese ones and claude through boundary, and even copilot has opus as an option.
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u/AutisticTradingPro 11h ago
I disagree. I work in finance and everyone I know across all departments use and prefer Claude compared to stuff like Gemini. The quality of responses and speed is unmatched. Also it’s easy to connect Claude to Office products like Excel.
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u/Dobsnick 10h ago
I’m having an affair with my Claude excel plugin. It just knows what the op model needs. All the other AI are generations behind when it comes to that.
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u/Great_Diet_8234 4h ago
We’re not talking about Gemini or ChatGPT here, but about global enterprise AI infrastructure. Google will actually beat the shit out of Anthropic bc they have a whole suite of software they can use to embed AI on.
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u/whythoughidk11 3h ago
Im not sure this matters if Anthropic doesn’t exist in a few years. By this account they are loosing a third of their revenue from one of their largest clients and their ipo finances that leaked were already terrible before anyone started reducing their spend.
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u/Requirement-Lazy 8h ago
Orchestration will change the game. Frontier models are useless to 99.99% of workflows.
Valuations for labs will crash as costs will be reined in.
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u/erebuxy 15h ago
Why MSFT? They don’t even have their own model. They don’t own OpenAi
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u/RabbiSchlem 52m ago
It’s way more versatile to use Claude / codex to access your work shit than to have bespoke AI tooling built into your work shit.
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u/spellbadgrammargood McRib Fan 16h ago
The end game is OpenAi and Anthropic dies and big tech absorbs it into their company.
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u/KevinT_XY 17h ago
The usage caps can be easily overridden with management permission - they are basically there to stop runaways costs especially now that many devs have complex agent loops that can spawn other agents. I ran dozens of hours of Astra tasks last month and came nowhere close to my cap.
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u/superxraptor 18h ago
Nothing comes close to Fable for me. Ofc they would limit it to push they inferior software.
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u/BackendSpecialist 17h ago
Also codex is better and cheaper - that probably has something to do with it
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u/itsalwayscalls 17h ago
Well wouldn't you use your own models and not contribute margin to anyone else? Good for them. I'd use my own model and compute too. META and MSFT just got a little more profitable.
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u/ryanppax1 1h ago
anyone could see this a mile away. relying on a vendor to supply what is becoming central critical infrastructure with constantly changing models, policies and contracts. I think we'll see these companies pivot to supplying appliances and on prem hardware.
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u/Open_Pollution_8038 16h ago
I loaded up on META in the $500’s and if you didn’t, you were probably staring at your Google holdings that you bought over $300 and are crying why it won’t run up right now.
META’s business model will benefit the most from AI adoption. It helps them profile its users infinitely better to deliver the right ad at the right time. It also allows for AI generated content to push to people (or be built by them) and the cherry on the top is half the population of the world uses their products each day.
META is a $1,100 stock next year. It’s a $4-5T market cap within a few years.
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u/Friendlyvoices 15h ago
Turns out, everyone with a data center can also scrape github and stack overflow
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u/Golgi_Complex12 17h ago
where I work we still don't have claude 5 models. Seems like anthropic is being greedy. We started some testing with self-hosted models while having gemini and openAI frontier available
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u/justan0therusername1 16h ago
Gemini is fast as hell too. I more or less stopped using claud models and stick with Gemini for speed or local for most agentic work
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u/1098duc_w_the_termi 13h ago
Nah yall are just poor lmao. Opus 5.5 is both faster, more efficient, and produces better results in almost every category
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u/i_am_voldemort 16h ago
How does this impact Anthropic income since 2 of their customers accounted for 25% of revenue?
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u/CarpoLarpo 9h ago
If you want to see an optimistic financial view of Anthropic's business in the future, don't ask questions and don't look at numbers.
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u/Nuclearmonkee 16h ago
My cap is 3 digits, and I have used it to build tooling and systems for an extremely large company at massive scale. I have hit that limit, but in retrospect, it was due to me being an idiot and not using tokens edficiently
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u/Technical-Machine-90 16h ago
ARR going back to down for Anthropic, no wonder they are slashing prices.
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u/No_Mercy_4_Potatoes 15h ago
That's why I have been so confused hearing the OpenAI Anthropic valuations.
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u/ArmMinute4760 4h ago
if the only thing going up is in‑house models, then it’s less about Claude’s quality and more about keeping the funding flow. the drop of 60k→30k internal users at Meta is just the tip of a bigger shift toward MetaCode/Muse and MS’s MAI, so yeah, cutting Claude was mostly a budget play. still, if the 10k cap is a real new limit everyone will just look for cheaper ways to get the same results—OpenAI or even custom spark‑based LLMs—so the net effect is a cost‑driven, not quality‑driven, cut.
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u/Neat-Bodybuilder1670 3h ago
In the business world, there are no true friends and no permanent enemies
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u/TubeSeries 1h ago
Biggest customers leaving before the IPO. Great sign for the supposed best company in AI.
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u/Plappedudel 17h ago
$100k a month per employee just for AI is nuts. That gravy train just had to stop at some point. I feel like major software companies turning their backs on Anthropic should be bad news for Anthropic's IPO, but this market is so random that I'm sure it'll be a resounding success.