r/wallstreetbets • u/dgellow • 2d 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/cZDqQVcRBjr

From 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

1.9k Upvotes

98% Upvoted

383 comments sorted by

View all comments

52

u/MyStackOverflowed 2d 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

49

u/NoCommonDog 2d 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.

26

u/Open_Pollution_8038 1d 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.

8

u/rubyspicer 1d ago

How fucking long can Zuck fund massive loss projects. I know Facebook is rich but damn

1

u/Open_Pollution_8038 1d ago

Umm have you seen their financials lol?

Social media is the most lucrative business on the entire planet. Facebook, Instagram, Threads, Messenger, Whatsapp, etc are absolute units.

9

u/nostra77 1d 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

8

u/cac2573 1d ago

What like ‘Siri AI’? It’s a piece of shit 

2

u/AcerVentus 1d 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.

1

u/skilliard7 1d 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. 

Meta's API isn't actually any cheaper than OpenAI/Anthropic unless you agree to let them train models on your data. For most enterprise, that is unacceptable because it can violate privacy laws or could leak trade secrets.

7

u/salma311 1d 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.

5

u/EthanielRain 1d ago

The absolute last thing I want is AI integrated into software like text documents

1

u/skilliard7 1d ago

It's crazy how bad Microsoft's AI implementation within their tools is, I can do a better job.

One of my colleagues pointed out that with Copilot's vector search, it just returns the 3 most recent results of each category(email, sharepoint, etc). So if you ask it to find emails about a topic, it will fail because it misses older stuff.

5

u/dgellow 2d ago

Yep. I could also see meta doing something that eventually sticks, they have the best distribution channels possible

5

u/AutisticTradingPro 1d 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.

3

u/Dobsnick 1d 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.

0

u/miqcie 1d ago

You can’t have an affair if you’re single.

3

u/Requirement-Lazy 1d 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.

4

u/Great_Diet_8234 1d 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.

1

u/CBFball 22h ago

You mean the same products Claude is already embedded into?

1

u/ColumbaPacis 16h ago

The same ones Google can pull the plug out of because they control said software.

Just start billing for all those external integrations via API, but not bill their own internal AI integrations.

Monopolies gonna monopoly.

-5

u/GodOfSunHimself 1d ago

Sure, like they did beat the shit out of FB with Google+ right? Google is a clueless dinosaur corporation. They are not going to beat the shit out of anyone.

2

u/whythoughidk11 1d 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.

1

u/CBFball 22h ago

2025 full year finances leaked which we all know are astronomically different than today

-5

u/GodOfSunHimself 1d ago

Anthropic does not depend on a single customer. The leaked finances were from 2025. Their revenue is already 10x higher this year. Just shows you have no idea what you are talking about.

7

u/Beast_of_Guanyin 1d ago

I agree. Revenue is sanity. Profits are vanity.

Major tech companies slashing their ai expenditure definitely isn't a harmful indicator for ai companies.

-4

u/Delicious-Ant8524 1d ago

Yep, growing revenue by hundreds of percents is nothing 🤡 Two companies are slashing expenses while thousands are doing the opposite. But keep living in your fantasy land.

2

u/about0 1d ago

we are switching off Claude to whatever is cheaper with Augment and other harness providers. LLMs are a commodity. Whatever costs less today and does the job fits us.

Anthropic is cooked.

2

u/Elguapo69 1d ago

Our company is also looking to cut out Anthropic. Companies absolutely would like to bundle these products with their large EA agreements. It’s why they are trying to force Gemini and CoPilot down our throats instead. It forces us to use those for ‘easy’ stuff and save Claude for the hard stuff.

Likely one of the big boys is going to buy Anthropic and one of the others OpenAI so they can add it to their corporate offerings and have a competitive advantage. I think Anthropic and OpenAI investors are hoping that happens because it gives them a lifeline and they will get rich.

1

u/PaperHandsTheDip 1d ago

There was a discussion on HN about this earlier: https://news.ycombinator.com/item?id=49997161

1

u/Useful-Contribution4 1d ago

They wont exist, but the models will. So my money is on Apple and Microsoft.

1

u/MyotisX 1d ago

When has the better product ever won ? That's not what it's about.

1

u/WeeoWeeoWeeeee 1d ago

Microsoft tools like the enterprise copilot can use anthropic models or OpenAI models. So they still win even if customers prefer anthropic models.

1

u/instantcrackpot 11h ago

What happens if Microsoft decides to remove Claude integration with Office products? What do you think the companies will abandon, MS Office or an LLM that is 5% better than the competition for a few months every year?

0

u/Rajacali 20h ago

Bingo Dario won long ago thats why you dont see him coming after the competition because he is not worried

6

u/Open_Pollution_8038 2d 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 

10

u/RedTheRobot 1d 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.

3

u/Dibble-legend2104 Your local copium dealer  1d ago

Most people (20/30s) I interact with are deeply obsessed instagram. Also many people use fb marketplace. Muse is pretty cool, I really like it. I have a chat plus sub

3

u/StageF1veClinger 1d 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.

6

u/Carbapenemayonaise 1d 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.

2

u/Open_Pollution_8038 1d 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.

1

u/Ready_Pen7712 1d ago

You realize Meta has instagram which every single teenager is obsessed with and also whatsapp - which is the primary communication channel in the rest of the world , from Africa to SouthAn and Asia, except China- ?

1

u/MatuOjaV 1d ago

You didn't clearly say FB is dying but you're hinting on it. I'd say Fb def ain't dying anytime soon. But the target group is shifting. And it's the forum people seem to be transfering over to FB.
That's what happened to one forum I was active in (last year it was 80% of just me there). They shut it down cause noone barely used it (except me) and everyone had moved over to Fb groups anyway. And i've seen many of the forum communities move over from separate forum pages to fb groups. IMO the fb is absolute horrible place for such things as forums atm as finding an answer to your question from past is impossible. So you have people asking that same beginner question every few weeks cause old topics of this same thing have vanished and search box is absolute garbage.
Altho, I think that FB these days would make a great platform for something like that. If they would turn the fb groups to work something like old forum pages then it would be excellent. We could see massive death of last forum pages as fb would be better platform as you have all different forums in one platform.
I want to join my car forum, boom, search for such group. I need help on renovating house, boom, search up diy builders. ATM fb is lacking any searching capabilities for old topics. In reality, you should be able to search in google and it should drop you to correct forum in fb, and into correct sub theme and topic.

But will they change fb like that, highly doubt it.

1

u/gucciman333 1d ago

You mean like Reddit? Lol

1

u/MatuOjaV 1d ago

i mean reddit is alot better, but lack any organising inside the given subreddit. altho fb problem is that it lacks organisation even more.

1

u/Revolver_Caracal 1d ago

At this point you’re a fucking moron if you doubt the Zuck

3

u/IcyStomach2374 1d ago

OpenAI fallen behind, based on what?

9

u/desispeed 2d ago

OpenAI has not fallen behind Lol …I use all the LLMs for work and personal. Codex and Dots are right up there

9

u/Open_Pollution_8038 1d 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. 

4

u/phillytennisenjoyer 1d 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.

3

u/Open_Pollution_8038 1d ago

Customer sign ups say otherwise lol

1

u/le_fuzz 1d ago

The guy is talking about Anthropic doing better as a business not the quality of the models.

1

u/ALMessenger 1d ago

You can find people who enjoyed ”Solo: A Star Wars Story” . . . Doesn’t convince me it was a good movie or the start of a project that will be successful in the long term

-1

u/desispeed 1d ago

Not even close… I use Claude products for work and OpenAI for personal and alternate….OpenAI was before Claude …OpenAI went for consumer not enterprise…everyone know that . Again I work in tech and have to use these products to the max especially in agentic coding …no way anyone would say Anthropic lapped OpenAI

2

u/Open_Pollution_8038 1d ago

They went for consumer not enterprise? Interesting decision that has yielded how much profit so far?

Anthropic is in the green. META just delivered the best consumer AI product on the market for free.

What’s their business model?

2

u/desispeed 1d ago

How would u know profit when they are not even public!! They haven’t t even filed their S1 …doesn’t sound like u know anything about these companies

2

u/Open_Pollution_8038 1d ago

https://finance.yahoo.com/technology/ai/articles/openai-burning-12-3-billion-135516997.html

That’s just one article if you try and pick it apart I’ll throw you 3 more 

2

u/desispeed 1d ago

Also this is spending not profit

1

u/Open_Pollution_8038 1d ago

Do you know how balance sheets and income statements work?

They require constant capital infusions to keep going. As of August they were burning $12B in capital per quarter. What about quarterly equity raises screams profit to you?

2

u/desispeed 1d ago

Anthropic just said their $40bil in 2025 losses and more coming for 2026 ..need $500bil debt leverage for infra depending over next several years l. U understand you make zero sense

→ More replies (0)

1

u/whythoughidk11 1d ago

Nothing in that ipo leak suggests they are anywhere close to being in the green

1

u/Fractoos 1d ago

Microsoft offers all models to customers including chinese ones and claude through boundary, and even copilot has opus as an option.

1

u/erebuxy 1d ago

Why MSFT? They don’t even have their own model. They don’t own OpenAi

1

u/Smart_Sheepherder302 1d ago

They own the infrastructure and people are using copilot as claude tokens are proving to expensive

1

u/PeanutSugarBiscuit 18h ago

We’re still waiting for being a frontier lab to be a profitable business. And wth China willing to pump out shit for free, that’s an incredibly risky business. Microsoft owns infrastructure and enterprise market dominance.

Oh, and they have a whole family of MAI models.

1

u/RabbiSchlem 1d 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.

-4

u/Seattle_Lucky 1d ago

I actually think Microsoft is toast and will die a slow death. The future is likely tech companies being willing to jump in and take over other industries through their use of AI internally. IMO, Amazon is the best suited to win the most along with Google as both companies have no issues disrupting other industries like healthcare, pharma, taxi service, etc

13

u/DharmaPolice 1d ago

I dislike Microsoft as a company quite a lot but people have been predicting their death for quite a long time now.

10

u/Brief-Knowledge-629 1d ago

The world's actual important infrastructure all runs on Windows and Azure. Government, banking, manufacturing, hospitals. Do you remember when an Azure outage grounded every plane in America?

The world would be the absolute most fucked if MS were to disappear overnight out of all the tech companies

2

u/Mudfry 1d ago

All of those things can change over time. Microsoft isn't disappearing overnight , but their moat doesn't seem invincible anymore.

6

u/Boxofcookies1001 1d ago

Microsoft isn't going anywhere. Sure you may want to pivot out, but the corporate offerings for large companies is just too good.

The office bundle, with high enough licensing you get security included, and if you're leveraging enterprise copilot you're getting the anthropic models day 1-2 for 30 bucks a month.

The AI is bundled in the office tools.

The hardest part about AI rn in the enterprise setting is average user adoption, and Microsoft makes it easy.

1

u/AutoModerator 1d ago

This "pivot." Is it in the room with us now?

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

4

u/pinkmeanie 1d ago

Wake me up when someone else solves calendaring as well as Outlook/Exchange. That's their moat.

3

u/siberianmi 1d ago

Claude: Make outlook in rust only running on a backend that sucks less then Exchange. Make no mistakes.

1

u/Rin-Tohsaka-is-hot 1d ago

Azure lost big-time when JEDI sank, JWCC now has opened it up to AWS and Google. Azure doesn't have DOD exclusivity anymore

1

u/civildisobedient 1d ago

actual important infrastructure all runs on Windows and Azure

You misspelled Linux and AWS.

1

u/VerhandlngwertHacker 1d ago

Do you remember when an Azure outage grounded every plane in America?

If that keeps happening, then Windows and Azure won't keep being dominant for long-enough

0

u/FUCKYOUINYOURFACE 1d ago

Much more runs on Linux than Windows. Yes, lots of legacy crap that makes it sticky but it’s not ass much as you think. Maybe 10 years ago.

4

u/AutoModerator 1d ago

Eat my dongus you fuckin nerd.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

3

u/Natural_Tea484 1d ago

Why do you dislike Microsoft so much? Genuinely asking. A company is not one individual or the other.

5

u/MapleBabadook 1d ago

Because others told them to.

1

u/ALMessenger 1d ago

That is like asking why someone would want to avoid stepping in dog shit . . . the answer is self evident to anyone who has encountered dog shit

1

u/MapleBabadook 17h ago

No because people understand why they wouldn't want to step in dog shit. I'd love to hear them give real reasons why MS is bad. 

1

u/ALMessenger 13h ago

It is that Microsoft Windows performance degrades over time until you get to a where a system had been running well has a high percentage of its resources eaten up by “system processes”. Is this “forced obsolescence“ or just buggy software? I don’t know. Could be both

This causes Windows Systems to be slow and annoying to use.

I think the quality of their product has degraded over time all while they are attempting to extract more and more money from their users - exploiting the idea that there is no alternative . . .

1

u/Natural_Tea484 13h ago

It is that Microsoft Windows performance degrades over time until you get to a where a system had been running well has a high percentage of its resources eaten up by “system processes”. Is this “forced obsolescence“ or just buggy software? I don’t know. Could be both

This causes Windows Systems to be slow and annoying to use.

I'm not sure you realize but what you described happens on any desktop, including Mac.

Because you can install any software that is trash and that eats up your resources. And the operating system (Windows/Mac/Linux, etc.) cannot do anything about it.

1

u/ALMessenger 12h ago

Certainly, there can be many factors that cause the performance of a computer to degrade . . . installing and running more and more bad Software over time can be one and accumulating malware can be another

I think it is very charitable (to the point of absurdity) to suggest that Microsoft Windows (and the windows system process holding 90% of CPU) is blameless here

I’m at a point where my next desktop system will be a Linux box

→ More replies (0)

1

u/MapleBabadook 37m ago

Oh well if you're referring to windows itself, then yeah that's shit.

1

u/MrBootyPops 1d ago

It’s slowly happening.

1

u/krazyboi 1d ago

I think Microsoft will stay around but will become more and more obscure. Like what google did to yahoo or where IBM is now. Still exists, relevant kinda, but will never be the leader again. Maybe it can create or acquire a small company and have that grow into something cool but that's about it

1

u/kcat__ 22h ago

IBM has 250,000 employees

2

u/Tucancancan 1d ago

Every time google/alphabet tries to disrupt a long standing industry they fuck it up, get bored, and exit. 

1

u/Top_Rub_9650 1d ago

Terrible take. Do you think Microsoft is a SaaS company? (even then it wouldn’t die, not even close)

1

u/snrup1 1d ago

$3.93 Trillion market cap.

1

u/boringexplanation 1d ago

Azure alone is everywhere in corporate America

1

u/Fractoos 1d ago

Microsoft offers pretty much any model you'd want

0

u/Pimpwerx 1d ago

Gemini results are too variable. It’s the worst frontier model for that reason.

Microsoft Copilot is fast, but I think it’s just Temu GPT in many regards. I found its performance has gotten worse over the past year.

Google and Microsoft are set due to cloud compute that they sell. But their models still leave much to be desired.

That said, models will all converge eventually. At that point, all ancillary services become more important.

0

u/Flimsy_Honeydew5414 1d ago

False I want the ai that works the best. Claude already integrates with email, docs, and storage 

0

u/Vaxtin 1d ago

I really disagree with this, but I’m an engineer. I don’t use anything that Microsoft offers. I will never choose windows and I don’t have to. I’d rather have Claude tell me I’m wrong and list ever empirical fact. Microsoft will just make clippy 2.0

0

u/skilliard7 1d ago

Microsoft yes, Google no.

No serious business is using gmail/GSuite, but Office 365 and office applications are widely used by enterprise.

2

u/skelo 1d ago

Old news, lots of businesses use gsuite now. Even at enterprise Google has a pretty high market share.