Microsoft is updating its Visual Studio Code editor, introducing an AI model selector prioritizing Anthropic’s Claude Sonnet 4 over OpenAI’s GPT-5 for GitHub Copilot users. This strategic shift indicates Microsoft’s favoring of Claude for coding tasks, despite its significant $13 billion investment in OpenAI. Internal communications, particularly from Julia Liuson of Microsoft’s developer division, suggest a longstanding preference for Claude Sonnet 4. Additionally, Microsoft is intensifying efforts to train its proprietary AI models, with significant investments indicated by AI chief Mustafa Suleyman. The preference for Claude extends to other Microsoft products, including Microsoft 365 Copilot, which will leverage Anthropic models. This move follows a recent deal with OpenAI, hinting at a potential IPO for the latter and positioning Microsoft to profit substantially from its hefty investments, estimated at $150 billion. This news underscores a notable shift in Microsoft’s AI strategy amid ongoing developments in the tech industry.
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