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Microsoft sets GPT-4.5 as default internal AI, dealing another blow to Anthropic

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Microsoft EVP Jay Parikh issued an internal memo stating the company is not optimizing for high token usage, signaling a shift in its AI strategy. The memo designates OpenAI's GPT-4.5 as the default model for internal use, replacing an auto-router that had previously directed GitHub Copilot workloads to Anthropic's Claude. This move further marginalizes Anthropic within Microsoft's ecosystem, coming months after the company cancelled its Claude Code licences. Additionally, every Microsoft division has now been assigned an AI token budget target, reflecting tighter controls on AI resource consumption.

Read the full story at Times of India

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