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Microsoft starts canceling Claude Code licenses

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Re: Microsoft starts canceling Claude Code licenses

#111

I think tech companies are doing layoffs partly because they need to cover AI operating expenses.

I think so too, otherwise why wouldn't you put that (purported) increased capacity/output into improving your existing products or creating new ones, with the headcount that you already have?

Re: Microsoft starts canceling Claude Code licenses

#112

I'm surprised they even had them in a first place. Doesn't Microsoft have a deep partnership with OpenAI? Aren't all Copilot things powered by various GPT models? I would assume the two companies have barter agreements of sorts.

They do have agreements, but they aren't exclusive, and Microsoft and Open AI have had a rather public falling out over the last year.

Re: Microsoft starts canceling Claude Code licenses

#114

Earlier quoted context omitted.

> There's definitely a way to use Claude code that is token conscious. Colleague used Sonnet 4.6 on some pretty normal agentic coding tasks through AWS Bedrock to keep the data in the EU, 100 EUR usage in a single day. In comparison, the Mistral subscription costs about 20 EUR per month and we tested that for similar tasks it was okay , the usage got to around 10% of that monthly limit in a single day. Or Anthropic's…

I was trying to get a better sense of the time cost quality matrix of these, so I threw together a quick eval of Sonnet 4.6, Mistral's dev model, and Opus 4.7 (figuring it's what you'd use if you were on Max). The results for a function implementation and test of levenshtein distance in js are pretty similar but Mistral is 30x cheaper than Opus 4.7 and 4x faster than Sonnet 4.6. https://5m6qnuhyde.evvl.io/

The one detail I did forget to mention is that if anyone goes with the Mistral subscription (instead of paying per-token), then the Mistral Vibe tool gives you their Medium 3.5 model by default, with a 200k token context. It will probably be enough for plenty of tasks, though there's also a noticeable difference between that and up to 1M.

Re: Microsoft starts canceling Claude Code licenses

#115

Feels about right. I've launched an internal demo of Claude Code and Deepseek on the same day and we burned through our monthly allowance for Claude in just over a week, with more than a half of that budget being spent in one day. With DS people are unable to go through that same amount of money in a month, not even close. With that Claude feels like an expensive toy, while DS is a shovel, purely because developers d…

I rage canceled Claude today. After 2 weeks of Claude getting progressively worse and worse, today was the final straw. I don't care if they have a phone app. The model is COMPLETE garbage after you subscribe long enough and they think they've "got you". I can't code on my phone if the model literally moves in the wrong direction and does the opposite of what I tell it to. If I wanted to make my code worse, I'd just…

All these tools have almost feature parity. The GitHub cli allows remote sessions and can run anthropic models anyway

Re: Microsoft starts canceling Claude Code licenses

#116

Feels about right. I've launched an internal demo of Claude Code and Deepseek on the same day and we burned through our monthly allowance for Claude in just over a week, with more than a half of that budget being spent in one day. With DS people are unable to go through that same amount of money in a month, not even close. With that Claude feels like an expensive toy, while DS is a shovel, purely because developers d…

I rage canceled Claude today. After 2 weeks of Claude getting progressively worse and worse, today was the final straw. I don't care if they have a phone app. The model is COMPLETE garbage after you subscribe long enough and they think they've "got you". I can't code on my phone if the model literally moves in the wrong direction and does the opposite of what I tell it to. If I wanted to make my code worse, I'd just…

I've seen a lot of this sentiment over the previous six months from people on reddit. I have yet to experience this myself as a developer with over 20 years of experience.

Re: Microsoft starts canceling Claude Code licenses

#117
post #5

There's definitely a way to use Claude code that is token conscious. I've tried throwing unsupervised agentic software factory workflows against the wall, and they burned through my tokens like nobody's business but didn't produce much. Supervised, human-in-the-loop process on the other hand is much more productive but doesn't consume nearly as much. Maybe that's why everyone's pushing agentic approaches so much.

The current thinking is automated agents is what turns this from an industry in the tens of billions to a multi trillion dollar one. So yes you are right on the money, agents stimulate demand for this thing they've built.

"The bureaucracy is expanding to meet the needs of the expanding bureaucracy"

Re: Microsoft starts canceling Claude Code licenses

#118
post #48

Earlier quoted context omitted.

Claude code gets >98% KV cache hits. It’s not reprocessing unless you let the cache go cold (5 minutes, which is annoyingly short).

I meant caching on a bigger level. If you're an organization with 100 developers each doing 10 sessions a day, you're paying for 10000x tokens in frequently used document even if you had 100% KV cache hits within one session. Apparently that's too costly even for companies with trillion dollar market cap... Normally KV cache works only if your context prefix is identical, but there are papers which demonstrate docume…

Ah, understood, and thanks for the clarification!

Re: Microsoft starts canceling Claude Code licenses

#119
post #106

Earlier quoted context omitted.

An enormous percentage of America’s white collar work force has been doing this since 2023. Fun fact, up until you face a consequence for crime, all crime is free! Have fun and go win the competition game against your co-workers.

Fair, but I assume everything on my work laptop is key logged. Surely they would notice Claude phoning home from my company laptop? I suspect a network rule to look for that traffic is trivial?

My employer doesn't specifically block this stuff, but does put up a warning when you visit it to review our AI usage policy. There isn't detection for using things in ways we shouldn't, but they have an audit trail and can review it if there is suspicion.

Re: Microsoft starts canceling Claude Code licenses

#120
post #90

Earlier quoted context omitted.

That was roughly 3 weeks ago, with the reprising of Claude 4.7 and GPT 5.5, things have become more spicy.

use AI, don't use AI, this whole thing is getting really hard to follow

i've worked at so many places where the propaganda/marketing and reality on the ground is so disorienting/shocking i don't really expect this to be any different...
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