Microsoft is introducing an automatic AI model selection feature in its Visual Studio Code editor, which will choose the most suitable model for optimal performance. This feature will select from options such as Claude Sonnet 4, GPT-5, GPT-5 mini, and others for free users of GitHub Copilot, while paid users will primarily use Claude Sonnet 4.
This move suggests that Microsoft may be prioritizing Anthropic’s AI models over OpenAI’s latest GPT-5 models in the realm of coding and development. Sources familiar with the company’s development strategies indicate that Microsoft has been encouraging its developers to utilize Claude Sonnet 4 in recent months.
Julia Liuson, the head of Microsoft’s developer division, stated in an internal email from June that Claude Sonnet 4 was the recommended model for GitHub Copilot based on internal benchmarks. Although this guidance was provided prior to the release of GPT-5, reports imply that it has remained unchanged.
Additionally, Microsoft is reportedly making significant investments in training its own AI models. Mustafa Suleyman, Microsoft AI chief, noted during an employee-only town hall that the company plans to enhance its AI capabilities with a larger training cluster than the current 15,000 H100s used for the MAI-1-preview.
Furthermore, Microsoft is expected to incorporate Anthropic’s AI models into features for its Microsoft 365 applications. Reports indicate that some models from Anthropic have shown superior performance in applications such as Excel and PowerPoint compared to OpenAI’s offerings.
Last week, OpenAI and Microsoft announced a new deal, which may be linked to OpenAI’s plans for an initial public offering. Since 2019, Microsoft has invested over $13 billion in OpenAI and has established a complex revenue-sharing agreement, allowing OpenAI to utilize rival cloud services. More details regarding the evolving relationship between Microsoft and OpenAI are anticipated soon.
Source: https://www.theverge.com/report/778641/microsoft-visual-studio-code-anthropic-claude-4