Microsoft is making some big changes in its Visual Studio Code editor. They’re introducing a feature called automatic AI model selection. This will automatically choose the best model to improve performance for users. For free GitHub Copilot users, it can select between various models, including Claude Sonnet 4 and GPT-5. However, paid users will mostly use Claude Sonnet 4.
This shift indicates that Microsoft is favoring Anthropic’s AI models over OpenAI’s latest offerings. Recent insights reveal that Microsoft has been guiding its developers to use Claude Sonnet 4 more frequently. Julia Liuson, head of Microsoft’s developer division, mentioned in an internal email that this model is recommended based on performance benchmarks, even before GPT-5 was launched.
In addition to this, Microsoft is investing heavily in training its own AI models. Mustafa Suleyman, the head of Microsoft’s AI division, stated recently that they’re planning significant investments to expand their AI training clusters. Currently, their MAI-1-preview model has only been trained on 15,000 H100s, a rather small setup compared to what’s possible.
There’s also news about Microsoft planning to use some of Anthropic’s AI models for features in Microsoft 365 apps. Reports suggest that the Microsoft 365 Copilot will integrate these models, as they performed better than OpenAI’s models in Excel and PowerPoint.
In a related development, Microsoft and OpenAI recently announced a partnership that may pave the way for OpenAI’s IPO. Microsoft has invested over $13 billion in OpenAI since 2019, creating a complex revenue sharing agreement. They’re also allowing OpenAI to work with other cloud providers, hinting that more updates about their collaboration might be coming soon.
This pivot towards Anthropic could change the landscape of AI tools in coding and productivity applications. As more companies experiment with different AI models, it’s clear that user experience and performance are driving these decisions. The tech world is watching closely to see how these changes will unfold.
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