Microsoft bets on Anthropic as it loosens ties with OpenAI

Microsoft has unveiled Copilot Cowork, an AI agent tool built on Anthropic's Claude technology, marking a significant shift in its AI partnerships. Unlike Claude's local-only approach, Microsoft's version operates exclusively in the cloud with enterprise-grade security and data controls. The tool will be available to early-access users later in March, with some usage included in the $30/month M365 Copilot subscription. Microsoft is also making Anthropic's Claude Sonnet models available to M365 Copilot users, reducing its heavy reliance on OpenAI, which currently accounts for nearly 45% of Microsoft's cloud business contract backlog.