Microsoft Cancels Internal Anthropic Licenses As Shift To Token-Based AI Billing Blows Up Annual Budgets In Months
The Low-Down

The good news for AI generators and investors is that the technology is beginning to prove out financially as revenues surge. The bad news? The industry's move from flat-rate fees to token-based billing that charges for every line of code generated has become so expensive that it is blowing up annual budgets in a matter of months. Uber has warned employees that it has burned through its entire 2026 budget in four months. Microsoft, which has infinite cloud-computing assets, has cancelled a program providing internal staff access to Anthropic's Claude because of the unexpectedly exorbitant cost.