Microsoft Cancels Anthropic AI Licenses as Spending Hits 4.91% of U.S. GDP
MSFT•Microsoft cancelled Anthropic’s Claude Code licenses and reverted to GitHub Copilot as AI spending reached a record 4.91% of U.S. GDP. Shares trade at 25.6x P/E—30% below average after a 12% drop to $425, with Q1 revenue up 18.3% to $83B and operating margins at 47%.
1. AI Spending Surge and Cost Pressures
Corporate investment in information processing equipment and software reached 4.91% of U.S. GDP in Q1 2026, surpassing the dotcom peak of 4.46% in 2000. Cloud service providers have raised prices by roughly 30% year-over-year, while enterprises grapple with “tokenmaxxing,” driving unproductive AI usage and ballooning bills.
2. Microsoft’s License Decision
Faced with escalating AI costs, Microsoft has terminated internal licenses for Anthropic’s Claude Code and reverted development teams to its own GitHub Copilot. The move aims to rein in software spending and leverage existing Copilot integrations across its engineering organization.
3. Valuation and Stock Performance
Microsoft’s shares have slid about 12% to near $425, but trade at a 25.6x P/E, roughly 30% below its historical average. Last quarter, the company posted $83 billion in revenue, up 18.3% year-over-year, and maintained operating margins around 47%, underscoring resilient profitability.
