Microsoft steers VS Code to Claude 4, signaling an Anthropic tilt

Microsoft added auto model selection to VS Code that, for paid Copilot users, defaults to Anthropic’s Claude Sonnet 4 over OpenAI’s GPT-5. Internal benchmarks and guidance back the choice, and Microsoft plans to use Anthropic in Microsoft 365 where it tests better. Meanwhile, the company is scaling its own model training efforts and still deepening ties with OpenAI.

Key Points

• VS Code gains an auto model selector; paid Copilot users will primarily use Anthropic’s Claude Sonnet 4 over OpenAI’s GPT-5.
• Microsoft’s internal benchmarks recommend Claude Sonnet 4 for Copilot, and that guidance persists after GPT-5’s release.
• Microsoft 365 Copilot is expected to be partly powered by Anthropic models where they outperform OpenAI (notably in Excel and PowerPoint).
• Microsoft is ramping up in-house model training and compute, with plans to scale beyond the 15,000-H100 cluster used for MAI-1-preview.
• Microsoft maintains its partnership with OpenAI, recently striking a new deal that could aid OpenAI’s IPO.

Sentiment

Mixed: many accept Claude as a strong coding choice that justifies Microsoft’s routing, while a sizable minority prefer GPT-5 and criticize Anthropic’s UX and policies.

In Agreement

• Claude is currently stronger for coding and productivity (tool use, code generation), so Microsoft’s model choice is sensible.
• Customer demand likely drives the decision; in GitHub Copilot, Claude often outperforms GPT variants for many users.
• Prioritizing Claude helps protect VS Code’s quality and brand amid competition from coding assistants like Cursor.
• The official VS Code post confirms the auto-model selection approach, lending credibility to the report.

Opposed

• GPT-5 (and Codex) now deliver better coding results for some developers, challenging the idea that Claude is best.
• Anthropic’s account and phone-number policies add unnecessary friction, limiting usability in professional contexts.
• Concerns about Anthropic’s business practices (e.g., expiring credits, attempted charges) erode trust.
• Strategically puzzling for Microsoft if VS Code is meant to drive Azure/first-party services; favoring Anthropic may dilute that alignment.