Anthropic Is Too Expensive, Microsoft’s AI Chief Warns — US Firms Turn to China’s DeepSeek

Anthropic Is Too Expensive, Microsoft’s AI Chief Warns — US Firms Turn to China’s DeepSeek

https://www.ibtimes.co.uk/us-companies-seek-cost-effective-ai-alternatives-1800929

Publish Date: 2026-06-05 07:44:00

Source Domain: www.ibtimes.co.uk

Companies are increasingly aware that transitioning to artificial intelligence (AI) is the way forward. However, some organisations have realised that new technology comes at a cost.

Anthropic is arguably one of the first companies that comes to mind when AI is mentioned. Its API and Pro subscriptions are competitively priced, although overall costs may rise depending on the number of users accessing the coding tool.

A look at the company’s official website shows different Claude packages. The monthly subscription fee for the Pro package is $20, while the cost of using the Max bundle is $100 per month. When this figure is multiplied by the number of employees who would use it, the total cost becomes substantial.

As a result, it is hardly surprising that some companies are seeking alternatives. Microsoft AI CEO Mustafa Suleyman said that the cost of a Claude subscription is too high, according to a report by Bloomberg. If that’s the perspective of a software giant, with a market capitalisation valued at approximately $3 trillion, it is reason enough for some companies to look at more cost-effective alternatives.

Ironically, these remarks came not long after Microsoft unveiled seven new MAI models at its Build conference. Suleyman claimed that Microsoft’s new coding model offers the same capabilities as Anthropic’s Opus 4.6 but at a lower price.

‘We pay a lot of money to Anthropic—so our goal is to reduce and ultimately eliminate that cost,’ the Microsoft executive said.