Microsoft Favors Claude Over GPT

Welcome to another edition of AI PlanetX.

Microsoft shifts to Anthropic in VS Code; China intensifies rivalry by banning Nvidia AI chips; Fiverr cuts 250 workers as AI-first strategy takes hold.

• Hottest AI News

• Top AI & SaaS Tools

• Top AI & Tech News

• AI Art Spotlight

• Prompt of the Day: Uncover Million Dollar Business Ideas

• AI Video Tutorial

• Course of the Day: Learn AI Agents

Hottest AI News

Microsoft

Microsoft Quietly Favors Anthropic Over OpenAI in Visual Studio Code

Microsoft is quietly shifting its AI strategy, leaning on Anthropic’s Claude models over OpenAI’s latest releases in developer and productivity tools—even after pouring $13B+ into OpenAI since 2019.

Details:

• Visual Studio Code’s automatic AI model selection feature will mainly recommend Claude Sonnet 4 for GitHub Copilot users. This applies even over the GPT-5 models. Internal memos show Microsoft’s developer division head called Claude Sonnet 4 the “recommended model,” based on internal benchmarks

• Microsoft’s preference for Anthropic goes beyond coding tools. Reports say Microsoft 365 Copilot will be “partly powered by Anthropic models.” Internal testing showed Claude outperformed OpenAI’s models in apps like Excel and PowerPoint

• At the same time, chief Mustafa Suleyman confirmed the company is investing heavily in training its own models. The current MAI-1-preview only used 15,000 H100 chips. But larger training runs are planned, signaling Microsoft’s intent to reduce dependence on outside AI

This pivot highlights the fierce AI race. Even as OpenAI’s main backer, Microsoft is diversifying its approach, balancing rival partnerships with its own expanding AI strategies.

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Nvidia

China Bans Nvidia AI Chips as Tech War Escalates

China has intensified its tech war with the US by barring major domestic firms from purchasing Nvidia’s AI chips made for the Chinese market, signaling a decisive shift in the ongoing semiconductor battle.

Details:

• China’s Cyberspace Administration has barred Alibaba, ByteDance, and others from using Nvidia’s RTX Pro 6000D chips. Thousands had been ordered since July, but the ban rejects even technology tailored for China’s rules

• Nvidia CEO Jensen Huang said he was disappointed, noting the company’s contributions to China. U.S. Speaker Mike Johnson blamed Beijing for tensions, accusing it of ignoring trade laws while trying to rival America

• The ban escalates the chip war. The U.S. blocks AI chip sales, while China restricts key materials. Currently, Beijing is racing to build its own advanced chips instead of relying on Nvidia’s weaker, China-limited versions

The chip divide between the world’s two largest economies is widening, leaving global tech firms to navigate a fragmented landscape where technology and geopolitics are tightly bound.

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Top AI & Tech News

• Fiverr is cutting about 250 employees (around 30% of its workforce) as it pivots to an "AI-first" strategy

• Grok 4’s training was extremely resource- and cost-intensive: about $490 million and energy equal to powering a town of ~4,000–10,000 people

• Amazon has launched a beta AI chatbot for sellers that can create branded ads from simple text prompts

• Microsoft to invest $30B in U.K. AI infrastructure; Google to invest $6B in the U.K. AI economy over two years

AI Art Spotlight

Model: Midjourney V7

Prompt:

a black-and-white photograph of a ufo hovering over fields, with a surprised cat taking a selfie in the background. --ar 58:61 --v 7

Prompt of the Day

Uncover Million Dollar Business Ideas 🤯

This prompt frames an expert interviewer who uses indirect, one-question-at-a-time prompts to help you recall solved but forgotten problems, then reflects on those moments to explore their potential as marketable products or services.

Top AI Video Tutorial

Advanced 2025 Guide to Prompt Engineering

Complimentary AI Course of the Day

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This course teaches you how to build AI agents capable of engaging in dynamic, context-aware conversations using ReAct (Reason + Act) prompts. You’ll learn to construct prompts that guide agents to reason about user input and select appropriate real-time actions.