Microsoft adds Anthropic technology to Copilot in shift to AI agents

Microsoft (MSFT.O) is adding Anthropic’s AI technology to its Copilot service to tap ​growing demand for autonomous agents, weeks after the startup’s new tools ‌sparked a selloff in software stocks.

The company this week unveiled Copilot Cowork, a tool based on Anthropic’s viral Claude Cowork offering, which has captivated Silicon Valley with its ability to ​handle complex tasks such as creating apps, building spreadsheets and organizing large ​volumes of data with limited human oversight.

Microsoft is betting that ⁠its long-standing ties with enterprise customers and its focus on security and data ​controls will help it win business from companies interested in AI agents but ​wary of deploying them without safeguards.

“We work only in a cloud environment and we work only on behalf of the user. So you know exactly what information it (Copilot Cowork) has access ​to,” Jared Spataro, who leads Microsoft’s AI-at-Work efforts, told Reuters.

Claude Cowork only ​works locally on the device and most companies feel “very uncomfortable” with that, he said. “We’re the opposite.”

The ‌launch ⁠comes weeks after Anthropic introduced new tools for Claude that intensified investor concerns about the threat AI agents could pose to traditional software companies, triggering to a selloff in the sector. Microsoft’s own shares fell nearly 9 per cent in February.

Copilot ​Cowork tool is currently ​in testing and ⁠will be available to early-access users later this month, Microsoft said.

The company did not disclose pricing, but said some ​usage would be included in its $30-per-user, per-month M365 Copilot offering ​for enterprises, ⁠with additional usage available for purchase.

Microsoft also said it is making Anthropic’s latest Claude Sonnet models available to M365 Copilot users. The service had previously relied only on ⁠OpenAI’s GPT ​models.

The move deepens Microsoft’s ties with Anthropic at ​a time when investors have questioned its dependence on OpenAI, which accounts for nearly 45 per cent of ​Microsoft’s cloud business contract backlog.