Anthropic continues to make inroads with its artificial intelligence (“AI”) models, rolling out tools to a variety of software companies, including now one of the world’s largest, Microsoft (MSFT).
Anthropic’s Claude Cowork AI model joins Microsoft’s existing in-app Copilot tool to form Copilot Cowork, which will soon be available in the Microsoft 365 suite of products. Microsoft touts a number of new capabilities of Copilot Cowork that can be deployed in its 365 package:
- Cleaning up your calendar, helping you prioritize meetings and proposing schedule changes
- Preparing meeting presentations, including relevant information from emails, meetings, and other files
- Researching companies, including reports using data from open-source filings along with an executive summary and other supporting documents
The rollout of Copilot Cowork is currently just a research preview. A wider release will become available in late March.
Sure, Copilot Cowork may do all these tasks – and even do them well – but they’re just realizations of what AI proponents have already been touting for months and months.
So, as evolutionary technology, Microsoft’s product looks fine. It’s just not revolutionary…
The more interesting story here is the inclusion of Anthropic’s model into the products of more and more software companies, including the name behind the world’s largest PC platform.
Amid investor scrutiny, Microsoft and many AI-adjacent companies are under pressure to show soaring AI sales that justify the hundreds of billions of dollars being invested in AI capabilities this year alone.
Anthropic itself is rushing to generate revenue that allows it to sustain its massive investments in AI infrastructure. CEO Dario Amodei has even stated that revenue growth – as breakneck as it is – may not soar fast enough to avoid a serious financial crunch, perhaps even bankruptcy.
So, this tie-up helps Anthropic accelerate much-needed revenue growth, even as Microsoft taps what is likely the largest rival to OpenAI, in which it owns a huge stake.
Microsoft, a Major OpenAI investor, Chooses Anthropic
Microsoft’s choice of Anthropic might seem counterintuitive at first. After all, Microsoft owns 27% of rival OpenAI, and so it might seem best if it supported its own investment there.
But Microsoft has opted to go with the AI model that is particularly popular with enterprise users.
This may ultimately prove a wise decision for Microsoft, given the precarious financial position of AI companies such as OpenAI and Anthropic. AI firms have been spending furiously as they build out the necessary infrastructure, such as data centers, in the hope of “if you build it, they will come.”
However, both AI firms are expected to burn billions more before they ever become profitable. OpenAI may not even begin to turn a profit until the 2030s, according to some estimates. For Anthropic, the break-even date is expected to be sooner.
However, Anthropic has had a recent run-in with the U.S. Department of Defense, saying that its technology shouldn’t be used for autonomous weapons or domestic mass surveillance. In response, the Trump administration labeled Anthropic a supply-chain risk and ordered government agencies to stop using Anthropic’s Claude bot.
Anthropic’s position endeared it to members of the public, while OpenAI’s response to a similar request from the government resulted in users deleting their accounts with that company.
With both companies raising tens of billions in recent funding rounds to support operations, they’ll need to become wildly profitable to justify their investments. Recently, some investors have become more skeptical of the AI trade given its massive costs and uncertain economics.
In fact, the “OpenAI trade” – that is, stock market bets against companies allied with OpenAI – may have been hurting Microsoft and others such as Oracle (ORCL) since the end of 2025. Still, Anthropic may be well positioned, particularly as it’s become “the AI name to fear” in recent months.
Anthropic Threatens Software Stocks
Microsoft’s partnership with Anthropic is interesting considering the fear that Anthropic’s agents have created in software investors. Enterprise software stocks have plummeted to start the year.
Investors are worried that a range of AI agents from Anthropic and others may deliver software at a steeply reduced price. They could cut the meaty margins of established software players.
Well-known software stocks have lost nearly 20% to 50% to kick off 2026. (Data from Morningstar as of March 9)
- Salesforce (CRM): -25%
- Adobe (ADBE): -19%
- Atlassian (TEAM): -49%
- ServiceNow (NOW): -20%
- Asana (ASAN): -42%
Those and many other Software as a Service (“SaaS”) stocks have been clobbered as Anthropic continues to announce a range of new features for its AI models. (The downturn may make a great opportunity to get in while fear is running high.)
But the Microsoft deal looks a lot like many other tie-ups that Anthropic is striking with enterprise software firms. Anthropic is deploying its agents as plug-ins for other well-established products.
For example, it’s putting its tools on platforms such as Slack, Docusign (DOCU), and LegalZoom (LZ), among many others.
The value proposition is that these platforms can deliver productivity-enhancing features to employees and clients. So, Anthropic’s tools – for now – complement those of enterprise software firms.
But money continues to pour into the sector, with tens of billions from Microsoft, Meta Platforms (META), Alphabet (GOOGL), and Amazon (AMZN). Anthropic itself raised $30 billion to start the year, and the company has been exploring an IPO for 2026.
All that money means more tools… and maybe more disruption. We’ll keep watching…
Regards,
James Royal
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