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Microsoft taps Anthropic for Copilot Cowork in push for AI agents

A view shows the Microsoft logo on the day of the Hannover Messe, one of the world's largest industrial trade fairs with this year's partner country being Canada, as both Canada and the European Union face new U.S. tariffs, in Hanover, Germany, March 31, 2025. (Fabian Bimmer/Reuters)
By Aditya Soni Reuters

Microsoft 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 on Monday 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% 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% of Microsoft’s cloud business contract backlog.