Microsoft and Google chase Anthropic and OpenAI in AI coding
Anthropic and OpenAI got out front on AI coding tools, and now Microsoft and Google are spending to catch up. Microsoft will announce a cheaper coding model for Copilot at its Build conference this week. Google is leaning on price too, with a $100-a-month developer tier and its Antigravity agent product. The market is real money: analysts at Mordor Intelligence expect AI coding tools to grow about 26% a year, from $9.3B now to roughly $30B by 2031. The useful part for buyers is that there's almost no lock-in yet — companies like MongoDB run several tools side by side and buy one year at a time.
Why it matters
More vendors fighting over coding tools means lower prices and better free tiers for small teams. Don't sign a long contract — pick the tool that does the job today and stay free to switch, the way the big buyers are.
Network impact
What to do
- Watch Microsoft's Build announcements this week for the cheaper Copilot coding model and its price.
- If you code, trial Google's $100/month developer tier against your current tool on a real task, not a toy demo.
- Buy AI coding tools one year at a time — avoid multi-year lock-in while the market is this volatile.
- Track usage-based billing closely; metered pricing can spike when an agent burns tokens building something.
- Keep one fallback tool configured so you can switch providers without rebuilding your workflow.