Microsoft Shifts Copilot to Usage-Based Pricing While Exploring DeepSeek as Low-Cost AI Alternative
Summary
Microsoft is overhauling Copilot's pricing to a usage-based model amid soaring costs from power users, while simultaneously exploring a fine-tuned, Azure-hosted version of DeepSeek V4 as a cheaper AI alternative to OpenAI and Anthropic, with a decision expected within weeks.
Key Points
- Microsoft is shifting Copilot Cowork to usage-based pricing as high-volume users drive costs sky-high, with some completing hundreds of tasks per week.
- Microsoft is exploring a fine-tuned, Azure-hosted version of DeepSeek V4 as a lower-cost model alternative to OpenAI and Anthropic, with a decision expected in the coming weeks.
- If DeepSeek is adopted, it will be optional for enterprise customers and fully hosted on Azure, with added safeguards including bias-reduction measures and full compliance with Microsoft's security and data-residency controls.