Microsoft transitioned its Copilot Cowork service to a usage-based pricing model on June 17, 2026.
The company cited escalating computational costs and high enterprise AI workload demands for the shift. This new structure replaces fixed-seat licenses to align customer costs with actual consumption patterns.
Microsoft aims to improve customer retention and ensure profitability as AI applications become more resource-intensive. The company is also reportedly exploring an economical Azure-hosted version of DeepSeek to further manage expenses.