Microsoft raises Copilot prices as AI's subsidy era ends
microsoft hiked github copilot prices, signaling an end to heavily subsidized ai. this shift threatens to strain enterprise budgets and force ai labs toward profitability before they are ready.
microsoft implemented significant price increases for github copilot by shifting to metered billing for tokens, sparking what users call the 'tokenpocalypse'. this pricing overhaul exposes the massive underlying costs of generative ai and ends the period of heavy investor subsidies. companies like uber are already slashing ai budgets and capping employee usage after burning through cash too quickly. as ai labs like anthropic prepare for ipos, they must navigate the widening gap between flat subscription fees and the steep price of running inference. this evolution forces the industry to confront whether businesses will actually pay the true cost of ai or if growth will stall due to pricing friction.