How Microsoft Escaped the AI Margin Squeeze; An FDE Boom

Microsoft shared some good and bad news with investors during its quarterly earnings call Wednesday: More customers have been using Microsoft’s suite of AI copilots, but many of them aren’t paying for it. 

Microsoft said more people are using Copilot Chat, which provides ChatGPT-like features to Office 365 subscribers for free (more advanced features are priced on a pay-as-you-go basis). Copilot Chat is a more price-flexible version of Microsoft’s flagship AI copilot for Office while the full-fledged copilot starts at $30 per user, per month, roughly doubling the cost of an Office subscription.