ToolsThe story, in brief
Microsoft's Copilot Cowork moves to usage-based billing and may tap DeepSeek
Microsoft just ditched flat-rate pricing for Copilot Cowork. Here's why the entire AI SaaS industry is about to follow.
The KeyNews take
Why it matters
Microsoft is signaling a pricing inflection point across AI products by moving Copilot Cowork to usage-based billing and evaluating cheaper model alternatives like DeepSeek V4. This reflects pressure on unit economics in AI applications and hints at a broader industry shift away from fixed pricing.
The key facts
4 to knowMicrosoft switching Copilot Cowork to usage-based billing model
Company evaluating fine-tuned DeepSeek V4 as cost-optimized model option
Charles Lamanna (Copilot head) cited flat-rate pricing as unsustainable
Move reflects broader industry pattern on pricing & model selection
Go to the source
The Decoderthe-decoder.com
Publisher excerpt: Microsoft is weighing a fine-tuned version of Deepseek V4 as a cheaper model option for Copilot Cowork. The company is also switching to usage-based billing, since Copilot head Charles Lamanna says flat-rate pricing isn't sustainable. The move fits a broader pattern in the industry.