According to insider reports, Microsoft is losing massive amounts of money with GitHub Copilot. The group is faced with the challenge of making profits with generative tools for artificial intelligence (AI). But things are looking bleak at the moment.
How do you make money with an AI?
That’s what the Wall Street Journal (WSJ) reports – and you’re generally asking yourself, if you can’t make money with GitHub Copilot, then what about all of Microsoft’s other AI tools?
Generative AI tools are expensive to operate because they require powerful servers with expensive processors that also consume a lot of power.
Companies like Microsoft, Google, and Adobe are experimenting with different pricing models for AI products. These include usage-based billing, additional fees for AI features, and the use of credits to limit usage.
For example, Microsoft currently charges $30 per user per month for its various Microsoft 365 Copilot features for businesses. When the first Copilot for GitHub launched, Microsoft initially only charged $10 per month. The Wall Street Journal has now received information about how expensive this experiment is for Microsoft.
Deep in the red
Due to high operating costs, GitHub Copilot is heavily in the red. In the first few months of this year, the company lost an average of more than $20 per month per user. Some users were costing the company up to $80 a month or more, an insider told WSJ.
However, how many users the service has is unknown and so the loss remains in the dark for the time being. However, one can assume that Microsoft calculated better with the second launch at $30 per user per month for Microsoft 365 Copilot – otherwise Copilot will be a real debacle for the company.
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