Yusuf Mehdi, enforcement vice president and user main selling serviceman astatine Microsoft, speaks astatine a institution briefing successful Redmond, Wash., connected May 20, 2024. Microsoft unveiled a caller class of PC that features generative artificial quality tools built into Windows, the company's world-leading operating system.
Jason Redmond | AFP | Getty Images
Microsoft said Wednesday that it volition halt promoting a user subscription for artificial intelligence services and introduced a bundle blending AI features with accepted productivity apps.
The bundle institution introduced Copilot Pro astatine $20 per period in aboriginal 2024. Microsoft 365 Family, which allows for up to six users and 6 terabytes of unreality storage, goes for $12.99 each month. The caller Microsoft 365 Premium tier fundamentally combines some and volition outgo $19.99 a month.
"Other AI tools halt astatine chat — we present that positive truthful overmuch more," Yusuf Mehdi, Microsoft's user selling leader, wrote successful a connection provided to CNBC.
Microsoft is not discontinuing Copilot Pro, a spokesperson said.
Technology companies person been trying to capitalize connected the wide involvement successful tapping generative AI models to constitute documents and make videos.
Microsoft offers a escaped mentation of its Copilot assistant, successful enactment with Anthropic, Google and OpenAI, each of which merchantability paid subscriptions for consumers.
Microsoft 365 Premium comes with higher usage limits than the escaped Copilot and productivity bundle subscriptions targeting consumers.
As was the lawsuit with Copilot Pro and with user Microsoft 365 subscriptions, the caller offering enables conversations with Copilot successful Microsoft's Office apps specified arsenic Word, Excel and PowerPoint.
Microsoft is sweetening the caller connection with forthcoming entree to 2 AI reasoning agents that truthful acold person lone been disposable to corporate workers with Microsoft 365 Copilot subscriptions.
OpenAI relies connected Microsoft's Azure unreality to tally its ChatGPT adjunct and its underlying models, and Microsoft incorporates the models into its Copilot. Microsoft has invested much than $13 cardinal successful OpenAI. The companies are partners that besides compete.
Microsoft reported 89 cardinal user subscribers for Microsoft 365 services successful the June quarter, up 8%. Revenue maturation from those products has accelerated for 3 quarters successful a row, reaching 20% successful the June quarter.
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