Microsoft has opened the floodgates for its Copilot AI, removing the 300-seat minimum for businesses and introducing a subscription for individuals. This shift from a restricted, high-end enterprise model to a broad-based offering is significant, and the timing reveals a core challenge of the generative AI era.
The initial cautious approach was not just about refining the product. As IBRS noted, powerful AI models are incredibly expensive to operate at scale. “People are beginning to realise that this stuff is expensive to run… Microsoft knew it was going to be a problem, so they’ve been very careful about limiting its growth.”
This staggered release was a deliberate strategy to manage the immense operational costs and infrastructure demands. By carefully controlling the initial rollout, Microsoft could avoid being overwhelmed. This wider launch signals a new phase. Having managed the initial growth, the company is now confident it can scale its AI services sustainably and is moving to monetise its platform across the entire market, not just the top end of town.
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