The software company introduced Copilot Pro at $20 per month in early 2024.
Microsoft 365 Premium is a new subscription tier that includes artificial intelligence capabilities, access to core productivity applications and cloud storage for $19.99 per month. The launch comes a year and a half after the software company came out with Copilot Pro, an AI-only subscription that costs about as much.
Yusuf Mehdi, executive vice president and consumer chief marketing officer at Microsoft, speaks at a company briefing in Redmond, Wash., on May 20, 2024. Microsoft unveiled a new category of PC that features generative artificial intelligence tools built into Windows, the company's world-leading operating system.. Microsoft 365 Family, which allows for up to six users and 6 terabytes of cloud storage, goes for $12.99 each month. The new Microsoft 365 Premium tier essentially combines both and will cost $19.99 a month. "Other AI tools stop at chat — we deliver that plus so much more," Yusuf Mehdi, Microsoft's consumer marketing leader, wrote in a statement provided to CNBC.Technology companies have been trying to capitalize on the broad interest in tapping generative AI models to compose documents and create videos.Disney sent cease and desist letter to Character.AI over use of copyrighted charactersMicrosoft 365 Premium comes with higher usage limits than the free Copilot and productivity software subscriptions targeting consumers. As was the case with Copilot Pro and with consumer Microsoft 365 subscriptions, the new offering enables conversations with Copilot in Microsoft's Office apps such as Word, Excel and PowerPoint. Microsoft is sweetening the new offer with forthcoming access to two AI reasoning agents that so far have only been available to OpenAI relies on Microsoft's Azure cloud to run its ChatGPT assistant and its underlying models, and Microsoft incorporates the models into its Copilot. Microsoft has invested more than $13 billion in OpenAI. The companies are partners that also compete. Microsoft reported 89 million consumer subscribers for Microsoft 365 services in the June quarter, up 8%. Revenue growth from those products has accelerated for three quarters in a row, reaching 20% in the June quarter.
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Microsoft 365 Premium bundles Office and AI for the same price as ChatGPT PlusMicrosoft is launching a new Premium subscription for consumers. It bundles together Copilot Pro and Microsoft 365 Family for $19.99 a month.
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