Microsoft’s stock (NASDAQ:MSFT) experienced a nearly 3% surge, reaching an all-time high on Tuesday. The boost came after the U.S. tech giant unveiled the pricing details for its artificial intelligence tool, 365 Copilot, designed for integration with its Office software suite. The announcement revealed that the monthly cost for the tool would be set at $30 per user, signaling a significant increase compared to existing software prices.
During the virtual Inspire conference, Microsoft (NASDAQ:MSFT) disclosed that the new pricing structure would apply to its E3, E5, Business Standard, and Business Premium customers. These customers are currently subscribed to monthly plans ranging from $12.50 to $57 per user. For existing E3 users, the introduction of Copilot would result in an approximate 83% increase in their monthly fees for Office 365.
In an interview with the Financial Times, Microsoft CEO Satya Nadella described Copilot as the third leg of Office, alongside Word, Excel, and Teams. This statement highlights the company’s intention to position Copilot as a crucial component of its productivity suite, enhancing user experience and efficiency.
To address concerns regarding the substantial price hike, Microsoft emphasized that the adoption of Copilot is entirely voluntary. At the conference, the company clarified that the tool has been undergoing extensive testing with over 600 customers since its initial unveiling in March. This phased approach aims to ensure a seamless transition for users and provide them with the option to opt in based on their specific needs.
In addition to the Copilot announcement, Microsoft (NASDAQ:MSFT) also introduced a more secure iteration of its Bing search engine chatbot, called Bing Chat Enterprise. This enterprise-focused version follows the consumer version’s launch in February, which coincided with Microsoft’s partnership with OpenAI, the creator of ChatGPT, a powerful language model utilizing artificial intelligence. The partnership, valued in the multi-billion dollar range, has resulted in several innovative advancements, including the AI-powered Edge browser.
Microsoft, headquartered in Redmond, Washington, further disclosed the expansion of its artificial intelligence collaboration with Meta Platforms (NASDAQ:META) and LLaMA 2, Meta’s advanced language model. As part of the expanded partnership, Microsoft plans to make this language model available on its Azure cloud computing platform and Windows operating system, signaling an effort to harness the capabilities of AI and offer enhanced services to its customers.
The unveiling of Copilot’s pricing structure, coupled with the introduction of Bing Chat Enterprise and the extended AI partnership, has propelled Microsoft’s stock to new heights. Investors are optimistic about the company’s continued focus on integrating AI technologies into its product offerings, which is expected to drive future growth and solidify its position as a leader in the technology industry.
Featured Image: Unsplash @ wocintechchat
Author Faith Yakubu 
