Microsoft is Losing Huge Sums on GitHub Copilot

Microsoft is losing huge sums on GitHub Copilot and experts and users are kind of worried about this new development. For users in particular, they have one question on their lips and that is whether GitHub Copilot might be getting more expensive anytime soon.

Microsoft Losing Huge Sums on GitHub Copilot

Microsoft Losing Huge Sums on GitHub Copilot

GitHub Copilot as you should know has been costing Microsoft up to $80 per every user on the platform in some cases according to several reports as the firm continues to struggle to make its AI assistant turn in a profit.

And according to a Wall Street Journal report, the figures in question reportedly come from an unnamed individual who is very much familiar with the company, who in turn noted that the Microsoft-owned platform was reportedly losing an average of $20 per user every month in the first couple of months of the year 2023.

It is still very much unclear as to whether things have improved since then, and the firm did not respond immediately to a request for clarification on the matter.

This is not the first time that Microsoft has been examined for its profitability. Back in June, unredacted court documents reportedly uncovered that Azure was apparently proving to be far less profitable than Amazon Web Services (AWS).

GitHub Copilot Makes Use of GPT Models from OpenAI 

GitHub Copilot makes use of GPT models from OpenAI in order to help solve coding problems. Microsoft has famously invested billions into the AI startup and company and has since then gone on to make use of its models to help power countless other AI tools and services across its businesses, and this is including Microsoft 365 Copilot for its office software, which reportedly costs users $30 per month which in turn is considerably more than office software-only subscriptions without any help from AI.

How Artificial Intelligence Works

Artificial intelligence makes use of models that are capable of effectively processing billions of parameters really fast, but they however require large amounts of resources such as power and water for cooling. Data centers in question, which are already under a lot of scrutiny for their environmental impacts, are being equipped with so many powerful (and more expensive) components to help handle this.

How Various Companies Are Contributing To Solve the Underlying Issues of AI

Different firms have introduced several ways to help control spending, and this is inclusive of imposing caps on just how many prompts a worker may get to use in any given month.  And for now, though, it looks very much like GitHub Copilot could be severely underpriced and is also proving to be good value, for customers at the least.



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