Microsoft bets on enterprise AI as Nadella pushes Copilot as the ‘OS for work’

Key Summary

Microsoft is pushing Copilot as the "OS for work" with a revamped AI tool featuring chat and code functions. The company has announced a new pricing structure, combining per-user subscriptions with usage-based credits, tying cost to AI model usage. This shift towards token-based pricing aims to better cost efficiency and performance. Microsoft has 30 million paid Copilot subscribers and $37 billion in annual AI revenue. CEO Satya Nadella has framed 2026 as a turning point for AI's enterprise impact, with a focus on governance structures and effective memory management. The new pricing change could make AI cheaper for light users, while flat seat pricing caps revenue per user. Microsoft's use of its own MAI models could also reduce its reliance on outside model providers and increase pricing flexibility.