Microsoft launches Copilot Cowork with usage-based pricing
Microsoft has introduced usage-based billing for Copilot Cowork, which is now generally available.Β
Microsoft unveiled Copilot Cowork in March, pitching it as an AI agent thatβs capable of independently performing long-running, multi-step tasks β even when a userβs computer is off.Β
Itβs built on the same technology that underpins Anthropicβs Claude Cowork. Unlike Claude Cowork, which can interact directly with files and applications on a userβs computer, Copilot Cowork runs in Microsoftβs cloud environment and acts on documents held in a customerβs Microsoft 365 tenant.
On Tuesday, Microsoft unveiled pricing details for Copilot Cowork, which involves usage-based billing in addition to a Microsoft 365 Copilot license ($30 per user each month for large enterprises before discounts, and $20 for Microsoft 365 Copilot for Business).Β
The usage-based pricing is calculated from four components, according to Microsoft: βmodel use, context retrieval, tool calls, and runtime.βΒ
In practice, this means more intensive tasks that draw on multiple sources, use βdeep reasoningβ and generate two or more outputs will lead to higher costs β denoted in Copilot Credits.Β
There are two payment options: pay as you go β priced at 1 cent per credit β and P3, where customers commit to usage volume in advance and receive a discount.
Cowork is turned off by default; IT admins can decide when to make it available and which employees get access. Admins can also impose spending limits at the tenant, group, and user level, and receive notifications when spending reaches a certain level.
Users will also be able to see how much each tasks costs in credits (available βsoon afterβ the general availability launch, Microsoft said).Β
Copilot Cowork customers can select from multiple AI models, including Anthropicβs Opus 4.8 and Sonnet 4.6, while those enrolled on the Frontier program can access OpenAIβs GPT 5.5 and Microsoftβs own Cowork 1 model.
Microsoft is considering hosting a version of DeepSeekβs open source models.Β βWe are actively exploring a range of options that meet those requirements, and DeepSeek is one of several models under consideration. Weβll share more specifics on the underlying model closer to release,β said a Microsoft spokesperson.
Microsoft also announced new integrations with third-party apps such as Miro and Monday.com, with more β such as Adobe, Box, and Canva β coming soon.
This article was updated on June 19 to add Microsoftβs comment on DeepSeek.

