Microsoft may sign one of the biggest deals yet for its AI-powered CoPilot assistant: Report
Microsoft is reportedly working on one of the biggest deals yet for its AI-powered CoPilot assistant. According to a Business Insider report, the software giant's Chief Commercial Officer Judson Althoff told employees that a single customer with more than 1 million
Microsoft 365 licenses
will soon be adding Copilot to its setup.
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The report further says that the agreement could still change, and Microsoft might not follow its usual per-user monthly pricing. Instead, the company could try consumption-based billing, a new trend in AI-related services.
If Microsoft were to charge its standard $30 per user per month for Copilot, the deal could be worth around $360 million a year. However, it's unlikely that a customer buying in such volume would pay full price.
Adding over a million users in one go would be a big boost for Microsoft's efforts to expand Copilot's adoption. While the company has heavily invested in AI tools, it's still working out how to best market and price them. Some customers and insiders have questioned Copilot's effectiveness and Microsoft's evolving AI strategy.
To address this, Microsoft has recently updated how it presents its AI offerings to customers, aiming to simplify the pitch and boost adoption, internal documents show.
Likely partners of rumoured Microsoft's deal
While the identity of the customer remains unknown, but 'there aren't many companies with workforces that size,' the report states. Amazon is one possible candidate, given its size. But a company employee told Business Insider that Amazon is unlikely to adopt Copilot due to internal rules against using external AI tools. Amazon also declined to comment.
A previous report by the publication quoted an internal memo which said that Amazon employees will migrate to Microsoft's cloud applications on a "rolling basis".
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