Microsoft has introduced usage-based billing for Copilot Cowork, which is now generally available.
Microsoft unveiled Copilot Cowork in March, pitching it as an AI agent that’s capable of independently performing long-running, multi-step tasks — even when a user’s computer is off.
It’s built on the same technology that underpins Anthropic’s Claude Cowork. Unlike Claude Cowork, which can interact directly with files and applications on a user’s computer, Copilot Cowork runs in Microsoft’s cloud environment and acts on documents held in a customer’s Microsoft 365 tenant.
Microsoft
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).
The usage-based pricing is calculated from four components, according to Microsoft: “model use, context retrieval, tool calls, and runtime.”
In practice, this means more intensive tasks that draw on multiple sources, use “deep reasoning” and generate two or more outputs will lead to higher costs — denoted in Copilot Credits.
There are two payment options: pay as you go — priced at 1 cent per credit — 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 “soon after” the general availability launch, Microsoft said).
Copilot Cowork customers can select from multiple AI models, including Anthropic’s Opus 4.8 and Sonnet 4.6, while those enrolled on the Frontier program can access OpenAI’s GPT 5.5 and Microsoft’s own Cowork 1 model.
Microsoft did not immediately respond to a request for more details on its own model, though Axios has reported the company is considering a hosted version of DeepSeek’s open source models.
Microsoft also announced new integrations with third-party apps such as Miro and Monday.com, with more — such as Adobe, Box, and Canva — coming soon.