Microsoft is moving Copilot Cowork to usage-based pricing and is considering a Microsoft-hosted version of DeepSeek as a cheaper option

Microsoft is shaking up how enterprises pay for its Copilot Cowork AI tool. The company is ditching its current pricing structure in favor of usage-based billing as it broadens access to the platform.

The bigger eyebrow-raiser: Microsoft is actively exploring hosting DeepSeek as a cheaper model option within its ecosystem. That would give enterprise customers a lower-cost alternative while keeping everything under the Microsoft umbrella.

The move signals two things at once. First, Microsoft clearly wants to make Copilot Cowork more accessible by aligning costs with actual consumption rather than flat fees. Second, the company isn't married to premium-only AI models — it's willing to offer budget options if that's what customers need.

Hosting DeepSeek on Microsoft infrastructure would let the company maintain control over data and security while undercutting competitors on price. A pragmatic play in an increasingly crowded enterprise AI market.