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March 04, 2025

AI Pricing - Microsoft cuts data centre plans and hikes prices in push to make users carry AI costs

 Pricing by Value and Services

  • For Model Providers: - Pricing is driven by token count, model usage, and infrastructure costs. As AI workloads scale, operational expenses push providers to adjust usage-based pricing.

  • For Enterprise Solutions: AI-powered features are now premium add-ons, with rising prices for AI services like Microsoft Copilot. These are strategically packaged to monetize AI as a high-value layer on top of existing products.

  • For Customers: They experience improved productivity but face significantly higher costs, especially in enterprise subscriptions where AI is bundled as an extra.

  • Key USP: The core value proposition is positioning AI as a high-value productivity tool that enhances workflows, automates tasks, and unlocks efficiency gains.

  • What’s coming next:
    Expect tiered AI feature offerings across products to maximize adoption while segmenting the market:

    • 🟢 Basic: Entry-level, limited AI capabilities (possibly free or low-cost).
    • 🟡 Premium: Advanced features focused on team productivity.
    • 🔵 Professional: Full-featured AI, enterprise-grade tools, customization, and priority performance.


Keep Thinking!!!

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