Microsoft (MSFT) reportedly losing on average over $20 a month per user on one AI product

According to The Wall Street Journal, Microsoft (NASDAQ: MSFT) has lost money on one of its first generative AI products.

With Microsoft and various other tech firms experimenting with various tactics to create profitable AI products, a report by the WSJ states, citing sources, that one product was losing, on average, more than $20 a month per user, with some users costing up to $80 a month.

Microsoft launched Github Copilot using AI from its partner OpenAI. The service, which has been popular with coders, helps programmers create, fix and translate code.

The publisher said more than 1.5 million people have used it, with the product helping to cut the time and effort needed to program.

The profitability of AI-powered products will change if computing costs come down. Even so, Microsoft is said to be charging a higher price for its next AI software upgrade.

The WSJ explains that as well as the regular monthly charges, starting at approximately $13 for the basic Microsoft 365 office software suite for business customers, the tech giant will charge a further $30 per month for the AI version.

By Sam Boughedda

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