Microsoft's New AI Subscription May Actually Live Up to the Hype
Shares of software giant (NASDAQ: MSFT) jumped on Tuesday, rising about 4%. The catalyst for the stock's rise was the company's unveiling of its pricing for its new artificial intelligence (AI) assistant for its Microsoft 365 suite. Microsoft 365 Copilot, which helps streamline and supplement tasks across Word, PowerPoint, Outlook, Teams, and Excel, will cost an impressive $30 per user, per month.
This aggressive pricing adds substance to what was arguably a somewhat speculative product development effort until now. At such a steep price, Microsoft's revenue and operating income could see a significant boost from Copilot as workers embrace the assistant to alleviate tedious tasks and unleash creativity and productivity.
Giving credibility to Copilot and its aggressive $30 price point, investors should note that it wasn't arbitrarily decided. Instead, the company arrived at the price point as it received feedback from a robust early access program. The Copilot early access program boasted 600 enterprise customers globally. With such a large group to get feedback from, Microsoft must think customers will pay up for this high monthly price tag.
Source Fool.com
Microsoft Corp. Stock
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