Microsoft reports that it is losing nearly 3,000 yen per month per user with the code completion AI tool ``GitHub Copilot''

GitHub Copilot , a code completion AI tool announced by Microsoft in 2021, will be available as a paid service in 2022 for $10 per month (approximately 1,500 yen) or $100 per year (approximately 15,000 yen). I did. However, according to a report published by the economic paper Wall Street Journal, Microsoft is losing nearly $20 (about 3,000 yen) per month per GitHub Copilot user.

Big Tech Struggles to Turn AI Hype Into Profits - WSJ
https://www.wsj.com/tech/ai/ais-costly-buildup-could-make-early-products-a-hard-sell-bdd29b9f

Report: GitHub Copilot Loses an Average of $20 Per User Per Month - Thurrott.com
https://www.thurrott.com/cloud/290661/report-github-copilot-loses-an-average-of-20-per-user-per-month

Microsoft is reportedly losing lots of money per user on GitHub Copilot - Neowin
https://www.neowin.net/news/microsoft-reportedly-is-losing-lots-of-money-per-user-on-github-copilot/

GitHub Copilot is a code completion AI tool developed in collaboration with Microsoft and OpenAI, which automatically completes the ``continuation'' of source code that a human developer has partially entered. It understands a wide range of frameworks and dozens of programming languages, and is said to work particularly effectively with Python, JavaScript, TypeScript, Ruby, and Go.

Research shows that 'programmers who use AI for coding are more likely to generate less secure code than programmers who do not,' but in 2023 Wakefield Research, a major research organization, estimated that 500 developers In a survey conducted among respondents, 92% said they use AI coding tools at work and in their private lives.

GitHub survey reveals that 92% of developers love AI coding tools - GIGAZINE

GitHub Copilot is used by more than 1.5 million developers, and AI generates about half of the code written by users. However, even though Microsoft offers GitHub Copilot as a paid tool, it seems to be losing money due to the high cost of providing the AI tool.

The Wall Street Journal reports that GitHub Copilot is losing an average of more than $20 per user per month in the first few months of 2023. It seems that some heavy users are spending as much as $80 per month (about 12,000 yen), and it seems that the fee structure of ``$10 per month, $100 per year'' at the time of article creation is not profitable.

In September 2023, Microsoft will offer ``Microsoft 365 Copilot,'' an upper grade of the generation AI tool ``Microsoft Copilot'' that comes standard with Windows 11, at a relatively high rate of $ 30 (approximately 4,500 yen) per month. announced that it would. This pricing may be related to GitHub Copilot's losses.

Microsoft announces that AI assistant 'Microsoft Copilot' will be included as standard in Windows 11 with update on September 26, 2023 - GIGAZINE

In addition, Google also offers the generative AI tool `` Duet AI '', which can be used with the office service Google Workspace, to large companies for $ 30 (4,500 yen) per month .

To reduce significant costs in AI workloads, Microsoft is working on its own AI chip and is considering changes to free AI tools such as Bing Chat , Bing Image Creator , and Microsoft Copilot . ... apparently ...