capital · May 18, 2026
Microsoft Moves GitHub Copilot to Consumption-Based Pricing and Improves Azure AI Margins
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Microsoft shifted GitHub Copilot to consumption-based pricing on May 13, 2026 as part of broader revenue model changes. The OpenAI partnership restructure eliminated revenue share on Azure sales of OpenAI models, improving margins on AI workloads. Wedbush analyst Daniel Ives raised the MSFT price target to $575 with an Outperform rating after the announcement. AI programs at Microsoft reached an annual revenue run rate exceeding $13 billion.
Spend governor blocked model creation: provider_circuit_open (lane=battlemap, provider=together)