Microsoft Losing Money on GitHub Copilot Due to High AI Costs

Microsoft loses around $20 per GitHub Copilot user per month due to high AI operating costs.

Generative AI models like ChatGPT are expensive to run, costing multiple cents per query.

Companies are trying different models - capped usage, charging by usage, or flat fees - to make AI services profitable.

Microsoft uses a very complex AI model for GitHub Copilot costing over $20 per user monthly.

Experts think 2023 may see a shift from AI excitement to focus on profitability and financial rigor.