Microsoft's GitHub Copilot shifts to per-token pricing, sparking debate over AI cost structures as companies prepare for public offerings

Microsoft changed GitHub Copilot's pricing model from a flat rate to per-token charges, prompting discussion about how cost increases will ripple through the AI industry as Anthropic and other AI companies plan to go public.

The shift reflects broader tensions: AI products have been heavily subsidized by investor money, and as companies now pass more costs to customers, usage patterns and business models may need to transform—similar to how Uber went through unprofitable phases before reaching scale.

Within six months, the industry's "tokenmaxxxing" obsession peaked and then became seen unfavorably due to high costs, illustrating how quickly business models and risk factors are evolving ahead of upcoming IPO filings.