Microsoft's GitHub shifts to metered AI billing amid cost crisis
GitHub is transitioning GitHub Copilot from a request-based to a usage-based billing model effective June 1, 2026, due to unsustainable AI inference costs. The change introduces GitHub AI Credits to meter consumption based on token usage across input, output, and cached data. While subscription prices remain unchanged, users will receive monthly credit allotments and can purchase overages. Unlimited access will still apply to basic features like code completions and Next Edit Suggestions.
- ▪GitHub is replacing its request-based billing for Copilot with a usage-based model tied to token consumption starting June 1, 2026.
- ▪The new system uses GitHub AI Credits, where 1 credit equals $0.01, to standardize pricing across different AI models.
- ▪Subscription prices will stay the same, but users will get monthly AI Credit allowances, such as 1,000 for Copilot Pro and 3,900 for Copilot Pro+.
- ▪Once credits are exhausted, users can set an overflow budget or wait for the next billing cycle to regain usage.
- ▪Basic Copilot features like code completions and Next Edit Suggestions will remain unlimited on paid plans.
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AI + ML Microsoft's GitHub shifts to metered AI billing amid cost crisis The all-you-can-eat AI buffet is coming to an end Thomas Claburn Tue 28 Apr 2026 // 00:31 UTC Microsoft is closing the AI buffet offered to GitHub Copilot customers, acknowledging that it can’t sell AI like Red Lobster's Endless Shrimp. The US seafood restaurant's all-you-can-eat shrimp promotion led the company to bankruptcy in 2024 and while Microsoft is nowhere near so financially overextended, the software giant's code hosting biz has decided it no longer wants Copilot to operate at a loss. GitHub is therefore shifting Copilot from request-based billing to usage-based billing on June 1, 2026. GitHub absorbed much of the escalating inference cost, but the current premium request model is no longer sustainable Under request-based billing, GitHub Copilot subscribers will be allowed to submit a set number of premium requests, with certain models priced at a higher request rate but without any consideration for the complexity of the request. So complex prompts that require a lot of "thinking" often cost GitHub more than the company earned in subscription fees. "Today, a quick chat question and a multi-hour autonomous coding session can cost the user the same amount," explained Mario Rodriguez, chief product officer on the GitHub product team, in a blog post. "GitHub has absorbed much of the escalating inference cost behind that usage, but the current premium request model is no longer sustainable." <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2afACi4iYvl0UDBZxL7999QAAAUo&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2afACi4iYvl0UDBZxL7999QAAAUo&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0" alt=""> </a> Under usage-based billing, there's a more direct correlation with metered tokens – sets of three or four characters that represent the basic economic unit for selling AI services. <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44afACi4iYvl0UDBZxL7999QAAAUo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44afACi4iYvl0UDBZxL7999QAAAUo&t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0" alt=""> </a> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33afACi4iYvl0UDBZxL7999QAAAUo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33afACi4iYvl0UDBZxL7999QAAAUo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" alt=""> </a> It's not quite as simple as $X for X tokens – different…
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