By John Ballard, The Motley Fool
Publication Date: 2026-11-01 18:03:00
Microsoft (NASDAQ: MSFT) has long charged businesses for each worker using its software, a model known as seat-based pricing. The one reason to buy the stock for the next 10 years is that Copilot, its AI assistant, is moving from per-seat subscriptions to usage-based pricing. This could have a significant impact on Microsoft’s growth that isn’t yet priced into the stock.
The shift to usage-based pricing will allow Microsoft to sell into a bigger market and earn more per customer. The latest numbers in the earnings report show why this is a big deal.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
CEO Satya Nadella said, “The number of Copilot customers actively consuming credits through usage-based billing grew over 75% over the quarter.”…
