Microsoft has eliminated all usage limits on Copilot’s Think Deeper and Voice features, allowing all users to access OpenAI’s o1 reasoning model for free and without restrictions. Initially restricted to Copilot Pro subscribers, these features can now be used without usage limits, marking a shift in how Microsoft is integrating AI across its products.
Think Deeper enhances AI responses by applying structured reasoning, generating logical multi-step answers instead of simple replies. The Voice feature, which was also previously limited for free users, now allows unlimited AI-driven voice interactions.
While this move removes major restrictions, Microsoft is still maintaining a two-tier system. Free users now have full AI access, but Copilot Pro subscribers continue to receive priority AI processing speeds, faster response times, and early access to experimental AI features.
This update is part of Microsoft’s long-term AI strategy, which has systematically removed paywalls from Copilot over recent months. On January 17, 2025, Microsoft expanded Copilot into Microsoft 365 Personal and Family plans, increasing subscription costs by $3 per month. Then, on January 30, Microsoft made OpenAI’s o1 reasoning model free for all Copilot users.
By embedding AI within existing software rather than offering it as a separate service, Microsoft is taking a different approach compared to competitors like OpenAI, which relies on standalone AI subscriptions. The strategy ensures widespread AI adoption while making it harder for paid AI models to compete on pricing.
What This Means for OpenAI’s Subscription Model
Microsoft’s decision raises challenges for OpenAI’s current pricing model. The same o1 AI model that now powers Copilot’s free Think Deeper mode is only available to ChatGPT Plus users at $20 per month or ChatGPT Pro subscribers at $200 per month. With Copilot now offering comparable structured reasoning for free within Microsoft’s ecosystem, some users may reconsider whether OpenAI’s paid tiers are still necessary.
While OpenAI continues to monetize AI access, Microsoft is leveraging its position as a software provider to integrate AI into widely used applications. This shift could push OpenAI to rethink its subscription strategy, especially if Microsoft continues expanding free AI capabilities.
How Microsoft’s AI Model Stands Against xAI and Anthropic
While Microsoft is making AI more accessible, its competitors are moving in the opposite direction. Elon Musk’s xAI recently doubled the price of X Premium+ to $40 per month, making its Grok 3 AI a paid feature. This contrasts sharply with Microsoft’s strategy, which embeds AI inside existing products rather than monetizing it separately.
Anthropic, meanwhile, is taking a different approach with Claude 3.7 Sonnet. Unlike Copilot’s Think Deeper, which automatically applies structured reasoning, Claude 3.7 allows users to adjust the model’s response time based on complexity.
“You can pick when you want the model to answer normally and when you want it to think longer before answering,” Anthropic stated in its official release. While this provides flexibility, Claude remains a paid product, positioning Microsoft’s Copilot as the most accessible AI-driven assistant using frontier AI models among the major players.
Claude 3.7 Sonnet outperforms OpenAI’s o1 model on various benchmarks, so does DeepSeek R1 and xAI’s Gro 3 Beta. OpenAI’s o3-mini-high model is currently leading the AI reasoning race, with a release of GPT-4.5 expected these days and GPT-5 in the coming months.
What This Means for AI Monetization and Accessibility
AI companies are increasingly diverging on whether to charge for access or make AI freely available within existing services. Microsoft’s strategy prioritizes mass adoption, reinforcing Copilot’s role as a standard feature rather than a premium upgrade.
This creates pressure on competitors relying on direct AI subscriptions, particularly OpenAI, which must now justify its paid tiers when similar AI reasoning tools are free elsewhere. Ironically, Microsoft is powering Copilot with OpenAI’s models, thanks to their still exclusive partnership. No surprise, that OpenAI is eying SoftBank as a new partner for IT infrastructure.
Microsoft’s approach also raises broader industry questions about AI monetization. If more companies integrate AI into their ecosystems at no additional cost, will paid AI assistants remain viable? OpenAI and Anthropic have positioned AI as a premium service, but Microsoft’s decision to provide advanced reasoning features without a paywall challenges this model.
Microsoft’s AI Expansion and Potential Industry Impact
By embedding AI within Windows, Microsoft 365, and Edge, Microsoft is ensuring that Copilot becomes a core feature of its software ecosystem. This mirrors how Microsoft historically integrated Internet Explorer into Windows, shaping how users accessed the web. While this strategy enhances user adoption, it may also draw scrutiny from regulators questioning whether Microsoft is using its dominance to squeeze out competitors offering AI as a standalone service.
For OpenAI, which still relies on a subscription-based business model, Microsoft’s move presents a direct challenge. If Microsoft continues to expand free AI capabilities within Copilot, OpenAI may need to explore new monetization strategies or differentiate its AI models further to maintain user demand.
Table: AI Model Benchmarks – LLM Leaderboard
[table “18” not found /]Last Updated on March 3, 2025 11:27 am CET
