‘Goodbye, Copilot’: Microsoft faces backlash as Github Copilot ends flat-rate AI pricing from June 1

Microsoft is set to make a big change to GitHub Copilot’s pricing structure from tomorrow, i.e. 1 June, and developers are openly voicing their frustration about the change, with some even threatening to switch to alternatives.

Before we talk about what developers and coders are saying, let’s first understand why Microsoft is at the receiving end of this backlash in the first place.

Why is Microsoft under fire from developers?

Microsoft is changing its pricing structure from the existing flat-tier model to a new usage-based system where costs for users will be calculated based on token consumption.

Under the new policy, Copilot Pro subscribers will receive $10 worth of monthly AI Credits, while Copilot Pro+ users will get $39 in monthly credits.

In a blog post explaining the change, Microsoft said the move to a usage-based system “better aligns pricing with actual usage” and is necessary to create a “sustainable, reliable Copilot business and experience for all users.”

However, long-time GitHub Copilot users are now openly voicing their frustrations online, fearing that the AI credits-based system will make the coding assistant more expensive to use, especially when compared to rivals like Cursor, Codex, Claude Code, OpenCode, and DeepSeek.

How are netizens reacting?

Across social media platforms like Reddit and X (formerly Twitter), developers have begun raising their voices against the new usage-based model, with many suggesting that they are looking for alternatives, while others state that they have already switched to rivals like DeepSeek or Codex for higher usage limits.

“Goodbye Copilot. You were great while it lasted,” wrote a user on Reddit.

“What a joke,” chimed in another user.

“With Copilot shifting to usage-based billing, it’s time to say goodbye. I’ve already jumped ship to Codex. With Copilot’s new pricing, I just don’t see them offering more tokens than Codex at the same price point,” added a frustrated user on Reddit.

Some users on Reddit pointed to the broader change in the AI industry as compute costs continue to rise, writing, “What we’re seeing is basically the end of AI being ridiculously subsidised. The real cost is starting to become apparent (and it’s pretty damn high).”

Another user added, “AI is becoming so expensive nowadays that I’ve got to start thinking again.”

“Microsoft could easily keep subsidising Copilot, they don’t want to. I think this has more to do with their feud with OpenAI than anything else,” complained another user.

Not just Microsoft, Google made a similar change

Notably, Google also made a similar change to its AI Pro plan recently when it replaced daily prompt limits for Gemini with usage credits allocated on a five-hour rolling window.

The company also did not explicitly list these limits, writing in an email that AI Pro subscribers would get limits that are “four times higher” than those available to free users, but it did not disclose the exact number of tokens users receive.

Similar to Microsoft, Google also faced flak from users for making the changes to its plan without clearly communicating them.