Despite charging for the service, Microsoft and partner OpenAI are losing money on GitHub Copilot to the tune of $20 per month per user.
According to a report by The Wall Street Journal, GitHub has become a case in point for the challenges tech companies face monetizing AI despite it being the next big thing in the tech industry.
According to the Journal, while Microsoft and OpenAI are losing an average of $20 per month per user, some customers are costing the two companies even more:
Individuals pay $10 a month for the AI assistant. In the first few months of this year, the company was losing on average more than $20 a month per user, according to a person familiar with the figures, who said some users were costing the company as much as $80 a month.
AI may be poised to revolutionize a broad range of industries, but companies will have to solve the monetization issues before it can truly achieve the adoption many hope for.