Microsoft might put China’s DeepSeek inside Copilot to tame its AI bills

https://media.thenextweb.com/2026/05/microsoft-copilot-uninstall-windows-11-bloatware.avif

Microsoft is considering putting a Chinese AI model inside its enterprise Copilot, and the reason is money.

The company told Axios it is exploring a self-hosted, fine-tuned version of DeepSeek V4, or another open-source model, as a cheaper option to power Copilot Cowork, the agentic assistant in its Microsoft 365 suite. It expects to offer a lower-cost model within weeks.

At the same time, Microsoft is moving Copilot Cowork to usage-based pricing, charging companies for the compute they actually burn rather than a flat fee.

Why even Microsoft can’t eat the bill

The shift is a window into the economics of agentic AI. Tools like Copilot Cowork, Anthropic’s Claude Code and OpenAI’s Codex call a model over and over as they work through a task, which is powerful and, it turns out, expensive.

“We have users who do hundreds of tasks a week, which is great, they’re way productive, but...

Copyright of this story solely belongs to thenextweb.com. To see the full text click HERE

Read more

https://tii.imgix.net/production/articles/17367/23dfaed4-746f-47c9-baab-9971c7b43c97.png?fm=jpeg&auto=compress&w=610

Sources: Baidu's chip unit Kunlunxin Technology plans a Hong Kong IPO at a $50B target valuation, asking investors to buy chips worth 3-7x their IPO investment

Sponsor Posts Fast, affordable law for startups — Soxton automates startup legal so founders can move faster and sleep better. We handle incorporation, advisor, employment and commercial contracts. Join the waitlist for early access! Stop vibe coding analytics — Equals AI turns questions about your business into auditable spreadsheet models and dashboards.