GitHub shifts Copilot to usage-based billing starting June 1

GitHub announced a change to usage-based billing for its Copilot AI service, effective June 1, to align costs with actual AI consumption. Subscribers will receive monthly AI Credits matching their subscription fees, with extra usage charged by token rates. The move addresses rising inference costs from heavy users.

GitHub, owned by Microsoft, revealed plans to replace its current request-based system for Copilot with one tied directly to AI resource use. Under the existing model, users get fixed monthly allocations of requests and premium requests, regardless of the varying computational demands of tasks like quick queries or extended coding sessions. GitHub stated that a simple chat and a multi-hour autonomous session currently cost users the same, a disparity it has subsidized until now but can no longer sustain amid escalating demand for AI resources. The new system provides each Copilot subscriber with AI Credits equivalent to their monthly payment. Beyond that, charges will apply based on tokens processed—input, output, and cached—using published API rates for models. For example, OpenAI's GPT variants range from $4.50 to $30 per million output tokens. Basic features such as code completion and Next Edit remain free of credits, while code reviews will incur costs via GitHub Actions minutes. Users can preview their bills under the new model before the June 1 rollout. This follows recent actions by GitHub, including pausing new subscriptions, tightening limits, and dropping advanced Claude Opus models from Pro plans to ensure service reliability. GitHub described the change as promoting sustainability by matching pricing to real usage and costs, reducing the need to restrict heavy users. Similar adjustments are underway elsewhere, with Anthropic charging enterprise users full compute costs and tweaking limits during peak hours.

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Dramatic illustration of Anthropic imposing a paywall on Claude AI, blocking third-party agents from overloaded servers.
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Anthropic ends unlimited Claude access via third-party agents, requires extra payments for heavy use

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Anthropic has restricted unlimited access to its Claude AI models through third-party agents like OpenClaw, requiring heavy users to pay extra via API keys or usage bundles starting April 4, 2026. The policy shift, announced over the weekend, addresses severe system strain from high-volume agent tools previously covered under $20 monthly subscriptions.

On February 5, 2026, Anthropic and OpenAI simultaneously launched products shifting users from chatting with AI to managing teams of AI agents. Anthropic introduced Claude Opus 4.6 with agent teams for developers, while OpenAI unveiled Frontier and GPT-5.3-Codex for enterprise workflows. These releases coincide with a $285 billion drop in software stocks amid fears of AI disrupting traditional SaaS vendors.

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OpenAI has launched GPT-5.4, including variants Thinking and Pro, aimed at improving agentic tasks and knowledge work. The update features enhanced computer-use capabilities and reduced factual errors, amid competition from Anthropic following a US defense deal controversy. The models are available immediately to paid users and developers.

OpenAI has started testing advertisements in its ChatGPT chatbot for users on free and low-cost plans in the United States. Paid subscribers remain unaffected, while the company emphasizes privacy protections and user controls. This move aims to fund broader access to AI features amid industry competition.

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Anthropic has extended its memory capability to the free tier of its Claude AI chatbot, allowing users to reference past conversations. The company also released a tool to import memories from competing chatbots like ChatGPT and Gemini. This update coincides with Claude's surge in popularity amid a dispute with the US Department of Defense.

OpenAI is shifting resources toward improving its flagship chatbot ChatGPT, leading to the departure of several senior researchers. The San Francisco company faces intense competition from Google and Anthropic, prompting a strategic pivot from long-term research. This change has raised concerns about the future of innovative AI exploration at the firm.

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Google has announced that its experimental AI prototype, Genie 3, is now available to subscribers of its highest-tier AI plan. The tool allows users to generate and navigate interactive 3D worlds using simple text prompts. Previously limited to trusted testers, this expansion marks a step toward broader access for the 18-and-older audience.

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