Github Copilot switches to token-based billing, sparking developer backlash

Microsoft's Github Copilot is ending its flat-rate billing model in favor of a usage-based system. Starting June 1, users will pay based on the number of tokens they consume while coding, rather than a fixed monthly subscription fee. The shift has triggered widespread frustration among developers who expect significantly higher bills.

Developers have flooded social media with complaints about the price change. One Reddit user said their monthly bill would jump from around $29 to nearly $750. Another reported costs climbing from $50 to approximately $3,000 per month. A third user called the new pricing "stupidly expensive" and said they were cancelling their subscription because it was "no longer cost-effective or useful in any practical way."

Some Copilot users have defended the new pricing structure, arguing that the extreme increases reflect poor coding practices rather than a flawed business model. These defenders contend that developers generating such high token usage are relying on "vibe coding" — writing code through trial and error without strong technical knowledge — rather than using the tool efficiently. One user wrote that affordable pricing remains possible "for even small outfits if used as a tool, on pretty much any provider."

The pricing shift raises questions about Microsoft's previous economics. The company must have absorbed substantial costs to subsidize unlimited or cheap token usage under the old flat-rate system. One developer asked on Reddit: "Holy fuck how much money was copilot losing." The exact financial details behind the old model remain unclear.

Other developers have argued that Microsoft itself bears responsibility for the sticker shock. These critics point out that Microsoft encouraged users to deploy Copilot widely and even made it simpler to request large token-consuming tasks. One developer wrote that Microsoft "kept making it easier and easier to burn through massive numbers of tokens on single premium requests that could churn for hours or even days while spawning dozens or even hundreds of sub-agents." This user concluded: "the only one at fault here is Microsoft."

TechCrunch contacted Microsoft for comment but did not receive a response by publication time. The company has not publicly explained the reasoning behind the pricing change or addressed developer concerns about cost increases.