Microsoft CEO Satya Nadella announced the company is planning a fundamental shift in its software pricing strategy, moving from a "per-user" to a "per-agent" model. This change reflects the growing role of autonomous AI systems that perform work alongside human employees. The new model would charge customers based on the AI agents they deploy rather than the number of human users. Nadella, speaking on the "Dwarkesh Podcast," explained that Microsoft's business is evolving from providing end-user tools to becoming an infrastructure provider for these AI agents. He positioned existing services like Microsoft 365, which generates over $100 billion in annual revenue, as the foundational workspace for these emerging AI agents. This strategic pivot aims to align Microsoft's revenue with the value created by autonomous systems. This move signals a broader industry transformation as technology companies reconsider how to monetize software in an AI-driven world where intelligent agents, not just humans, are the primary users. While a timeline wasn't specified, the announcement points to a significant long-term change in how Microsoft will commercialize its core enterprise software products.
Microsoft Signals Major Business Model Shift to "Per-Agent" AI Pricing
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