Tokens

GitHub is updating Copilot with an “AI Credits” system, moving from per-query pricing to a value-based model. This change utilizes “tokens” to measure AI processing, with both input prompts and generated code consuming them. While pricing tiers remain, users will receive AI Credits instead of query limits. One credit is valued at one cent, with Copilot Pro offering 1,000 credits monthly. Token costs vary based on LLM, query complexity, and model cache. Core features like code completions will remain free.

Microsoft CEO Satya Nadella highlighted energy costs as crucial for AI dominance, linking GDP growth to affordable AI power. He introduced “tokens” as a new commodity representing processing power, emphasizing that lower costs yield better economic expansion. Nadella also stressed that AI initiatives must demonstrably improve societal outcomes to maintain social license. For Europe to compete globally in AI, he urged a broader perspective, focusing on access and export competitiveness rather than solely on internal matters.