Microsoft has integrated OpenAI’s GPT-o1 reasoning model into Copilot, offering it “free” for all users—just weeks after raising Microsoft 365 Copilot prices by $3/month. The move follows growing competition from China’s DeepSeek R1. Despite investor concerns over AI costs and Azure growth, Microsoft’s AI revenue hit $13 billion annually. Critics argue the “free” label masks hidden costs amid ongoing subscription price hikes.