Daily cloud and web hosting news coverage by HostingDiscussion.com

CloudFest Americas 2026

OneDrive cloud storage shrinks as Microsoft adds shared Copilot AI

Microsoft is handing Family and Premium subscribers something they asked for while quietly removing something they already had. Both changes were announced together, and subscribers are reacting to them very differently.

The good news comes first. Subscribers will soon be able to share Copilot and AI benefits with up to five other members, according to The Verge. When Microsoft added those features last year, only the plan owner could use them. The company’s support page still says the benefits “cannot be shared with others,” but an email to customers says sharing will roll out over the coming months. For a family paying for AI tools, that is a sensible fix.

The trade-off lands on storage. Until now, every member of a plan could claim 1TB of OneDrive space, which added up to as much as 6TB per subscription. Next year, both plans drop to a 2TB shared pool that the primary subscriber and up to five members draw from together. Microsoft says the pool offers “a more flexible experience” and that members will not be able to view each other’s files.

Timing matters here. For current subscribers, the change starts at the first renewal after May 2, 2027. Prices look unlikely to fall in return, with the Family plan at $129.99 a year and Premium at $199.99. So a household that splits six accounts across the old allowance could see its usable space shrink by two-thirds while paying the same bill.

Reaction on Reddit has not been gentle. One user said the family package was the only thing tying them to Microsoft and planned to move the family to a NAS. Another suspected the “flexible experience” really means better margins for Microsoft, with the company shedding people who simply park data there.

I think that second reading deserves attention, even though Microsoft has not said it. Cloud storage costs money, and AI features cost more. Trading cheap terabytes for shared AI access is a plausible way to rebalance the books.

For now, nobody needs to act. Microsoft says it will email details before each change takes effect. Families with large photo libraries should still check their current usage and decide whether 2TB will stretch far enough.

Share this post

Web Hosting News

Fresh takes, great finds and engaging stories on the cloud and web hosting industry. Send us a news tip.

Related Stories

Most Viewed

Supporters

Dedicated Servers

Enterprise Dedicated Servers - Intel/AMD EPYC & RYZEN - 100% Uptime 24/7 Support

Save 37% Off Plesk License

Official Plesk Partner, Instant License Delivery, No Contract Commitment. Grab Your Savings NOW!

Up to 30% Off on KVM VPS

Significant discounts on KVM VPS SSD. Worldwide Locations. Full Root Access. Instant Deployment.

.CA Domain for only C$10.99

Get a .CA domain, with domain privacy, full DNS record control, domain forwarding, excellent support.

Web Design and SEO

Premium professional WordPress sites that will not break your wallet. Optimized for SEO to drive traffic.

Interviews

Members Recently Online