Microsoft (MSFT) Explores DeepSeek AI for Copilot Cowork, Plans Usage-Based Billing

Microsoft (MSFT) is considering integrating China-based AI startup DeepSeek's models into its enterprise AI platform, Copilot Cowork, to offer lower-cost options, Axios reported Tuesday, June 16, 2026. The tech giant also plans to shift Copilot Cowork to a usage-based billing model, addressing the escalating computational costs driven by the proliferation of agentic AI tools. This move reflects Microsoft's accelerated multi-model strategy, aiming to diversify beyond OpenAI and Anthropic. The company is testing fine-tuned DeepSeek V4 and other open-source models as cost-effective alternatives. Executive Vice President Charles Lamanna stated that unlimited usage is unsustainable due to high-efficiency users executing hundreds of tasks weekly. Microsoft assures that any DeepSeek integration would be an optional, Azure-managed solution, maintaining data security and compliance within its cloud environment. Microsoft's shares fell 1.48% to $393.83 on June 16, 2026.