GitHub Copilot: Token Pricing Disrupts Developers

Starting June 1, 2026, GitHub Copilot will adopt a new pricing model based on the tokens used, replacing the previous fixed-rate subscription system. This change will align GitHub Copilot with the pricing practices already adopted by other companies in the field of large language models.

In this new system, users will be charged based on the tokens used for input and output from Copilot's language model. A token represents about three-quarters of a word, meaning that a text of 10,000 words would equate to 12,000-13,000 tokens. Users will receive "AI Credits" instead of a fixed number of monthly requests. For example, a Copilot Pro subscriber, paying $10 per month, will receive 1,000 AI credits, with each credit valued at one U.S. cent.

The token cost will depend on several factors, such as the model used and the complexity of the requests. Simple requests may not require the purchase of additional tokens, while complex requests will deplete AI credits more quickly. Code completions and modification suggestions will remain free, providing an advantage to users.

This change is part of a broader trend in the industry, where companies like Anthropic and OpenAI have also adopted token-based billing. Microsoft, the owner of GitHub, has so far been able to subsidize the use of Copilot through its other profitable divisions. However, this new model could discourage users from freely exploring and testing Copilot's features.

For companies using AI coding agents, like Uber, the financial implications are significant. Uber, for example, has already exhausted its AI budget for the year 2026, with 11% of its code updates generated by AI. Companies will now need to assess the efficiency gains from AI against the potential increase in costs associated with token consumption.