Microsoft gives Copilot a much-needed overhaul, and the stock deservedly soars — SkimNews
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- Microsoft shares jumped more than 4% after the Copilot overhaul, making it the best-performing "Magnificent Seven" member in Friday's session and outpacing the iShares Expanded Tech-Software Sector ETF, which fell about 0.4%.
- The overhaul unifies Copilot's Chat and Cowork features into one app, adds a Code feature targeted at non-technical employees, introduces an Autopilot tab for autonomous agents, and fully embeds Microsoft Office (Word, Excel) within Copilot, according to CEO Satya Nadella, who called it the "biggest update to Copilot to date."
- Microsoft is restructuring Copilot pricing: basic Chat stays on a flat per-user license fee, while the more advanced Cowork, Code and Autopilot features shift to usage-based pricing.
- EVP Jacob Andreou told CNBC Copilot is becoming "this interface to AI, especially when you're bringing it to the workplace," as Microsoft repositions for business customers after criticism it trailed Anthropic's Claude and OpenAI's ChatGPT in the enterprise AI race.
- Piper Sandler analysts called the update "MSFT's 'super app'" that had been speculated on for months and said the Copilot narrative has "improved materially" this year.
Why it matters: Microsoft is repositioning Copilot as the central interface for AI in the workplace, with usage-based pricing on advanced features signaling a shift from seat-count monetization to AI-consumption monetization. Piper Sandler's endorsement as MSFT's long-speculated 'super app' gives Wall Street a concrete reason to re-rate the Copilot narrative after months of trailing Anthropic and OpenAI.
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