Microsoft Launches 365 Premium to Rival ChatGPT Plus

The AI productivity race is heating up as Microsoft launches Microsoft 365 Premium, its all-in-one subscription that fuses Copilot with Office – putting it in direct competition with OpenAI’s ChatGPT Plus.

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Published: October 2, 2025

Christopher Carey

Microsoft is officially sunsetting Copilot Pro and introducing a brand-new subscription tier designed to rival OpenAI’s ChatGPT Plus.

The new plan, called Microsoft 365 Premium, consolidates AI-powered Office features with the company’s productivity suite in a single, streamlined subscription.

At $19.99 per month, Premium lands at the exact same price point as ChatGPT Plus, setting the stage for a head-to-head battle for the AI productivity crown.

“We believe that embedding AI into the flow of work unlocks new levels of productivity, helping everyone work smarter, faster, and more creatively.” said Yusuf Mehdi, Consumer Chief Marketing Officer, Microsoft.

But where OpenAI leans on model access and chat-first workflows, Microsoft is going all-in on its strongest differentiator: Office integration.

The End of Copilot Pro, the Birth of Premium

When Microsoft launched Copilot Pro in late 2023, it was positioned as a power-user add-on: an extra $20 per month on top of an existing Microsoft 365 subscription, giving users priority access to cutting-edge AI models, higher usage limits, and exclusive features like GPT-powered design tools.

But the two-tier system proved confusing. Earlier this year, Microsoft began bundling Copilot features directly into Microsoft 365 Personal and Family plans, effectively blurring the lines between Copilot Pro and its mainstream offerings.

Now, with the arrival of Microsoft 365 Premium, the separation is gone. Copilot Pro will no longer be sold, and Premium will serve as Microsoft’s flagship AI + productivity subscription for consumers.

What’s in Microsoft 365 Premium?

Premium combines Microsoft’s full Office suite with its most advanced AI capabilities. Here’s what subscribers get for $19.99 per month:

  • Office apps for up to six users (Word, Excel, PowerPoint, Outlook, OneNote, and more)
  • 1TB of OneDrive cloud storage per person
  • Highest usage limits for Copilot features, including GPT-4o image generation and voice
  • Copilot Podcasts, Deep Research, Vision, and Actions for advanced content creation and analysis
  • Reasoning agents like Researcher and Analyst, soon to be embedded in Word, Excel, and PowerPoint
  • Cross-device support across Windows, Mac, iPad, and mobile apps

That’s a broad package, especially compared to ChatGPT Plus, which focuses primarily on access to the latest OpenAI models (GPT-5), extended usage limits, and multimodal AI tools like image generation and file analysis.

Where ChatGPT Plus shines in versatility, Microsoft 365 Premium leans hard on productivity workflows, embedding AI directly into the tools people already use to write reports, crunch numbers, design presentations, and manage email.

Bringing Your Own AI to Work

Perhaps the most intriguing twist in Microsoft’s announcement is that Premium, Family, and Personal subscribers can now bring Copilot into the workplace.

Traditionally, Microsoft 365 Copilot features have been locked behind enterprise licenses, meaning businesses had to pay extra to unlock AI functionality in their employees’ Office apps.

Now, anyone with a personal Microsoft 365 subscription can sign into their work version of Office and light up Copilot inside Word, Excel, PowerPoint, OneNote, and Outlook.

Crucially, this doesn’t compromise security. Copilot runs within the enterprise environment, so corporate data remains protected by the same compliance and governance controls as before. The AI features are essentially “unlocked” by the user’s personal subscription but applied to the company’s secure workspace.

This could significantly accelerate Copilot adoption in organizations hesitant to pay for enterprise licensing upfront. It also mirrors the BYOD (bring your own device) trend of the past decade – only this time, it’s BYOAI.

Limitations and Growing Pains

For now, Microsoft is restricting these unlocked AI features to the main account holder on Premium and Family subscriptions. That means shared users in a Family plan can’t yet bring Copilot into their work apps.

Another limitation: the cross-sign-in functionality doesn’t work in Office web apps, only in desktop and mobile versions. That may frustrate users who rely heavily on browser-based Office.

Still, the move positions Microsoft uniquely against its rivals. Instead of relying on workplace adoption trickling down to consumers, Microsoft is empowering individuals to bring AI into their jobs, potentially driving bottom-up adoption in enterprises.

While Copilot Pro is effectively being phased out, current subscribers will keep their plan for now.

The Bigger Picture: Microsoft vs. OpenAI

Microsoft 365 Premium is a direct competitive response to OpenAI’s ChatGPT Plus. Both cost the same, both target productivity-focused users, and both position AI as an everyday work companion.

The difference lies in strategy:

  • OpenAI: A chat-first experience, designed for exploration, content creation, and flexible AI interaction.
  • Microsoft: A productivity-first experience, with Copilot deeply embedded into Office tools and aligned with task-specific workflows.

For Microsoft, the bet is simple: workers don’t want another app. They want AI where they already spend their time – inside Word documents, Excel spreadsheets, and Outlook inboxes.

And with new reasoning agents like Researcher and Analyst on the way, Microsoft is doubling down on its vision of task-specific AI that feels like a teammate rather than a chatbot.

Final Word

Microsoft 365 Premium represents a bold consolidation of Microsoft’s AI ambitions. By folding Copilot Pro into a single premium-tier subscription, Microsoft simplifies its offering, strengthens its consumer pitch, and sets itself up for a clear fight with OpenAI’s ChatGPT Plus.

The plan also blurs the lines between personal and professional productivity. With “bring your own AI” now possible, employees may start introducing Copilot into workplaces at scale – whether IT teams are ready for it or not.

For consumers, the choice is now clearer than ever: ChatGPT Plus for general-purpose AI, or Microsoft 365 Premium for productivity-first AI built directly into Office.

And as Microsoft puts it: in the productivity game, “there is no substitute for the real thing.”

Artificial IntelligenceMicrosoft 365Microsoft CoPilotUCaaSUser ExperienceWorkplace Management

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