It is reported that Microsoft's GitHub Copilot service has suffered heavy losses and will challenge Nvidia with homemade AI chips.

CTOnews.com, October 10 (Xinhua) over the past year, the craze for generative AI has brought huge profits to many companies. One of the biggest beneficiaries is Nvidia, whose GPU was heavily used in data centers for companies such as Microsoft in 2023, boosting the company's profits and share price.

However, Microsoft has struggled to make money on its AI services. Microsoft lost a lot of money on its first generative AI service, GitHub Copilot, according to the Wall Street Journal.

GitHub Copilot was first launched in June 2022, allowing developers to ask Copilot AI assistants to help write code for applications and services. The service currently charges $10 a month (CTOnews.com Note: currently about 73 yuan), or $100 a year, and GitHub Copilot is free for certified students and users with mature open source projects.

The Wall Street Journal reported that Microsoft has been losing a lot of money on GitHub Copilot since its launch. "in the first few months of this year, Microsoft lost an average of more than $20 a month per user, with some users costing the company as much as $80 a month," the report said. "

Microsoft plans to launch Microsoft Copilot for enterprise users on November 1, an AI service that helps use the company's productivity applications such as Word, PowerPoint, Excel, Outlook, etc., at a cost of $30 per user per month.

The Wall Street Journal also reported that Microsoft has been looking for cheaper ways to run its AI service. One possibility is to make a homemade AI GPU instead of buying it from Nvidia. Recently, it has been reported that Microsoft will officially unveil the AI chip at the Ignite conference on November 14.