Microsoft is adding yet another subscription to its already long list of offerings. The new “Microsoft 365 Premium” plan costs $20 a month and bundles the company’s popular Office apps with powerful AI features, including access to OpenAI’s latest models and higher usage limits.
This new plan is a direct competitor to OpenAI’s own ChatGPT Plus subscription, which also costs $20 per month. Microsoft is making the case that its new plan is a much better deal because it includes all the Office apps you know and love, like Word and Excel, plus 1TB of cloud storage—things you don’t get with ChatGPT Plus. It’s a somewhat unusual move, considering Microsoft and OpenAI are supposed to be close partners.
For now, Microsoft isn’t changing the prices of its lower-priced Office plans, including the $10-per-month Personal plan and the $13-per-month Family plan. In some ways, the new Premium plan simplifies things. Previously, if you wanted the best AI features, you had to pay for a regular Office subscription and an additional $20 per month for “Copilot Pro.” The new Premium plan combines these, making the separate Copilot Pro subscription seem somewhat pointless now.
With the new plan, you’ll get access to OpenAI’s latest AI models, like GPT-5, but you won’t get some of the other perks of a ChatGPT Plus subscription, like access to custom GPTs or the Sora video generator.
