GitHub, the Microsoft-owned coding platform, has announced a significant change to its AI-powered coding assistant, Copilot. Starting May 5, users will face rate limits when switching to advanced AI models, a move that could increase costs for some users. The new system, dubbed "premium requests," aims to manage the computing resources required to run these more capable models.

The change affects users who subscribe to Copilot Pro, Copilot Business, and Copilot Enterprise plans. While the base model, OpenAI's GPT-4o, remains unlimited, tasks and actions using newer models like Anthropic's 3.7 Sonnet will be capped. Copilot Pro users will receive 300 monthly premium requests, while Copilot Business and Copilot Enterprise users will receive 300 and 1,000 requests, respectively. Additional premium requests can be purchased at $0.04 per request, or users can upgrade to the new Copilot Pro+ plan, starting at $39 per month, which offers 1,500 premium requests and access to the latest models, including OpenAI's GPT-4.5.

The move is seen as a response to the increasing computing costs associated with running more advanced AI models. Models like 3.7 Sonnet, which take longer to fact-check their answers, require more computing power, making them more reliable but also more expensive to operate. This price hike comes on the heels of AI coding platform Devin's rate increase for some users, highlighting the growing costs of AI-powered development tools.

Despite the increased costs, Copilot remains a significant revenue driver for GitHub. Microsoft CEO Satya Nadella revealed last August that Copilot accounted for over 40% of GitHub's revenue growth in 2024, making it a larger business than GitHub itself when Microsoft acquired it seven years ago. The platform's success is a testament to the growing demand for AI-powered development tools, which are becoming increasingly essential for developers and businesses alike.

The introduction of premium requests raises questions about the long-term sustainability of AI-powered development tools. As AI models continue to evolve and become more complex, computing costs are likely to increase, putting pressure on providers to balance costs with user needs. The move may also prompt competitors to reassess their pricing strategies, potentially leading to a shift in the AI-powered development tool landscape.

For developers and businesses reliant on Copilot, the change may require a reassessment of their workflows and budgets. While the new pricing structure may be a burden for some, it's likely that the benefits of using advanced AI models will outweigh the costs for many users. As the AI-powered development tool market continues to evolve, one thing is clear: the need for efficient, cost-effective solutions will only continue to grow.