Microsoft Pitches $19.99 ‘365 Premium’ Plan as AI Alternative to ChatGPT Plus

Credit: Ken Yeung

Are you a ChatGPT Plus user who wishes it had a direct tie-in with your favorite productivity apps? Microsoft offers an alternative called Microsoft 365 Premium, which it hopes will appeal to power users. Aimed at solopreneurs, professionals, and anyone who depends on AI to tackle their productivity tasks, this $19.99 monthly subscription not only integrates with the Microsoft 365 suite of apps but includes Microsoft’s highest Copilot usage limits, advanced agents, 1 TB of cloud storage, Microsoft Defender security, continuous technical support, and more.

The introduction of Microsoft 365 Premium follows other AI announcements the company has made this week. Earlier, it debuted Agent Mode in Excel and Word and incorporated Copilot Chat, Microsoft’s chatbot, into all Microsoft 365 apps. In doing so, the Windows maker sought to usher in “vibe working”—essentially the same way vibe coding changed software development, Microsoft 365 Copilot aimed to do for productivity. Microsoft 365 Premium is likely another step in making vibe working a lasting trend.

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Subscribers can use the service anywhere, and Copilot access is not required. Microsoft claims that if organizations don’t provide Copilot access, the AI assistant can be accessed directly with Microsoft 365 work files. Moreover, subscribers will have more freedom to use Microsoft 365 agents such as Actions, Researcher, and Analyst.

Microsoft 365 is in direct response to ChatGPT Plus. OpenAI’s $20 monthly plan was introduced in February 2023, offering benefits such as faster response times and priority access during high-traffic periods, as well as access to advanced features.

Unsurprisingly, while Microsoft and OpenAI have a strategic partnership, the relationship has since frayed; only recently did both firms reach a new agreement. Nevertheless, Microsoft has made moves not only to develop first-party models but also to embrace other third-party models. In fact, the company ended OpenAI’s exclusivity in Office, reportedly turning to Anthropic to power the generative AI features in Word, Excel, PowerPoint, and Outlook.

And if you’re looking for more of a sign that this is a shot across OpenAI’s bow, look no further than Microsoft’s release. The company published a chart describing the differences between Microsoft 365 Premium and OpenAI’s ChatGPT Plus. However, the two plans diverge sharply in a few key areas: Microsoft bundles its Office apps, 1 TB of cloud storage per person, and Defender security, while OpenAI offers none of these. On the other hand, OpenAI offers custom GPTs and access to the text-to-video generation model Sora—features that are not currently available in Microsoft 365.

PlanMicrosoft 365 PremiumChatGPT Plus
Monthly Pricing$19.99$20.00
Extended AI usage limitsYes (including GPT-5, 4o image generation, and moreYes (including GPT-5, 4o image generation, and more
Access to agentsYes (Actions, Researcher, Analyst)Yes (ChatGPT Agent)
Advanced voice and visionYesYes
Test new AI featuresYesYes
Productivity appsYes (Word, Excel, PowerPoint, OneNote, Outlook)No
Cloud storageYes (1 TB per person)No
Advanced securityYes (Defender)No
Custom GPTsNoYes
Limited access to SoraNoYes

Besides the launch of Microsoft 365 Premium, Microsoft also has two additional updates: First, it’s giving Microsoft 365 Personal and Family subscribers higher usage limits for Copilot features (e.g., vision, image generation, podcasts, and more). Second, eligible university students worldwide can sign up now through October 31, 2025, to receive a complimentary year of Microsoft 365 Personal.

Featured Image: Credit: Ken Yeung

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