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Microsoft Tests DeepSeek to Build a Cheaper Copilot Cowork Tier

Testing a fine-tuned DeepSeek V4 on Azure aims to create an optional lower-cost Copilot Cowork tier.

Overview

  • This week Microsoft told reporters it is evaluating a fine-tuned DeepSeek V4 and other open-source models as a lower-cost option for parts of Copilot Cowork.
  • The company has moved Copilot Cowork to usage-based billing because some enterprise users run hundreds of automated tasks weekly, which sharply raises compute costs.
  • Microsoft says any DeepSeek-based choice would be optional for customers, run entirely on Azure, and include fine-tuning and added safeguards to reduce bias and improve reliability.
  • Choosing a Chinese-origin model could draw U.S. government scrutiny given recent restrictions on access to advanced models and national-security concerns reported about Anthropic’s latest systems.
  • The tests fit Microsoft’s broader multi-model plan that includes its own Cowork 1 model, and the company expects to announce a final lower-cost Copilot option within the next several weeks.