GitHub is transitioning its AI coding assistant, Copilot, from a request-based billing model to a usage-based system, effective June 1, 2026, to address escalating inference costs and prevent operating at a loss. The current model, where complex prompts could cost GitHub more than subscription fees, is no longer sustainable. The new system will meter AI usage by tokens, with a virtual currency called GitHub AI Credits, priced at $0.01 each, to represent consumption of input, output, and cached tokens. While monthly allotments of AI Credits will be included in various Copilot plans, users can purchase additional usage or face limitations once their allowance is depleted. This shift mirrors a broader industry trend of AI companies re-evaluating subsidized access due to surging demand and capacity challenges.