ZDNET’s key takeaways
- Microsoft 365 Family and Premium subscriptions are about to change.
- The new plans will offer shared pools of AI usage credits and OneDrive storage.
- Some subscribers could be forced to move data or pay double or triple their current rates.
Microsoft 365 subscribers are about to experience a cloud version of shrinkflation. Microsoft announced today that it will be making changes to its Microsoft 365 Personal, Family, Premium, and Pro subscriptions, positioning the updates as giving users “more flexibility with their AI and cloud storage benefits.” However, for users who rely heavily on storage and AI, the net effect could be a significant price increase.
New storage and AI limits
The storage reduction is most pronounced for the shared OneDrive allocation. Currently, a Microsoft 365 Family, Premium, or Pro plan provides each member with a dedicated 1 TB of storage, totaling 6 TB for up to six users. After the changes, Family and Premium plans will move to a shared pool of only 2 TB for the entire subscription, while the Pro plan will receive 5 TB shared storage.
Microsoft 365 Pro—quietly launched in September—offers the largest shared pool at 5 TB and the highest AI usage limits, but it carries a $100‑per‑month price tag.
For households that exceed the new 2 TB total, the cost impact can be steep. The Family plan costs $130 per year (about $10.83 per month). Each extra 1 TB of OneDrive storage adds $10 per month. If a family uses roughly half of the previous 6 TB allowance, their monthly bill could double or even triple.
The AI credit shift is less painful. Copilot credits currently belong only to the primary account holder. Under the new model, family members can share AI credits, and the owner gains the ability to manage access for younger users. Premium and Pro subscribers will also have the option to purchase additional AI credits.
Why Microsoft is making these changes
The likely driver is to curb “storage hoarders” who have been exploiting the 6 TB Family allowance by creating secondary accounts and filling their OneDrive quotas. Microsoft previously reneged on unlimited OneDrive storage in 2014 after a few power users consumed more than 75 TB each, prompting the company to adjust its policy.
Microsoft blamed a small number of users for the change in heart, noting, “A small number of users,” they wrote, “backed up numerous PCs and stored entire movie collections and DVR recordings. In some instances, this exceeded 75 TB per user or 14 000 times the average.”
Shared storage and AI credit pools bring Microsoft’s offerings into closer alignment with competitors such as Google One and Apple’s iCloud+ services, which also provide pooled storage and AI benefits.
The rollout will begin with new and upgraded subscriptions on Oct. 8, 2026, while existing customers will transition to shared storage at their first renewal on or after May 2, 2027, after receiving advance notice.
Ed Bott
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