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Microsoft slashes 365 Family storage to 2TB while expanding Copilot AI access

Microsoft is reducing OneDrive cloud storage on Microsoft 365 Family and Premium plans from 6TB to a shared 2TB pool while expanding Copilot AI features to linked family members.

Graphic showing the number 365 in large white font over green ribbons, topped with app icons for Microsoft 365 products including Copilot and OneDrive.
Image: @NeowinFeed

Microsoft is overhauling its Microsoft 365 Family and Premium subscriptions by shrinking the bundled OneDrive cloud storage from a combined 6TB to a shared 2TB pool across up to six members, according to reporting from Neowin, The Verge, and Analytics Insight. The change shifts the Family tier away from individual 1TB allowances per person to a single pooled storage quota.[5][9][10][11][13]

The storage reduction accompanies an expansion of artificial intelligence tools across shared tiers. Per The Verge's Tom Warren and Neowin, Microsoft is extending Copilot AI capabilities to all linked family members on the Family and Premium plans, allowing all six plan users to access AI features.[3][9][13]

The steep drop in cloud capacity has triggered strong subscriber backlash. TechRadar reported that users are threatening to cancel their plans, labeling the move greedy and a bad decision, while Neowin noted customers are actively contemplating retaliation. Meanwhile, Tom's Hardware reported that Microsoft's decision to slash storage on shared accounts comes amid industry-wide storage shortages.[4][12][14]

Key facts

  • Microsoft is reducing OneDrive cloud storage for Microsoft 365 Family and Premium subscriptions from 6TB to a shared 2TB pool for up to six users.
  • The change replaces individual 1TB OneDrive allowances on Microsoft 365 Family plans with a shared 2TB pool across all family members.
  • Microsoft is extending Copilot AI access to all linked family members across Microsoft 365 Family and Premium tiers.
  • Tom's Hardware reported that Microsoft slashed storage capacity on shared accounts amid industry-wide storage shortages.
  • Subscribers have threatened cancellations and expressed outrage over the storage reduction, with critics describing the move as greedy and a bad decision.
  • ZDNET published multiple alerts confirming that storage included with Microsoft 365 subscriptions is about to shrink.

Sources · 7 sources

  1. ZD

    ZDNET@ZDNETPost on X ·

    Got a Microsoft 365 subscription? Your storage is about to shrink - ZDNET https://t.co/6x9mRXSsg0

    Open source
  2. ZD

    ZDNET@ZDNETPost on X ·

    Got a Microsoft 365 subscription? Your storage is about to shrink - ZDNET https://t.co/tP8WW1uGB4

    Open source
  3. NE

    NeowinFeed@NeowinFeedPost on X ·

    Microsoft is changing its Microsoft 365 Family and Premium tiers by extending Copilot AI capabilities to all linked family members. #Microsoft #Microsoft365Family https://t.co/bS8wO6dur4

    Open source
  4. TH

    Tom's Hardware@tomshardwarePost on X ·

    Microsoft 365 slashes storage capacity for shared accounts amid industry-wide shortages https://t.co/KtrtJ6Ju1s

    Open source
  5. NE

    NeowinFeed@NeowinFeedPost on X ·

    Microsoft is making a major downgrade to Microsoft 365 Family and Premium subscriptions. The combined 6TB of OneDrive storage is being reduced to just 2TB shared across six users. #Microsoft365 #OneDrive https://t.co/uZ5BszQJbp

    Open source
  6. ZD

    ZDNET@ZDNETPost on X ·

    Got a Microsoft 365 subscription? Your storage is about to shrink - ZDNET https://t.co/o8QMKHiLzL

    Open source
  7. ZD

    ZDNET@ZDNETPost on X ·

    Got a Microsoft 365 subscription? Your storage is about to shrink - ZDNET https://t.co/Z1EQKNEsQt

    Open source
  8. ZD

    ZDNET@ZDNETPost on X ·

    Got a Microsoft 365 subscription? Your storage is about to shrink - ZDNET https://t.co/tiofuHv6IL

    Open source
  9. TW

    Tom Warren@tomwarrenPost on X ·

    Microsoft 365 Family subscribers will finally be able to share AI benefits. But OneDrive storage is being cut to a shared 2TB pool across all family members. Full details on Microsoft's changes 👇 https://t.co/semOEv2ty0

    Open source
  10. TV

    The Verge@vergePost on X ·

    But OneDrive storage is being cut to a shared 2TB pool across all family members. https://t.co/NFel8K14bw

    Open source
  11. NE

    NeowinFeed@NeowinFeedPost on X ·

    Microsoft 365 Family OneDrive drops from 6TB to 2TB shared. ^P https://t.co/Lcp72eaq8g

    Open source
  12. NE

    NeowinFeed@NeowinFeedPost on X ·

    Several Microsoft 365 users are thinking about retaliating after OneDrive's storage drops from 6TB to 2TB, sparking outrage. #Microsoft365 #OneDrive https://t.co/7HeUryYcvh

    Open source
  13. AI

    Analytics Insight@analyticsinmePost on X ·

    𝗠𝗶𝗰𝗿𝗼𝘀𝗼𝗳𝘁 𝗢𝗽𝗲𝗻𝘀 𝗖𝗼𝗽𝗶𝗹𝗼𝘁 𝗔𝗜 𝗔𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗙𝗮𝗺𝗶𝗹𝘆 𝗦𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲𝗿𝘀, 𝗯𝘂𝘁 𝗛𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝗖𝗮𝘁𝗰𝗵 Microsoft is changing its 365 Family plans to let all six members access Copilot AI features. But there is a trade-off: the subscription’s OneDrive storage is moving from individual 1TB allowances to a shared 2TB pool. #Microsoft #Microsoft365 #Microsoft365Family #MicrosoftCopilot #CopilotAI #ArtificialIntelligence #AI #MicrosoftUpdate #AnalyticsInsight #AnalyticsInsightMagazine Read More 👇 https://t.co/RCNIXCw1U8

    Open source
  14. TE

    TechRadar@techradarPost on X ·

    'Weasel-speak', 'greedy' and a 'bad decision': Microsoft slashes 365 Family plan's cloud storage from 6TB to 2TB — and subscribers are threatening to cancel https://t.co/PcJ65lUUNZ

    Open source