New prompts to subscribe to Microsoft 365 have started popping up when trying to use Notepad's AI features, leading to confusion.

Microsoft officials clarified that Notepad does NOT require you to set up a Microsoft account in order to use the text editor.

While you can still use Notepad without a Microsoft account or a Microsoft 365 subscription, you need to have AI credits to use the app's Rewrite feature. Those credits come with a Microsoft 365 Personal or Family plan,

If you want to use the Notepad Rewrite AI feature, you have to log in with a Microsoft account, but your information will be collected.