Microsoft is moving quickly to reshape GitHub as competition intensifies in the AI-powered coding space, with newer, AI-first tools challenging its long-held dominance among developers.
The company is working to ensure GitHub remains relevant as developers increasingly turn to alternatives that offer more seamless AI-driven coding experiences. Microsoft wants GitHub to evolve beyond a code-hosting platform and become the central hub for AI-powered software development. This shift is driven by rising pressure from fast-growing rivals such as Cursor and Anthropic’s Claude Code, which are changing how developers interact with AI while writing software.
GitHub once enjoyed a clear advantage through its early partnership with OpenAI. That lead, however, is shrinking. In an internal meeting late last year, Jay Parikh, who heads Microsoft’s CoreAI Platform and Tools division, acknowledged the challenge. “GitHub is just not the place anymore where developers are storing code,” he told employees, according to audio reviewed by a media report. The new goal, he said, is to make GitHub “the center of gravity for all of AI-powered software development.”
To achieve this, Microsoft wants GitHub’s AI tools to work wherever developers are—across command lines, web browsers, VS Code, and other Microsoft products. The company is also betting heavily on AI agents. The vision is to turn GitHub into a dashboard where developers can manage multiple autonomous coding assistants working together.
In January 2025, Microsoft created the CoreAI group under Parikh, merging its developer division, AI platform team, and GitHub into a single unit. Since then, the company has been reshuffling sales teams and engineering resources. This week, Microsoft transferred a small group of engineers directly into GitHub to accelerate progress.
At the same time, Parikh has pushed teams to strengthen GitHub’s core features. That includes upgrading GitHub Actions, improving analytics, tightening security, and meeting data storage requirements in new markets.
The urgency is clear. While GitHub Copilot still has a large user base, it is losing market share to Cursor among key developer groups, according to Barclays data. During the same internal meeting, a Microsoft engineer directly asked leadership how the company plans to counter rivals that are “moving quickly and capturing a lot of mindshare.”
CEO Satya Nadella has made his expectations clear. He has told teams that the AI shift is as significant as the move to cloud computing and has urged employees to work with startup-level intensity. For GitHub, the message is direct: adapt fast, or risk being left behind as the future of coding takes shape elsewhere.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
