Microsoft is scrambling to keep GitHub

Microsoft is scrambling to keep GitHub relevant as new breed of Al coding tools threatens to leave it behind. The company has started reshuffling teams and moving engineers around to turn its $7.5 billion acquisition into something more than just a code storage platform-it wants GitHub to become the command center for Al-powered software development.
The problem is clear: developers are increasingly drawn to nimble Al-first rivals like Cursor and Anthropic's Claude Code, which offer a different vision of what coding with Al should feel like. GitHub had the early advantage with its partnership with OpenAl, but that head start is eroding fast.
Jay Parikh, who runs Microsoft's CoreAl Platform and Tools division, didn't mince words in an internal meeting late last year. "GitHub is just not the place anymore where developers are storing code," he told employees, according to audio reviewed by Business Insider. The goal now is to make it "the center of gravity for all of Al- powered software development."