Microsoft Executives Sound the Alarm Over GitHub’s Eroding AI Lead

No part of Microsoft better illustrates its predicament in AI than GitHub.

The AI boom has boosted usage and revenue of the code repository as well as GitHub Copilot, an AI coding assistant. But GitHub has struggled to respond to new AI coding competitors that have since overtaken it. And the service has suffered from frequent and major outages, peeving big customers and prompting Microsoft to issue an apology.

In recent months, Jay Parikh, who oversees the division that includes GitHub, has privately warned colleagues that the unit faces a critical threat.