Microsoft reshuffles teams to bolster GitHub as AI coding and agent wars heat up

Microsoft reshuffles teams to bolster GitHub as AI coding and agent wars heat up

By Ashley Stewart
Publication Date: 2026-01-08 10:00:00

Microsoft wants to overhaul GitHub to compete with AI coding rivals and embrace AI agents, and the company has started reshuffling teams to make that happen, according to people familiar with the changes.

GitHub is a leading software development platform that Microsoft acquired in 2018. GitHub had an early lead because of its popularity as a place to store code. Lately, though, GitHub has faced more competition from AI tools such as Cursor and Anthropic’s Claude Code.

Microsoft in January 2025 formed a new group focused on building AI tools under ex-Facebook engineering boss Jay Parikh. The group, called CoreAI Platform and Tools, combined Microsoft’s developer division, AI platform team, and GitHub.

Still, Microsoft and GitHub have remained somewhat separate, and the company has been moving people and resources around over the past few months to better coordinate efforts such as sales, one of the people said. The latest change, happening this week, is…