By Alex Heath | Published: 2025-10-31 00:30:00 | Source: The Verge
This is an excerpt from Sources by Alex Heatha newsletter about artificial intelligence and the technology industry, is only distributed to The Verge subscribers once a week.
To understand how Microsoft views its role in the AI race, look at what was announced at the company’s GitHub Universe developer conference on Tuesday in San Francisco.
This event was a turning point for one of Microsoft’s most important but often insufficiently analyzed assets. GitHub, used by more than 180 million developers, wants to be the central platform for AI coding agents. It’s new Agent headquarters The interface allows third-party programming assistants, including OpenAI’s Codex and Anthropic’s Claude Code, to plug into the GitHub ecosystem.
The timing is right. If GitHub doesn’t move fast enough, Microsoft risks it left behind Through a wave of interactive programming tools that are rapidly redefining what software development looks like. Tools like the indicator, which coincidentally Announce a big update This week, we’re actually orchestrating the entire workflow for developers instead of just auto-completion of code. While agents have yet to make a significant impact in other sectors, in software development, the boundaries between assistant and coworker are quickly disappearing.
“We need a very open ecosystem.”
Jared Ballmer, GitHub’s new senior vice president, joined Microsoft from Vercel just 10 days before we spoke ahead of this week’s Universe conference. “GitHub is in this interesting transitional phase,” he said. “It has to evolve into a platform not only for people, but also for agents.”
The goal is to keep GitHub “the home where development happens,” regardless of which AI tool developers choose, Ballmer said. “We need a wide-open ecosystem,” he told me. In addition to OpenAI and Anthropic, Google, Cognition, and xAI have also committed to bringing their programming agents to Agent HQ in the coming months.
With GitHub’s long-standing essential role in storing code, it has a good chance of becoming the connective layer between proxies and codebases. This means that Microsoft remains at the center of the developer world. If not, developers could move their work and data elsewhere over time.
Jay Parikh oversees GitHub as Executive Vice President of CoreAI at Microsoft. The Facebook CTO and longtime Atlassian board member joined Microsoft about a year ago and now leads a group of about 10,000 people. Its mission is to rethink Microsoft’s entire stack for building AI applications: the infrastructure, security, and tools that developers use every day.
“We need to move faster,” Parikh told me in an interview this week. “We need to build better tools and different tools. We need that developer ecosystem, that choice, all the things that support this new way of building software.”
“Humans will start spending more time on the specs and creative process and delegate the actual calories they spend to the GPUs.”
He sees GitHub’s role as essential to this plan, which explains why Microsoft included GitHub in its CoreAI group in August. “You really want GitHub to be that place, that toolchain, that developer community to really unlock that innovation,” he said. “Humans will start spending more time on the specs and creative process and delegating the actual calories they spend to the GPUs, to the coding agents that generate the code.”
As Kyle Daigle, COO at GitHub, told me, “A developer shouldn’t build memory and context into every tool they use in this age of AI.” You need to be able to connect to GitHub and have that context to define how you want to work, even if you’re using this tool outside of the GitHub platform.
This bet is directly related to Microsoft’s long-standing partnership with OpenAI. On the same day as GitHub Universe, CEO Satya Nadella back on TBPN to discuss Microsoft’s updated partnership with OpenAI. “GitHub is where this billion to ten billion thing happened,” he said — a reference to how GitHub’s early push for Copilot, powered by OpenAI’s Codex, convinced him to significantly expand Microsoft’s initial $1 billion investment in OpenAI.
GitHub has always played two crucial roles: it is a massive repository of open source code and one of the largest collaboration hubs ever created. Engineers use it not only to store and manage their code, but to find jobs and build the community. Microsoft may have sparked the AI coding boom with the original GitHub Copilot, but now it has to prove it can keep up with where the industry is headed.
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